emith – I’m curious why you think it only needs another 10% haircut. Median household income is 60k. If a 3 bed/2 bath 450k house only takes a 10% haircut you are still looking at nearly a 400k house. Even if you had the $80000 down payment you are going to be paying around 2500 a month after taxes/insurance at 6% interest rate. You can rent that house for probably 1800.

I think it needs a bit more of a decrease for that median household income (or even 75th percentile) to be able purchase a house like that and thats assuming you have 20% down.

Even the houses on the lower end of the pricing spectrum in Mira Mesa will need bigger than 10% drops to reach affordability and match rents.