Watching “Flip that House” last year, my wife and I couldn’t believe that a crappy, three-bedroom house near the L.A. airport could possibly sell for $550,000. Here’s the latest on the California real estate market:

Statewide, median sales prices fell by a stunning 26% from year-ago levels in February, with home prices dropping at a rate of nearly $3,000 a week, the California Association of Realtors reports. Further, the CAR says the Fed’s interest rate-cutting campaign ‘will have little near-term direct effect on the housing market.'”

That’s 26 percent in one year! I guess nobody can believe that house is worth $550,000 either.