TG: WAIT! I agree with Bugs wholeheartedly. I would also add that there is a probable flood of REO properties about to hit the Temecula market fairly shortly.

Just for grins, I have been watching the pricing in Temecula and Murrieta, as well as keeping my ear to the ground as far as anecdotal information on housing goes.

Pricing has held in the tonier areas, such as Redhawk, but it is definitely starting to shift, and I think when it does go (such as when the banks really starting pushing REO inventory to clear the books), you will see pricing in the $100 to $120sf range.

There have been some fairly significant price drops here in Fallbrook, and in areas once thought immune.