I checked a few websites for "recent solds" in Escondido, and most showed a few hundred in the past 6 months for less-than-$225K. I did not search anywhere else.
If you are really serious about buying...
#1 - $38K is not very much income for buying in San Diego, especially with other bills (i.e., car payment). I'm?unsure what criteria you used to determine it is more prudent to buy than rent, but I'd double-check those numbers.
#2 - Assuming you've laid out your family finances and the numbers still point to "buy", work to find a lender you trust to work with you.
#3 - Find a REA in the area you are interested in. They will know what is available.
#4 - Do a lot of homework on the neighborhoods. A REA cannot tell you about things like crime rate, etc. Personally, I'd be a little suspect of neighborhoods with properties under $200K. Look at things like # of rental properties, etc.
Good luck.
Source: http://www.zillow.com/advice-thread/First-time-buyers-in-North-County/510516/
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