There is way too much inventory to rule out 2001 prices or even lower. If the economy takes a dump and employment suffers, as many think it will, 2001 prices are a sure thing, especially in Temecula. If gas stays high and moves higher, this would also help.
Also, it is natural to over-correct, banking on this isn’t being stupid, if it is mart of market dynamics, use it to your advantage. There still aren’t a lot of high paying jobs in the Temecula/Winchester/Murrieta area, but there are a lot of homes still priced ridiculously high. I think too many homes.
TG.. we are nearly at 03 prices in Temecula on a few properties all ready… you think this is the bottom? an 18 months correction for a 10 year mega housing boom? How are you calculating the rent ratio? Rents in this area for the house above are about $1600-1900.
What kind of mortgage can you get that has payments in that range with a purchase price of $319k? and don’t assume that everyone has the standart 20% down, because they don’t.
