The following is a video I put together showing the Sacramento market meltdown. Each frame is a week of data, and the video covers about 28 months from April 2006 until December 2008. Each color represents a listing price range (see the legend), and each dot is one MLS listing.
The meltdown really started picking up steam by the middle of 2007, as evidenced by the spread of the red dots. Notice also the resiliency of the "good areas" along the river and through parts of downtown, although it looks like price declines are beginning to encroach. 2009 should be interesting, that's for sure.
**Update: Here are the first and last frames in high quality:
April 15, 2006
December 27, 2008
**Update2: It looks like some people are having trouble loading the video, so here's a lower-quality version that should load for everyone: