The 2008 downturn was a once in a lifetime thing. A 40-50% drop in SD house prices isn’t likely to happen again.
I doubt you’ll see more than a 10-15% price drop, if that, with the next one. So the question becomes: are you confident enough in knowing the peak and bottom to sell and wait? Because if you’re not, then you’ll capture much less than the 10-15% difference and in the meantime, you’ll have to put up with the headaches of being a renter. That could go on for several years.
On the other hand, prices in Temecula may drop more than San Diego, so that may need to be factored in to when you sell and buy again.
I have headed south out of Temecula in the 2-3 PM time frame recently and was shocked at the I-15 North traffic…it was outrageous! All the way from Pala up through Temecula. I wouldn’t be putting up with that commute unless I had absolutely no alternative.
Perhaps you can sell in T-town and buy a fixer in San Diego? That may allow you to buy more than you could otherwise afford.
Good luck with whatever you decide. These major financial decisions aren’t easy or perfect.
