Funny the subject of Murrieta/Temecula should come up. I just got done appraising an industrial building in Murrieta. What struck me was the amount of industrial development happening on the west side of the freeway and the amount of vacancy. Even more striking is that of the units being rented or purchased, most of those businesses are either related to real estate,furniture and home improvements; or motorsports. Both of those segments of our economy are very vulnerable to the effects of the real estate market decline.

Those units will all get rented out eventually and there will be employment out there, but the big question is whether it will be the type of employment that will support homeownership.

And yes, the outlying areas always get hurt worse than the areas closer to employment.