Interesting thread, I’d like to add a couple of observations. I was wondering why what I read about the economy is different than what I actually see. I look around me and it looks like business as usual at most places. The shopping centers are still crowded, there’s still hour long waits at restaurants in OC, freeways are more jammed than ever, the Hummers are back out in full force, and the King of Pop sold out all 50 concerts within a couple of hours. So how can we explain this phenomenon in a nasty recession? By what scaredycat originally posted. People are living rent free. If you don’t have any housing costs then it’s easy to keep on consuming like nothing’s wrong.
Scaredy and others, you also indicated that prices could fall much further. In the area you are referring, Temecula-Murietta, I don’t see how it can fall much further. For crying out loud, prices are under $100 per foot. Prices have fallen more than 50% in most cases. Interest rates are at historic lows. Three years ago on this forum I predicted the government would take rates down to 4%. Nobody believed me back then. Now we’re almost there. Some of you think rates won’t stay this low. Think again. Bernanke and Co. are pulling every trick in the book to stimulate the economy. Banks may become nationalized. If the gov. controls the banks, what’s to stop them from keeping rates low? I mean really low, like 2 percent low, if necessary. This is regardless of what inflation is doing. They have the ability to do it. Bond market implosion? I’ve been hearing that for over a year. Hasn’t happened. Just like the talk that our dollar would be worthless. You see how that’s worked out. It’s strengthened.
Bottom line, don’t count on prices in Temecula-Murietta coming down much more. Interest rates will probably stay low or get lower in the foreseeable future. Home prices up in my neck of the woods, LA/OC, will finally come down and play catch up with SD/RIV counties. The world will not end in 2012, and MJ will be doing an awesome moonwalk at 50.
