The bubble is back, baby!
Check out this little townhouse neighborhood by the library. It's a good case study, because there are a lot of homogeneous units, and they trade relatively frequently. They got into the low-$800's in 2005-07. By 2009-10 they had dropped back to the $600's.
293 Triton sold in September for a record $840,000. 449 Pescadero listed last month at $875,000 (since pulled).
Your mileage may vary. Some of this reflects a preference shift toward smaller, lower-price, low-maintenance units in prime locations. I wouldn't expect most of Encinitas to pass peak pricing for quite a while.