We looked at houses in Rancho Penasquitos around early 2000, before Hwy56 went through, thinking that the home prices would jump after Hwy56 was completed. I don’t think it really made a difference, though. RP is in the Poway School District, yet is much nearer the coast than Poway, making the climate much more temperate. However, RP housing is so old, and the neighborhoods looked so much like run-down rental areas (w/ lots of old cars parked along every street), that we passed on that and ended up buying a house in the inland area.

I think you’ll find a lot more options in your price range in a few years. Heck, you might even be able to afford a condo in Del Mar or Oceanside in 2010.

Interesting, about the lenders. I think they’re getting worried about their exposure. The CEO of Countrywide stated that from summer 2006 and going over the following 14 months, there’ll be lots of ARMs resetting, and people won’t be able to afford the payments and will foreclose. They’re trying to help their customers get into fixed mortgages. For some reason, the rates on the adjustables aren’t that much lower now. I suppose the investors want a risk premium. Everyone is realizing those loans are too risky.

I know the conversion that you are talking about. I’ve received way too many flyers in the mail from them over the past year. The complex sits right next to the 56 and all the traffic. The place has been repainted and the clubhouse remodelled. Essentially, you would be buying an old redecorated apartment that still has the exact same neighbor and freeway noise issues from its rental days. A little poking around online turned up several units that have been listed on the MLS, most of them showing 139 days so far.

I think you’ll be able to find something nicer and better later on. I’m certainly not buying there.

(Not investment advice.)

NOT Investment Advice! The price decline has just started. Go look, keep looking to keep your pulse on the market, but buying now you would be buying at just past the top of the biggest housing bubble in history. Read the Bubble Primer, look at the graphs. Past corrections took 4 – 8 years, or something like that. Make sure you get only a 15 yr or 30 yr fixed, because ARM payments can double after the introductory period ends. I just sold my house, and am renting until the correction ends. Keeping my cash ready to buy when the time is right. Again, not investment advice, just common sense based on history.

I rent not too far from Cantabria… that used to be an Avalon complex, if I remember correctly. When they started to sell, I wasn’t impressed, as those were just about as “apartment-like” as you could get in a condo.

But relative to the rest of the area, the prices are indeed rock-bottom. You of course get what you pay for… although in this environment, you get a lot less.

Then again, for where you work, it’s not a bad drive – certainly better than the Oceanside commute.

I have no idea exactly what they’re thinking, but DR Horton is building a huge hotel-looking thing on the 56 at Camino Del Sur in Torrey Highlands, next to their townhomes.

As many of those ~1050 sf townhomes have been on the market for quite awhile (all listed over $400k but they’ve begun to reduce), you may look out for what DR Horton does with that new construction. I assume those are meant to be condos, but I have no idea how they will sell them all if that’s the case.

Scott

I started looking at PQ last week and went to Cantabria. The sales lady told me that they still have over 40+ units that they are trying to sell. Of course, throwing in incentives like free first year HOA. But HOA is $244! Definetely hear freeway noises from inside the apartment. I work in Poway but live in Santee, so a shorter commute would be great.