Very good price drop for those homes. I am very familiar with those areas in Riverside. The only downside on those homes is the property Taxes(approx 2 percent). But with most new developments this is to be expected.
In Riverside the best areas are Orangecrest, Woodcrest, Canyon Crest, and areas around Victoria. I have found that only a small number of listings are bank repos in these areas as of right now. If you can find a Bank owned home in this area, banks are accepting bids a lot lower than what the asking price is.
My situation has led me to purchase one of the few but better bank owned homes in Orangecrest. 2460sqft, 4 bed 3 bath, 9000sqft lot, pool, spa, 3 car garage, low tax rate (1.15). Comparable comp same house with pool, down the street just sold for $515k in May 2007. At the peak of the market(2005) this comparable home with a pool sold for $560k. Using these numbers, I am purchasing this home at $140k off peak, or a 33% drop.
Everyones situation is different, and if you can afford to wait it out then do it. I wouldn’t suggest purchasing until 2009. Do as I say, not as I do.
