Before it’s all over, I
Submitted by paramount on February 14, 2009 – 12:27am.
Before it’s all over, I believe my house will drop to about 120k.”
Why do you pick that number? If your house is large (2500 sq’ and up) and in the best areas of Trafficula, then maybe.
The Inland Empire has like the third worst unemployment in the country, bad traffic, bad weather and ugly surroundings. What makes it different than Az communities that are far flung from the job centers? AZ has good weather, lower taxes, less regulation, cheaper cost of living, tons more open space for recreation and the AZ desert is beautiful.
Az towns like Maricopa outside Phoenix and Casa Grande outside Tucson are awesome new master planned communities where you can buy a 2 year old REO for $50k.
Jobs will be the determining factor going forward for your Temecula value. Since CA is not business friendly, tax heavy and expensive, the FIRE economy that fueled the senseless run-up in fantasy prices will not come back. There is simply no industry to replace the phony FIRE jobs Temecula and IE were built on.
People who bought from 2000 in the bubble areas ALL chatted about the appreciation they would enjoy in coming years. Now they ALL chat about how its everyone elses fault that their gamble went bad. Look to Japan for an answer on your mortgage and house value. The Gov. will do what they can to hide reality and you will see your house fall in value for 15 years.
Japan is the succesful model for dealing with the kind of speculator fueled madness this country has seen. Our Gov. is taking the exact same steps as Japan to deal with this mess. It will just take a while for everyone in the bubble states to come to grips with the reality that houses are just another depreciating asset, in a sane world.
