Yup, the people buying now in Temecula are people who are either unaware of the direction prices are going, or who cannot wait for whatever reason. They see those properties as great deals, and they are, compared to the peak. But this winter, and fall/winter of ’09, prices will be lower. Many of the people buying then will be different – more experienced investors, I would think, with more cash. However, even if there are still a lot of people making offers, I think prices will be low enough that you can make an offer better than theirs and still be saving compared to the current prices. If I see an awesome Fairways house on the course for $250k, I won’t mind offering substantially more than asking.
