Snail, go back and read my 2 prior posts carefully. Do I believe prices will decrease? Yes. How much? Remains to be seen, but I can tell you that I have access to the MLS and I keep a very close watch on Morgan Hill (not just my street) and can view the outstanding loans on properties listed on the MLS. (I do the same for Temeku Hills, as I own property there). I’m starting to see properties that were listed by empty nesters or by out of state investors with minimal to no loan being pulled off the market. Some of these homes have never been occupied and were cash purchases. It sure looks to me like these are people with sufficient assets to ride out the downturn.
As far as income to support the housing prices, the non-empty nesters on my street have professional jobs in local small businesses, or they are self-employed. We need to remember that most jobs come from small businesses, not large corporations. These neighbors are well paid.
Perhaps I am residing in a microcosm. This was a more expensive area initially and the buyers may have more liquid assets, thus this community may have longer to go before it crashes.
You may have read posts by SD Realtor and sdrealtor. They have responded to numerous questions about why certain areas are falling less than others. Bugs fills in with his appraisal insights. The fact that is pointed out is that it’s all about area. Temecula is just a more desirable area than others here in So. Riverside County so it will fall less than the outlying areas and recover more quickly.
