Yes; 50% off from peak/reversion to 2000 prices appears very reasonable. A good thumb rule is to see Temecula price dynamics and add a price premium for a nearer location to San Diego. Temecula seems to be approaching/in the $100/SqFt for this size houses. So, $100-$150 seems like a fair price for north county.
If gas crosses $5, the downward pressure will be large enough to push most values towards the $100 side. Then, this house can easily go below $400K
