There could be a few reasons the homes on your street aren't selling, These may be reasons you wouldn't face at all. If you'd like, email me, and I can look into why these homes could be sitting.
I can send you listings of homes in your area that have sold, homes in escrow, and homes on the market now. You'll be able to see what the current activity looks like beyond your street, by looking at the listing date, the date a home went into escrow, which homes are sitting, and which sold faster. You may find a pattern in pricing, location, house condition, etc. I can tell you that upgraded homes sell faster than the same model that has no updates, so you could find your home selling faster, and for a bit more.
Even in a bad economy, buyers like what they like. And I understand your frustration with Prop 60; I have several buyers moving inland when they're ready to downsize. There are a lot of great communities inland and in East County; I can list several!
There is a Prop 60 provision though, and I don't know if it'll help you. According to the State Web site, your replacement property can be "110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property." Here's the page address:
Please let me know if I can be of any help! I may be able to suggest some areas you might like, that will work for you financially. I'd like to think you could make it work AND love your new home!