Arches.. ohh man.. there will be nothing even close to resembling a bottoming up here in the Temecula/Murrieta area for a while. The party has just started. Have you seen the inventory? This is only the beginning, a 10 year UBER RE boom won’t correct in 18 months. Historically it takes about 5 years, due to the magnitude of this bubble, it may take more.
The lower interest rates really aren’t helping RE at all. Inventory is still climbing and interest on a 30 year fixed loan(the “least” risky) aren’t dropping, if anything they are rising to help compensate the foreigners who are loosing money by loaning us all this cash while our dollar looses its value.
Not one home has burnt down in Temecula, and in another thread I took away the conclusion that the San Diego county fires will not help RE values, if anything, may make them worse.
Mortgage reform isn’t as powerful as it sounds. Even a mortgage that has been re-fied at a discount rate is still too much for the home owners. The fact that they now have little, no, or even negative equity is likely to have them hand over the keys more than a payment they can barely afford. And now since we will not be taxing them on the difference if they have a short sale, it is encouraging them to sell.
There are a lot of nice rentals in this area. Good luck!
