I agree with paramount’s experience, the buying frenzy is on like donky kong up here. I think Nor’s opinion of it now being similar to “midwest pricing” and appealing to retirees, I see a lot of them at the open houses, exactly what he refers to, the “pre-retirees” in their fifties and sixties, buying nice places in the 2’s and 3’s near wineries and golf. There is a lot to be said about that as a demographic, many early retirees are looking for the ability to pay cash while being within driving range of grandchildren.
As far as the REO’s, I am definately going to buy this fall, I am seeing the next pricing chunk, despite the frenzy and I have seen some examples of the frenzy waning. Just saw a bunch of new listings, shorts and reo’s start out at sub 100 a square for medium sized places, not mcmansions, soething we haven’t seen in a while. I am also seeing 1996 price examples, 1700 sq for 170k, 2200 sq for 220k, etc. and they are in nice tracts. It was one thing to see 3500 sq for 350k, but to see smaller places for a $100 is beyond what I ever expected. We are about to over arch, overcorrect if you will. I’m glad I was outbid last month.
Just a few of the new listings this weekend, the popcorn is popping hard, all are penciling out below rent, all below 250k list for decent sfr fixers.
$1265 is the P&I on 200k loan for a house of 250k (with 20% down, 50k), $1500 is rent for a townhouse here, $884 is the P&I on the cheapest one I linked with 20% (35k) and it would rent for $1500 easily.
I’ve been thinking about the future of the valley because of these prices and despite all of the fears of economic meltdown, if the rest of the state followed the Temecula model it would be the best thing that ever happened economically. Retirees wouldn’t leave with their money, families would have lots of disposable income, young couples could actually buy and have kids, mom’s could stay home. Those three houses feed into a 800 api school. Why are our leaders trying to fight the correction in housing, they should be rolling out the red carpet and ushering in the next phase, where people have more than half of their income available to feed economic growth.
