Pizzaman: Good analysis………..BUT………………………….
There are no guarantees as to how low prices will fall. Personally, I believe that Temecula prices will fall to at least 2001 prices and it’s highly likely that they could drop to 1998 prices. There’s just too much inventory and it’s growing daily. As more ARM’s reset, there’s going to be a lot more inventory.
There will be a severe shortage of qualified buyers and this will put enormous pressure on prices to go further down. There’s also going to be a lot of people out of work due to a worsening recession and this will also drive prices down. Renting for a minimum of at least one, additional year after the median hits $260k may just save you a lot of money. Best of luck to you, whatever you choose to do.
