I don’t know about indicators, but if you bought in 2003, you’re sitting pretty on some nice equity. I would say if you don’t HAVE to sell, don’t do it now. Interest rates are not great, new guidelines for loans make it more difficult for buyers to qualify, and there is a glut of homes for sale on the market.

The fact that you are 3 blocks from the beach is GREAT! That means you will never have trouble selling. But, had you sold a year ago, the price would have been higher.

Once the mortgage issues work themselves out, you’ll see another steady increase in values.

So for me, I wouldn’t sell anything in CA now. Now is the time to BUY. You can get foreclosures at 20% below what they sold for 1 to 2 years ago, and the banks are taking a beating.

People who put money down but are locked into a hard prepay and facing an interest rate hike may be willing to sell just to get out. You can take over payments, do a contract for sale, or a lease option. Prices have not been this good in a long time, so I would hold on to what I had and buy investment property, or rent your primary residence and buy a new primary residence.

The tax law for the $250K exclusion ($500K married filing jointly) applies so long as you have lived in the home for 2 of the last 5 years!!!! So you could rent it out, buy something new, and in 3 years sell it and still get the exclusion. It’s the best of both worlds.

Sell, Sell, Sell, and the good news is you will not have to pay any capital gains taxes since you have owned the property for more than 2 years as a primary residence. Trust yourself-this is important, if / when you go to sell and list with an agent the listing price you pay is negotiable (federal law price fixing ). Also when you buy in my state the realtor can share a portion of the commission thay earn with you( have to check Calf). Good luck.