Anyways, TG, I’m not seeing the next chunk down, I’m seeing the next chunk up. What gives? How long can these sellers stay at these insane prices? I am not bullish by any means on housing, but there seems to be no real deals. Is this the spring/summer rally that we all expected? Are all of these listings going to turn into REOs for 2009? Temecula has to be hurting… from gas prices to lack of employment…
After thinking about it, I don’t think this is the last wheel off of the bus. I still think that there’s more to fall up here. The effects of food and energy inflation haven’t quite set in, and I think they will in the next few months/years. We know that this area is more prone to the bad effects of higher gas prices than others. Also, we still have a huge number of homes in the bank owned pipeline. You and I both know this and these homes won’t be listed for another 6 months or so. The contraction in jobs this year will likely increase a bit more and that will also have a delayed effect on the housing market. Not to mention the reset chart will still be strong going forward, and home owners now realize that they can live about 8 months rent free in their dying home, only postponing the inevitable.
I just think we are at a flat spot in the downward staircase of home prices. I honestly feel like in the next 4-10 months, there will be another significant price movement downward over in this valley. I know this sounds a bit speculative, but I guess only time will tell. Theres no way that we have bottomed in the Temecula Valley.
