It’s possible. I live in Riverside. I bought my home new in Feb 88 for $110K. By the time it was finished and I moved in, they were selling new ones for $140K. Anyone care to guess what my place is worth today? Yup, I’d say about $140k! Adjusted for inflation and the 10.5% 1988 interest rates, houses here are now about 40% cheaper than they were in 1988.
The house next door sold about 6 months ago for $180k and it’s a bit bigger with a pool. 1988 prices baby! Good thing mine’s nearly paid off…..
In the last 3 months the price declines in this area have nearly stopped. Or at least they’ve taken a break. I really don’t see them going too much lower because it’s now about 20% cheaper to buy than to rent. These homes are renting for $1200~$1500/mo. Even if rents drop I don’t see them going below the cost of buying anytime soon. Now I just need the better areas of Corona to catch up!
