Foreclosure in 92592>Question Details

Ryan Lee,  in San Diego, CA

How Low Will they go???

Asked by Ryan Lee, San Diego, CA Wed Sep 19, 2007

Paseo Del Sol went under $300,000 for bank owned homes! How low will the market get! Murrieta had the most reos last month of any city in california! When does it end

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Ryan,
the market here is southwest riverside are reflective of conditions in many other places nationwide. Paseo Del Sol is by far a beautiful and established community. The flip side to this is that many homes in Paseo Del Sol are circa 1997and purchased in the low $100K. While I think that each seller deserves the most that they can get for their home(s) times like these happen.

As far as Murrieta, it has been around as a city for a long time however, over the past several their has definitely been an influx of buyers (myself included, I live up the road in Menifee). A lot of development in this area occured as the adjustable rate financing started to become more and more popular. I can not say for certain, however, I bet that there is a direct relationship with ARM's going into their adjustable period and foreclosures. Some people are simply walking away. In addition to this some homeowner's refinanced or pulled money out of their homes which in hindsight worked against them.

Eventually this will end. While Southwest Riverside County is taking its' lumps like everyone else construction, development and infrastructure projects are still continuing. Buyers from San Diego,(former Oceansider myself), Orange and other counties are making their way over here and checking this area out.

Market conditions have a lot to do with perspective and many times I think it is from the Seller's perspective. When the market is "booming" homeowners (to include myself) are very happy while buyers are struggling to get into the game. But when the tables turn in favor of Buyer's all of a sudden the terminology turns negative, since it is perceived from a Seller's perspective. Currently, for a homeowner the glass is half empty and for the buyer the glass is half full.

When the stock market crashed in 1929 along with other's the Rockerfeller's started purchasing stocks like crazy, they were able to see the opportunity side of the disaster and in retrospect I don't think they have regretted it since. Like the stock market the housing market comes with highs and lows with the odds being in favor of longevity. For Homeowner's it may be best to just hold on (it possible) for Buyer's who didn't get into a home during the past few years prices this could be their time.

In the end, stay positive and make the best choices possible.
1 vote Thank Flag Link Fri Sep 28, 2007
Here's three reasons to expect further price declines in our area

1. CEO of the Bank of America was recently reported as stating his company expects a further price decline of 20% in California

2. PMI Private Mortgage Insurance has identified the Riverside MSA as the area with the greatest risk of future price declines.

3. Median home prices are still over 5 times the median income. Long term average has been 3X.
It is very reasonable to expect movement toward the long run average.

75 years ago our country was in the midst of the Great Depression... now we are in the midst of the Great Correction.

You'll find details on the above comments and much more useful information at http://TheGreatCorrection.com
2 votes Thank Flag Link Sat Aug 9, 2008
Until the number of short sale homes on the market decreases expect the number of REO properties to increase. Keep an eye on "short sales."
1 vote Thank Flag Link Sat Aug 9, 2008
Richard Greenwood sounds like he knows what he is talking about. Anyone Temecula/Southwest Riverside County really needs to pay attention to the quarry issue. If you think property values are determined to rebound and you'll be able to make a mint on a property in 5-7 years think again. If this quarry goes through you'll be seeing these deflated property values that may never get to where they were. How many people are trying to move to the Indio area where the other quarry is? Ever been there? Think about it hard and do your research before you purchase property in the Temecula/Murrieta/Fallbrook area.
1 vote Thank Flag Link Fri Aug 8, 2008
Well, call me crazy, but I'm pretty sure that when prices in Temecula are on par with prices in nice cities in Texas (not the boonies, but family friendly neighborhoods near a large metroplex), then all the people who had to leave California just to be able to afford a home will pack it all back up and come back, because really- if you can get back into SoCal for the same price as Texas and pay half the property taxes, then why wouldn't you? As soon as that happens, supply will start to dry up and we'll climb right back up out of this rut. So here's the deal- when a nice SFH with 4 bedrooms in Temecula with a large yard lists for $185K, then we've hit bottom. That's my prediction. How soon will that happen? That, I can't say...
1 vote Thank Flag Link Tue Aug 5, 2008
Just when I think it can't get better, IT DOES!!! A lot of people in Riverside made some dumb choices by cashing out their equity and buying things they can't afford. They are foreclosing and short selling, left and right. More than half of the homes are REO or pre-foreclosure. Scary!!! Homes are very near the prices my parents bought their home in 2001!
1 vote Thank Flag Link Thu Dec 20, 2007
It is highly likely that home prices will drop 20% from their high about 2 years ago. The wild card here is the affect that the proposed Liberty Quarry will have on home values. To learn more about the quarry, simply search "Liberty Quarry" in Google.
Web Reference: http://LibertyQuarry.com
1 vote Thank Flag Link Thu Sep 20, 2007
Ryan ,

stop trying to figure things on the Internet

Get a GOOD experienced Real Estate Broker and

they should SAVE You as much or close to it as they make .

Same as a Good Doctor or Attorney (And do it now---Do not let a problem

grow before seeing a Good professional whether it is Heath or Wealth or ? Good Luck , Bob

Same advice I would give my own family .
Web Reference: http://www.HomeSearches.com
0 votes Thank Flag Link Sun Nov 28, 2010
I'm with ya Ryan! I think we need to hang on to our hats because it's certainly not going to be over for awhile. How low it will go should be part of the ride! The sad news....the conventional sellers just can not compete with bank owned properties. It's difficult to try and justify or explain this crazy market to our sellers.

These bank owned properties must & will sell and they lower their prices every month until they do or else go to auction. Sometimes the auction properties find their way back onto the market because they don't even sell at action. The good news is that the bank owned homes are getting spruced up by the banks, lawns are being watered, pools are being filled, carpets are being cleans, painting is being done etc..,, they are taking action to make it shine as well as price it low....our standard sellers can't compete by price but atleast the banks are taking care of the brown lawns and such so it doesn't make the neighborhood look so bad for the other owners/sellers!

Here is Temecula, just in the last 2 weeks, I have been in 4-5 multiple offer situations. If the bank owned homes are priced well below market, they are flying off the shelves. There was a home in Temecula that had 19 offers in 24 hrs just 1 week ago!!!!!
Web Reference: http://www.LisaForss.com
0 votes Thank Flag Link Thu Dec 20, 2007
How low will they go is a good question? It is unfortunate that more and more people can’t make their house payment and have to give them back to the bank. We are expecting the market to come back in late 2008 or early 2009. For now it’s going to be a bumpy ride. Keep in mind that more millionaires are made in this kind of a market. The only thing we can do is educate our sellers on what’s going on and give them a far sells price or just tell them to hold on to their home for now and wait a year or two.
Web Reference: http://www.4saletours.com
0 votes Thank Flag Link Mon Sep 24, 2007
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