America’s Post-Subprime Boomtowns

[eclipxe]

Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time. I finally picked up a place I love, but had to get in an offer within an hour of it being listed, and offering 10k over list. I’m still coming in at only 2.8x income, so I’m not too concerned about having to bid up a bit. Like I’ve said in a few other threads, the brown lawns are gone and the people moving in now are folks that can actually afford their mortgages.

Now commercial RE is hurting a bunch out here, but Temecula is well positioned to create a lot of new jobs when the economy improves. I took a drive around the industrial parts of town today and am amazed at the amount of recent, high quality offices. The land is cheap, infrastructure is excellent, good schools, low crime and an educated workforce that can afford to buy in the area on a decent salary. Combine that with high quality office space and the area becomes a good candidate for a strong amount of job growth moving forward (5-10 yrs). City planners aren’t idiots and know the future of the area isn’t in more housing, it’s in jobs.

As far as housing, I’d be very worried if decent places weren’t being picked up quickly and if we had the whole section 8 trend going on out here, but we’ve thankfully avoided that.

[kewp]

[quote=eclipxe]Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time.[/quote]

Personally, I think that’s great news. Even if it means I can never afford to buy a house or condo here in California. I prefer renting to a full on economic collapse.

Hopefully more people will pick up on the fact that foreclosures are *good* and the faster they happen the quicker the housing market will turn around.

[kewp]

[quote=eclipxe]Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time.[/quote]

Personally, I think that’s great news. Even if it means I can never afford to buy a house or condo here in California. I prefer renting to a full on economic collapse.

Hopefully more people will pick up on the fact that foreclosures are *good* and the faster they happen the quicker the housing market will turn around.

[kewp]

[quote=eclipxe]Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time.[/quote]

Personally, I think that’s great news. Even if it means I can never afford to buy a house or condo here in California. I prefer renting to a full on economic collapse.

Hopefully more people will pick up on the fact that foreclosures are *good* and the faster they happen the quicker the housing market will turn around.

[kewp]

[quote=eclipxe]Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time.[/quote]

Personally, I think that’s great news. Even if it means I can never afford to buy a house or condo here in California. I prefer renting to a full on economic collapse.

Hopefully more people will pick up on the fact that foreclosures are *good* and the faster they happen the quicker the housing market will turn around.

[kewp]

[quote=eclipxe]Just to echo what TG has said – I’ve been in the Temecula/Murrieta market for about 8 months now and I’m finally closing escrow next week. Based on all of the doom and gloom on the bubble blogs, I placed low ball offers on over 20 places in hopes of picking up a deal. Outbid. Every. Single. Time.[/quote]

Personally, I think that’s great news. Even if it means I can never afford to buy a house or condo here in California. I prefer renting to a full on economic collapse.

Hopefully more people will pick up on the fact that foreclosures are *good* and the faster they happen the quicker the housing market will turn around.

[patientrenter]

thanks, tg. Sounds like sanity has returned to Temecula. Long may you and the other recent Pigg buyers in Temecula enjoy your new affordable homes. As you say, this is the solution that needs to be applied across the country. A hundred million people, and tens of thousands of our great leaders, will resist like cornered cats. It’ll be fun to watch how it play out in different parts of the county, state, and country.

I live in central Boston now, where prices are about $500 / sq ft at the lowest end. People here are still clueless about the possible massive loss of value that is looming over them. They are convinced that this place is different, just like the English and Londoners especially thought their bubble was made of sterner stuff than the US “sub-prime” version.

[patientrenter]

thanks, tg. Sounds like sanity has returned to Temecula. Long may you and the other recent Pigg buyers in Temecula enjoy your new affordable homes. As you say, this is the solution that needs to be applied across the country. A hundred million people, and tens of thousands of our great leaders, will resist like cornered cats. It’ll be fun to watch how it play out in different parts of the county, state, and country.

I live in central Boston now, where prices are about $500 / sq ft at the lowest end. People here are still clueless about the possible massive loss of value that is looming over them. They are convinced that this place is different, just like the English and Londoners especially thought their bubble was made of sterner stuff than the US “sub-prime” version.

[patientrenter]

thanks, tg. Sounds like sanity has returned to Temecula. Long may you and the other recent Pigg buyers in Temecula enjoy your new affordable homes. As you say, this is the solution that needs to be applied across the country. A hundred million people, and tens of thousands of our great leaders, will resist like cornered cats. It’ll be fun to watch how it play out in different parts of the county, state, and country.

I live in central Boston now, where prices are about $500 / sq ft at the lowest end. People here are still clueless about the possible massive loss of value that is looming over them. They are convinced that this place is different, just like the English and Londoners especially thought their bubble was made of sterner stuff than the US “sub-prime” version.

[patientrenter]

thanks, tg. Sounds like sanity has returned to Temecula. Long may you and the other recent Pigg buyers in Temecula enjoy your new affordable homes. As you say, this is the solution that needs to be applied across the country. A hundred million people, and tens of thousands of our great leaders, will resist like cornered cats. It’ll be fun to watch how it play out in different parts of the county, state, and country.

I live in central Boston now, where prices are about $500 / sq ft at the lowest end. People here are still clueless about the possible massive loss of value that is looming over them. They are convinced that this place is different, just like the English and Londoners especially thought their bubble was made of sterner stuff than the US “sub-prime” version.

[patientrenter]

thanks, tg. Sounds like sanity has returned to Temecula. Long may you and the other recent Pigg buyers in Temecula enjoy your new affordable homes. As you say, this is the solution that needs to be applied across the country. A hundred million people, and tens of thousands of our great leaders, will resist like cornered cats. It’ll be fun to watch how it play out in different parts of the county, state, and country.

I live in central Boston now, where prices are about $500 / sq ft at the lowest end. People here are still clueless about the possible massive loss of value that is looming over them. They are convinced that this place is different, just like the English and Londoners especially thought their bubble was made of sterner stuff than the US “sub-prime” version.

[PKMAN]

I never understood why people working in SD would want to live in Temecula. It has nothing to do with the town but all about the commute. I know a guy who leaves home at 7:30am every workday to make it to work at 9am. He’s a senior manager making about $120K annually. He bought cheap before it got crazy and says he doesn’t mind the 3 hours daily commute. But just look at the numbers:

He spends 2 extra hours per day than average San Diegans on commute. At 120K, he makes about $57/hour. Thus it costs him $15K more per year to commute ($57 x 22 work days per month x 12 months) from Temecula.

He gas up twice a week, where the rest of us do so about every 1.5 weeks. The extra gas he pays + the extra time he spent at the gas station probably add another $3K – $5K annually.

He puts more than 30K miles on his car annually, making leasing virtually impossible and after just 3 years of ownership he car would have 100K+ miles, whereas typical used cars would be around 50K miles or less. The lost residual value + extra monies spent on maintenance and consumable parts (brake pads, tires, etc.) would cost him at least another $5K annually.

In all, I estimate that he’s losing $20K annually by living in Temecula. Worse is that because of the long commute, he has turned into a complete couch potato, and a grouchy one, after work, with very little interaction with his family on weekdays.

So for those of you working in SD but thinking about buying in Temecula to once again take advantage of the much lower home price, be sure to weigh in all the pros and cons before you commit.

[PKMAN]

I never understood why people working in SD would want to live in Temecula. It has nothing to do with the town but all about the commute. I know a guy who leaves home at 7:30am every workday to make it to work at 9am. He’s a senior manager making about $120K annually. He bought cheap before it got crazy and says he doesn’t mind the 3 hours daily commute. But just look at the numbers:

He spends 2 extra hours per day than average San Diegans on commute. At 120K, he makes about $57/hour. Thus it costs him $15K more per year to commute ($57 x 22 work days per month x 12 months) from Temecula.

He gas up twice a week, where the rest of us do so about every 1.5 weeks. The extra gas he pays + the extra time he spent at the gas station probably add another $3K – $5K annually.

He puts more than 30K miles on his car annually, making leasing virtually impossible and after just 3 years of ownership he car would have 100K+ miles, whereas typical used cars would be around 50K miles or less. The lost residual value + extra monies spent on maintenance and consumable parts (brake pads, tires, etc.) would cost him at least another $5K annually.

In all, I estimate that he’s losing $20K annually by living in Temecula. Worse is that because of the long commute, he has turned into a complete couch potato, and a grouchy one, after work, with very little interaction with his family on weekdays.

So for those of you working in SD but thinking about buying in Temecula to once again take advantage of the much lower home price, be sure to weigh in all the pros and cons before you commit.

[PKMAN]

I never understood why people working in SD would want to live in Temecula. It has nothing to do with the town but all about the commute. I know a guy who leaves home at 7:30am every workday to make it to work at 9am. He’s a senior manager making about $120K annually. He bought cheap before it got crazy and says he doesn’t mind the 3 hours daily commute. But just look at the numbers:

He spends 2 extra hours per day than average San Diegans on commute. At 120K, he makes about $57/hour. Thus it costs him $15K more per year to commute ($57 x 22 work days per month x 12 months) from Temecula.

He gas up twice a week, where the rest of us do so about every 1.5 weeks. The extra gas he pays + the extra time he spent at the gas station probably add another $3K – $5K annually.

He puts more than 30K miles on his car annually, making leasing virtually impossible and after just 3 years of ownership he car would have 100K+ miles, whereas typical used cars would be around 50K miles or less. The lost residual value + extra monies spent on maintenance and consumable parts (brake pads, tires, etc.) would cost him at least another $5K annually.

In all, I estimate that he’s losing $20K annually by living in Temecula. Worse is that because of the long commute, he has turned into a complete couch potato, and a grouchy one, after work, with very little interaction with his family on weekdays.

So for those of you working in SD but thinking about buying in Temecula to once again take advantage of the much lower home price, be sure to weigh in all the pros and cons before you commit.

[PKMAN]

I never understood why people working in SD would want to live in Temecula. It has nothing to do with the town but all about the commute. I know a guy who leaves home at 7:30am every workday to make it to work at 9am. He’s a senior manager making about $120K annually. He bought cheap before it got crazy and says he doesn’t mind the 3 hours daily commute. But just look at the numbers:

He spends 2 extra hours per day than average San Diegans on commute. At 120K, he makes about $57/hour. Thus it costs him $15K more per year to commute ($57 x 22 work days per month x 12 months) from Temecula.

He gas up twice a week, where the rest of us do so about every 1.5 weeks. The extra gas he pays + the extra time he spent at the gas station probably add another $3K – $5K annually.

He puts more than 30K miles on his car annually, making leasing virtually impossible and after just 3 years of ownership he car would have 100K+ miles, whereas typical used cars would be around 50K miles or less. The lost residual value + extra monies spent on maintenance and consumable parts (brake pads, tires, etc.) would cost him at least another $5K annually.

In all, I estimate that he’s losing $20K annually by living in Temecula. Worse is that because of the long commute, he has turned into a complete couch potato, and a grouchy one, after work, with very little interaction with his family on weekdays.

So for those of you working in SD but thinking about buying in Temecula to once again take advantage of the much lower home price, be sure to weigh in all the pros and cons before you commit.

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