… you must make about $250K a year, and 20K is a pocket change for you.

Huh ? Since when is 8% of one’s income pocket change ?

Anyway, home prices in San Diego are broadly lower than 3 years ago. In 6 months the seasonal factors will be in a buyer’s favor. Someone buying in Fall 2008 will be in a substantially better position than someone who bought in 2004, 2005, 2006, or 2007. I don’t think it will be the bottom this Fall, but I believe that someone buying late this year or in 2009 will NOT regret it in 10 years.