I’ll speak in broad generalities. I live in Rancho Bernardo, near Poway, and I’m seeing prices dip below $300/Sq. foot in a number of instances here already.
I did a regression once, and the size of the house makes a huge difference. I think at one point, I found that once you get beyond 1,800 sqare feet or so, the marginal cost per square foot is only $150 or so.
This would explain in my area why you can get a 1,500 square foot house for 500K, a 2,000 square foot house for 650K, or a 3,000 square foot house for 800K.
If you want to live on the coast, you may struggle to hit that price point.
Zillow has some really cool heat maps…Go to http://www.zillow.com. Type in san diego, ca. Then, in the box in the upper right hand corner of the map, type heat map. It will show you exactly what you are looking for.
Current take is that you’ll need to go inland to hit that price point. Everyone here will tell you to rent. I am renting on the belief that we have another 20% to go before bottom.
