For those wondering which direction the market is headed, here is an area in Carlsbad that seems to be headed in the right direction. Part of the reason is this area does not contain many newer homes, so either local builders are not slashing prices and bringing down the values, or recent buyers who bought too much house are not foreclosing or doing short sales as much as many other parts of San Diego.

I used the Sandicor MLS looking at 6 month intervals from 2003-2008. Detached homes with an average size of 1900 square feet and built before 2000. Olde Carlsbad is an area east of I5, west of El Camino Real, south of Hwy 78, north of Cannon Rd.

If you find this information useful, and would like to see it for other neighborhoods, let me know and I'd be happy to generate the data.