temeculaguy: You may be correct about CA houses carrying a premium……….but what I’m trying to figure out is who is going to finance that premium after the bloodbath of mortgage lenders going bankrupt, investors losing money and a gazillion foreclosures hitting the market that will eventually get sold at big discounts? I just think that the financial community is not going to bend over backwards to finance a repeat of what’s happened in the last eight years in CA and with F.Mac and F.Mae holding that $417k limit on conforming mortgages (which I don’t think is going to go up anytime soon)……..it’s going to put a huge squeeze. I was just reading another post about the auction on the Temecula home that was sold yesterday for $327k. (approx. 2600 sq. ft) so prices are going down and I believe that whomever bought that house for $327k will find out within six months that they paid way too much because the prices will get a lot lower. Only in CA will large numbers of people live 75 miles away from where they work to buy a cheaper home.
