A drop of 2 percent…that is what is expected to happen to housing prices in California during 2007, according to the state Association of Realtors as reported by Eve Mitchell in the Mercury News. Some good news,though. The market, says the Mercury News article, should fair slightly better up in the Bay Area, in large measure because there is a much tighter housing supply there.

So, where in California are housing prices expected to take the biggest beating? According the article, the Central Valley,the wine country,the San Diego area and the Riverside/San Bernardino regions.