dharma, the answer to the question is wait on both ideas. The North County has only just started it’s decline and Temecula still has some more falling to do (check foreclosure.com there are 10 NOD’s a day and probably only one sale per day). Wait till it hits bottom and then you will have your question answered, for 2008, rent, even if it means moving again. Why ride out the bad years, be a buyer in them. Moving isn’t going to kill you. Search older posts, look for those started by someone with the moniker 23109, you are the new version of him. He showed up after his landlord tried to sell him his rental, started a new thread every day, rationalized his decision to buy based on three weeks of research and questions and low and behold…he was back here just a few months ago trying to figure out a way to walk away from his house to buy a bigger one for less nearby.
Will some of Temecula’s demographics go down, lower prices and rentals don’t justify it alone. The buyers from 2003-2006 were demographically renters anyway, all you needed was a pulse to buy. At half the price, less people can buy now because they actually have to afford it, be able to prove it and have a down payment (this is why prices are declining, those people cannot buy any longer) if they rent the same house, did the neighborhood change? There are areas neigborhoods that attract different types of people and certain housing styles do the same. High square footage but low bedroom counts, gated areas, HOA areas are my personal favorites for defensive tactics, but you first need to decide what it is you are hoping to avoid, you could be someone that i don’t want to live near and vice versa.
One argument in your husband’s favor, if you think fleeing to shadowridge to find better demographics you haven’t sone your research. Check Sandag for crime and demographic stats, education websites for school scores, you will find that even in the nice part of Vista, the numbers are far below Temec. SEH is another story, it will be higher.