Taking a Cash Position and Awaiting the next Dip?

[Debbie Holland]

I invest in Southern California, more specifically the Perris, Moreno Valley and Hemet areas of Riverside County. This area is one of the most volatile real estate markets in the entire country. Median home values in this area went from $80k in '00, to $400k in '06, to $140k in '09, to 320k today. Due to it's volatility, this market has been extremely good to me. However, I am seeing the writing on the wall and have taken and am currently holding a cash position. I wanted to see what other investors thoughts are about the market.