The days of funny money loans are gone. Determining market value requires a ready willing and ABLE buyer and the financing available five years from now, will determine ability.
There is a strong demand to buy in Temecula which has pushed the median home values up (since hitting the bottom) and I believe prices will hold steady and increase in the coming months. Surprisingly, standard sales have edged out short sales and bank owned sales in the past 3 of 4 months. February 2012, broke this trend with 53 Short Sales closing compared to 50 Standard Sales and 33 Bank Owned or REO sales.
The Avg price for a Standard Sale in Temecula in February 2012, was $318,872 or $132.90 per sq ft.
Buyers are surprised to learn that Temecula is not suffering a lull in the market like many other areas. Yes, I know it's hard to believe, but you shouldn't buy into all you hear in the media. HaHa!
I think Temecula will continue to see prices increase due to a variety of reasons, but I think the top three reasons are:
1. Affordability. You simply get more for you money compared to neighboring San Diego County
2. Top notch school district. Temecula Valley Unified School District has been ranked #1 within Riverside County.
3. Family Friendly. This is a great place to raise a family because of the school district and emphasis on family activities.
My wife and I moved our family from Orange County to Temecula back in 2003 and we haven't looked back since.
If you're looking for more info on Temecula please don't hesitate to contact me or visit this blog: http://www.livetemeculavallley.com
(We have been here over 20 years. I think there were 35,000 people and there wasn't a road more than 2 lanes!)
Our current state is that there are more buyers than homes for sale. Our prices are already higher than our neighboring communites to the north and the bulk of Temecula is sitting with most of it's neighborhoods at lower tax rates which I think puts us in a better situation for appreciating home prices. I believe the appreciation will be more controlled than the move out of our last dip but who knows for sure?
As with the other comments Temecula's location is by far the best value in Southern Californiaâ€¦.so many things to offerâ€¦for rock bottom pricesâ€¦.for now!
Best Regards Jim
"Funny money" loans are gone, so appreciation will be dependent on more employment and the type of jobs.
A huge increase in minimum wage employment is not likely to trigger appreciation. These home buyers will be limited to entry level homes.