Median income of 92592 is 69k, traditional median home prices are 5-7x median income (350 on a down year and 470k in a good year).
TG – Generally I agree with your conclusions however I believe you may be wrong that the median home price in Temecula is traditionally 5-7x median income. According to City-Data.com the median income in Temecula in 2000 was $59,516 and the median home price was $190,100 roughly 3x income. I think there is an argument to be made that the median home price will return to this level. 69k x 3 = 207k, only time will tell.
On a side note an insane amount of info about Temecula can be found here http://www.cityoftemecula.org/NR/rdonlyres/6089BD40-13DB-409D-9A35-FC89D90479F8/0/husingreport2007.pdf
