Temecula Real Estate
The Temecula real estate market has been badly hurt by the recent downturn in the real estate sales market. This trend is nationwide with most of the country sharing the pain. Unfortunately, Riverside County and much of the Inland Empire have been dramatically impacted. Prices have dropped in most areas 50%-60%. A disturbing factor in this downturn is the number of loans in default and the number of homes going into foreclosure. The loose lending practices and creative financing gimmicks of the past 5 years have placed many people in jeopardy of losing their homes.
Due to low prices, low interest rates and the federal tax programs the market experienced tremendous activity from the Spring of 2009 through the Spring of 2010. All our listings received multiple offers within the first week on the market. We actually saw prices rise by 10%-15% during this period. The tax incentives expired in the Spring of 2010 and since then we have seen the housing market activity decline dramatically. I do suspect we will give back some of the gains we realized. These real estate cycles very often have double or triple dips. Do not use this as an excuse not to buy. Like any market you can not perfectly time your purchase.
Single family homes start around the $150,000 mark. Investors can expect a small cash flow with 30% down.
These cycles come and go. If you are a Temecula or Murrieta homeowner with equity and thinking of selling, now is not the time. We are near the bottom and you do not want to compete with foreclosures and short sales. If there is no pressing need, I highly recommend you stay put or rent your home out. This cycle will eventually play its self out but it should be many years before we see the market improve dramatically. The experts say you should always have a 10 - 15 year horizon before investing in real estate. If you have no equity and have to sell you might want to conside doing a short sale.
Jeff Schlansky
Office (951) 506-9683
Email: cabest1@verizon.net
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