Recap on Temeclua, Murrieta, French Valley, etc.?

[5yes]

Hi arches, lots of people love Redhawk and as I am new to the area I don’t have much to say that couldn’t be topped in a witty and inspiring way by temeculaguy or some other posters, but I did want to know if you are interested in repos or exclusively looking for a new home. We are also looking locally and my husband has been dying to buy – I posted about it in another thread and just backed out at the last minute of a repo deal, 2800 sq/ft built in 2001 on the Temecula Murrieta border in a very nice neighborhood for 305,000. That was a great deal but still too much in my opinion, I am going to keep waiting, at least until the spring is the deal I made with my husband. Rehawk is still more expensive than where we were looking but the Wolf Creek area is very crowded and I like east down Temecula Parkway just a little, like the Morgan Hill or Crowne Hill areas. We go looking quite often so if you are looking too lets keep each other up on good deals. Good luck, I know we are going to need it to find a house that is a good enough deal to ride out the rest of the downturn in without kicking ourselves and posting bitterly in a couple of years.

[Jumby]

From what I read on this site…$110 per sq ft seems very attainable in this area now days….When was the last time prices were this low for this area? 2002?

[Jumby]

From what I read on this site…$110 per sq ft seems very attainable in this area now days….When was the last time prices were this low for this area? 2002?

[Jumby]

From what I read on this site…$110 per sq ft seems very attainable in this area now days….When was the last time prices were this low for this area? 2002?

[Anonymous]

5yes, Jumby, thanks for your replies.
I am open to repos and am not excusively looking for brand new homes. I guess the bottom line is that we are all on the same boat in the sense that we want to get a deal that is good enough to make it through the downturn. Yes, $305k for 2800 sq ft does sond like a great deal (comes to $108 per sq ft).

I think there are two critical questions here:
1. How long will the downturn last and how low will the prices go? I may be repeating this from my previous post, but more and more people are now thinking that the downturn won’t last as long as previously thought. With low interest rates and mortgage reforms, it may start coming back as soon as early year.

2. Assuming that $100 per sq ft is attainable in the current market, how much should be the premium for a home that has the following attributes: brand new construction, golf course adjacent to backyard, upgraded flooring, cabinets and granite?

[Anonymous]

5yes, Jumby, thanks for your replies.
I am open to repos and am not excusively looking for brand new homes. I guess the bottom line is that we are all on the same boat in the sense that we want to get a deal that is good enough to make it through the downturn. Yes, $305k for 2800 sq ft does sond like a great deal (comes to $108 per sq ft).

I think there are two critical questions here:
1. How long will the downturn last and how low will the prices go? I may be repeating this from my previous post, but more and more people are now thinking that the downturn won’t last as long as previously thought. With low interest rates and mortgage reforms, it may start coming back as soon as early year.

2. Assuming that $100 per sq ft is attainable in the current market, how much should be the premium for a home that has the following attributes: brand new construction, golf course adjacent to backyard, upgraded flooring, cabinets and granite?

[Anonymous]

5yes, Jumby, thanks for your replies.
I am open to repos and am not excusively looking for brand new homes. I guess the bottom line is that we are all on the same boat in the sense that we want to get a deal that is good enough to make it through the downturn. Yes, $305k for 2800 sq ft does sond like a great deal (comes to $108 per sq ft).

I think there are two critical questions here:
1. How long will the downturn last and how low will the prices go? I may be repeating this from my previous post, but more and more people are now thinking that the downturn won’t last as long as previously thought. With low interest rates and mortgage reforms, it may start coming back as soon as early year.

2. Assuming that $100 per sq ft is attainable in the current market, how much should be the premium for a home that has the following attributes: brand new construction, golf course adjacent to backyard, upgraded flooring, cabinets and granite?

[bearvine]

There are a number of ways to look at this in evaluating the process, many believe the floor will be around 2010, but interest rates may be considerably higher after the election, and it will be harder to qualify. Do not figure on an upswing until at least 2012, more like later than that.

Right now, without negotiating, you can get a 3000+ home in the Morgan Hill/Redhawk area with upgrades on the inside, some hardscape, but a dead lawn for $120 sq ft.

On Sattui street in Morgan Hill, an old Shea neighborhood, which were nice homes and I think a really nice area overall, there are 5 homes in the $130 per sq ft range, and it is only a matter of time for them to start throwing each other under the bus and lowering their prices.

If one really wants to buy right now, just wait till the holidays. If you work it, you’ll find someone desperate in Dec that will drop another 10-20% off there asking price. Target someone in Redhawk, Paseo Del Sol, that bought in the late 90’s early 2000 in the 2’s or less. They’ll still be in the money, and happy to get out.

[bearvine]

There are a number of ways to look at this in evaluating the process, many believe the floor will be around 2010, but interest rates may be considerably higher after the election, and it will be harder to qualify. Do not figure on an upswing until at least 2012, more like later than that.

Right now, without negotiating, you can get a 3000+ home in the Morgan Hill/Redhawk area with upgrades on the inside, some hardscape, but a dead lawn for $120 sq ft.

On Sattui street in Morgan Hill, an old Shea neighborhood, which were nice homes and I think a really nice area overall, there are 5 homes in the $130 per sq ft range, and it is only a matter of time for them to start throwing each other under the bus and lowering their prices.

If one really wants to buy right now, just wait till the holidays. If you work it, you’ll find someone desperate in Dec that will drop another 10-20% off there asking price. Target someone in Redhawk, Paseo Del Sol, that bought in the late 90’s early 2000 in the 2’s or less. They’ll still be in the money, and happy to get out.

[bearvine]

There are a number of ways to look at this in evaluating the process, many believe the floor will be around 2010, but interest rates may be considerably higher after the election, and it will be harder to qualify. Do not figure on an upswing until at least 2012, more like later than that.

Right now, without negotiating, you can get a 3000+ home in the Morgan Hill/Redhawk area with upgrades on the inside, some hardscape, but a dead lawn for $120 sq ft.

On Sattui street in Morgan Hill, an old Shea neighborhood, which were nice homes and I think a really nice area overall, there are 5 homes in the $130 per sq ft range, and it is only a matter of time for them to start throwing each other under the bus and lowering their prices.

If one really wants to buy right now, just wait till the holidays. If you work it, you’ll find someone desperate in Dec that will drop another 10-20% off there asking price. Target someone in Redhawk, Paseo Del Sol, that bought in the late 90’s early 2000 in the 2’s or less. They’ll still be in the money, and happy to get out.

[hipmatt]

Arches.. ohh man.. there will be nothing even close to resembling a bottoming up here in the Temecula/Murrieta area for a while. The party has just started. Have you seen the inventory? This is only the beginning, a 10 year UBER RE boom won’t correct in 18 months. Historically it takes about 5 years, due to the magnitude of this bubble, it may take more.

The lower interest rates really aren’t helping RE at all. Inventory is still climbing and interest on a 30 year fixed loan(the “least” risky) aren’t dropping, if anything they are rising to help compensate the foreigners who are loosing money by loaning us all this cash while our dollar looses its value.

Not one home has burnt down in Temecula, and in another thread I took away the conclusion that the San Diego county fires will not help RE values, if anything, may make them worse.

Mortgage reform isn’t as powerful as it sounds. Even a mortgage that has been re-fied at a discount rate is still too much for the home owners. The fact that they now have little, no, or even negative equity is likely to have them hand over the keys more than a payment they can barely afford. And now since we will not be taxing them on the difference if they have a short sale, it is encouraging them to sell.

There are a lot of nice rentals in this area. Good luck!

[hipmatt]

Arches.. ohh man.. there will be nothing even close to resembling a bottoming up here in the Temecula/Murrieta area for a while. The party has just started. Have you seen the inventory? This is only the beginning, a 10 year UBER RE boom won’t correct in 18 months. Historically it takes about 5 years, due to the magnitude of this bubble, it may take more.

The lower interest rates really aren’t helping RE at all. Inventory is still climbing and interest on a 30 year fixed loan(the “least” risky) aren’t dropping, if anything they are rising to help compensate the foreigners who are loosing money by loaning us all this cash while our dollar looses its value.

Not one home has burnt down in Temecula, and in another thread I took away the conclusion that the San Diego county fires will not help RE values, if anything, may make them worse.

Mortgage reform isn’t as powerful as it sounds. Even a mortgage that has been re-fied at a discount rate is still too much for the home owners. The fact that they now have little, no, or even negative equity is likely to have them hand over the keys more than a payment they can barely afford. And now since we will not be taxing them on the difference if they have a short sale, it is encouraging them to sell.

There are a lot of nice rentals in this area. Good luck!

[hipmatt]

Arches.. ohh man.. there will be nothing even close to resembling a bottoming up here in the Temecula/Murrieta area for a while. The party has just started. Have you seen the inventory? This is only the beginning, a 10 year UBER RE boom won’t correct in 18 months. Historically it takes about 5 years, due to the magnitude of this bubble, it may take more.

The lower interest rates really aren’t helping RE at all. Inventory is still climbing and interest on a 30 year fixed loan(the “least” risky) aren’t dropping, if anything they are rising to help compensate the foreigners who are loosing money by loaning us all this cash while our dollar looses its value.

Not one home has burnt down in Temecula, and in another thread I took away the conclusion that the San Diego county fires will not help RE values, if anything, may make them worse.

Mortgage reform isn’t as powerful as it sounds. Even a mortgage that has been re-fied at a discount rate is still too much for the home owners. The fact that they now have little, no, or even negative equity is likely to have them hand over the keys more than a payment they can barely afford. And now since we will not be taxing them on the difference if they have a short sale, it is encouraging them to sell.

There are a lot of nice rentals in this area. Good luck!

[Anonymous]

hipmatt, bearvine, thanks for your posts. I had decided upon waiting till december, and can wait longer if I can get better deals.
One more thing to consider would be property tax rates — I came to know that Morgan hill is 1.9% while Redhawk (or parts of it) are 1.4%. That .5% would save about $2000 per year in taxes for a $400k home.

[Anonymous]

hipmatt, bearvine, thanks for your posts. I had decided upon waiting till december, and can wait longer if I can get better deals.
One more thing to consider would be property tax rates — I came to know that Morgan hill is 1.9% while Redhawk (or parts of it) are 1.4%. That .5% would save about $2000 per year in taxes for a $400k home.

[Author]

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