Just thought I would chime in once more, having been called Pollyanna.
My main point is that where I live a large group of the new buyers of 2004-6 have washed out. On my cul-de-sac, which has 14 homes, only 4 homes, including mine, are still owned by their initial buyers.
The “second wave” of buyers have to cope with whatever problems are ahead for the economy, and I personally do think prices will still go lower. Still these are families that have gotten good interest rates, and who have paid half of what peak buyers paid. Keep in mind also that Temecula/Murrieta does have a smattering of retired people and recent cash buyers who came from more expensive areas.
Don’t get me wrong: California is a mess, but I stand by my point that this area has seen the worst.
