Even with high taxes, you are saving a lot from month to month by not buying now.
As for when to buy, I would say that it would be very risky to buy until at least 60% of the new mortgages written in your area are amortizing mortgages and lenders resume requiring downpayments. As long as an area’s price range is being propped up by interest-only and/or option ARM’s, there is a built-in future correction. Because of San Diego’s uniqueness, you can have a higher percentage of these without a crash. But you can’t have 80% high-risk mortgage originations without a future loss of RE value, so SD has a long way to go, and the direction is straight down.
