Temecula and Murietta got nailed the last time around, partly because they were more of a bedroom community at that time. Now they’ve got a lot more businesses in town, and they’re starting to come into their own more as a population center. I’d just about compare Temecula to Escondido, only newer and nicer. I’m thinking that this time around the declines won’t be as bad compared to other areas as last time, but they’ll still be significant.
I think you might have a shot at getting that $550k (peak) house at $350,000 if you can hold out long enough. No matter what, time is on your side.
