Just because home prices appear to be so low that you can’t build a home for less, doesn’t mean that the price is at a bottom.
Supply and demand is the BIGGEST factor that dictates market values. Right now we have massive supply a dwindling demand. In the next few years, prices will fall.
Also another common myth, especially on this forum, is that when it costs “as much to own as it does to rent” prices have bottomed.
When gas hits $5.oo per gallon, and the residents are forced to significantly reduce discretionary spending, many people will be laid off. Jobs aren’t exactly abundant right now, and the cost of living is rising. Owning a home at these so called “bargain” prices won’t be possible for many. As bad as things may seem in Temecula, there is a strong possibility that things could continue to get worse for a while.
