….. Will it go down to 100k? I seriously doubt it. So the downside risk in my opinion is 10-20k (10%)….

Why have any downside risk if you help it? I would wait until prices at LEAST stabilize if not start appreciating.

FACT: Prices are still declining…

REPEAT FACT: Prices are still declining…

It makes 0 sense to buy a home in a declining housing market. Ask anyone with a brain.

As far as Temecula and 100K, I bought my Murietta house at $150K in 1999, and I would submit to you that prices will be back to those levels within the next 2 years. Why, because like TG said, there are no jobs in the area and housing is all about supply and demand. Temecula and Murrieta are over built, meaning too much supply. If you can buy near your work for $200 to $299K, why the hell would you pay any where near that to drive to SD or LA with the “951 croud, AKA people of the dirt. I use to be one of them, and you could’nt pay me to move back there vs SD.