Any chance of you moving to Denver sooner? The market there is absolutely horrible right now, and prices are 1/3 the price they are here and still going down. My wife and I and two kids have been looking in Ft. Collins, Denver and Colorado Springs and the deals are amazing, but considered high by locals!
My advice is to break your escrow and not buy. Even if we assume no recession, and small drops in price, it is still not a good time to buy as this year it will only get worse now that the summer is over. Rent a house at 1/2 the cost ($1900 for a small home even in Carlsbad, Encinitas), closer to the ocean in a better school district. Put your money in money market/Tbills/Savings and secure your ability to buy that nice home in Denver. As your money grows, watch Denver and San Diego fall and look for deals.
