First things first… is there any chance you can renew the lease for another year come March? I only say that because in my humble opinion, the more desireable areas such as those you mentioned are stickier on the way down then other less desireable homes. So if your lease is up in 09 verses 08, you will most likely find a better deal.
Now if that is not the case and you guys are really set on buying in 08, the next thing is, could you hold out until later in the summer verses in the spring? I say that because we generally see small cyclical upticks in the spring simply due to seasonal buyers tend to come out at that time. Inventory is usually well stocked in the springs and the most sought after homes tend to sell in this timeframe. So it is a kind of double edged sword, the most desireable homes tend to be available with the best inventory but the pricing is not the best. Some may argue that this spring may be different due to the depreciating market. That could be true but I envision this depreciating market to occur over a long stretch of time and the small cyclical bumps to still occur.
In terms of the areas you mentioned, I assume you want so stay somewhat coastal, but your choice is really going to be driven by the middle and upper level schools is that correct?
With that said, your choices seem pretty darn good… Have you considered south towards Solana Beach at all? Perhaps some of the older stock in Carmel Valley but finding a home with nobody behind you is tough there. I think your best bet per your description is some of the homes in that South Carlsbad and La Costa area but you need to make sure the schools are what you prefer.
