Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.
Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?
As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.
My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.
