temeculaguy: I was referring to 1982-1985 time period when Temecula was starting to look attractive to people who were willing to make the commute to SD and back each day. There were new housing tracts where you could buy those large 3500 + sq. ft. houses from $195k – $225k.
Back in those days, the only people who wanted to live in RB and Penasquitos were senior citizens who liked the hot weather in the summer. I’m not claiming that I have a crystal ball but logic tells me:
* that with all of the big and medium lenders going bankrupt basically because they loaned too much money to people for houses that weren’t worth anywhere near what they got loans for.
*that with thousands of homes already foreclosed on and presently at REO status
*that with a gazillion more ARM’s are going to reset over the next year or so and the foreclosure list will grow much larger than it already is…………..
Lenders won’t be loaning any more money to borrowers for houses that are ridiculously overpriced just because they’re in CA. The regulators aren’t going to raise the $417k limit for Fannie Mae/Freddie Mac and and the investors are already running for the hills all around the world and are no longer going to want any part of packaged up jumbo CDO’s from the USA. This is going to cause a serious problem for anyone who wants to sell or buy their ridiculously overpriced home when that home is compared to anywhere else in the USA. Again, just because the house is in CA isn’t going to mean squat anymore. Now, I will be the first to admit that I could be dead wrong ………………but every time in my 59 years that I have sat down and analyzed financial situations, (once I have all of the facts and variables) I have been able to predict the final outcome long before it comes to fruition. Let’s just say in this case that I won’t be buying any real estate in any of the bubble markets for several years.
BTW: I believe that those 3500 sq. ft. homes in Temecula will be selling for around $250k – $275k by 2012 (f not before). Time will tell.
