We looked at houses in Rancho Penasquitos around early 2000, before Hwy56 went through, thinking that the home prices would jump after Hwy56 was completed. I don’t think it really made a difference, though. RP is in the Poway School District, yet is much nearer the coast than Poway, making the climate much more temperate. However, RP housing is so old, and the neighborhoods looked so much like run-down rental areas (w/ lots of old cars parked along every street), that we passed on that and ended up buying a house in the inland area.
I think you’ll find a lot more options in your price range in a few years. Heck, you might even be able to afford a condo in Del Mar or Oceanside in 2010.
Interesting, about the lenders. I think they’re getting worried about their exposure. The CEO of Countrywide stated that from summer 2006 and going over the following 14 months, there’ll be lots of ARMs resetting, and people won’t be able to afford the payments and will foreclose. They’re trying to help their customers get into fixed mortgages. For some reason, the rates on the adjustables aren’t that much lower now. I suppose the investors want a risk premium. Everyone is realizing those loans are too risky.
