I’m not as negative about the market as most on this forum – and I also have 20 years experience doing residential appraisals in San Diego. The only area of San Diego that I would definitely, definitely, DEFINITELY urge you not to buy would be a condo downtown. The speculation there got completely out of control in 2003-2004 due to a lack of new and resale inventory, and the potential is there for a very ugly situation in the years to come.