I would like to add that the high cost of energy(especially in the future) will play a factor on the fall of the Temecula Valley home prices and possible the population as well. As mentioned before it is a bedroom community, a commuter town, or an exburb … http://en.wikipedia.org/wiki/Exburb.
There are relatively few “real” jobs here, you know, ones that require a degree and pay over 6 figures. I expect gas prices to rise sharply again over the next year, as well as electic bills and gas bills. Luckily this area has a decent climate compared to the rest of the country, but I still hear of $800 elec. bills this past summer. All these McMansions will take their tolls on the residents utilities bills.
Combine the high mortgages(and resetting higher) with high taxes, HOA fees, rising fuel costs, rising utilities, rising food costs, and now the guy who commutes to San Diego is in a big pinch, even with a decent salary(if he keeps his job). The locals who work at the mall, Costco, and school districts aren’t getting raises that come close to keeping up with inflation. They may not commute, but the few dollars they make aren’t able to keep up. + There are a lot, I mean A LOT of homes up in this area.
I would say way too many even to accommodate a decent economy that can afford to commute. From the lakes in Menifee to Morgan Hill in south Temecula, to Canyon Hills in Lake Elsinore, to Greer Ranch and Mapleton in Murrieta, and back to our favorite Harveston in Temecula, there are a lot of stucco boxes built during the boom years. Many are vacant, many are for sale, many are being foreclosed on, and they will all loose a large portion of their equity.
