The Temecula real estate market  has been hurt badly 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 55%.

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.

As of November 2009 the market has become very active again. There has been a slight rise in prices due to lack of inventory and strong competition for homes. The market mainly consists of foreclosures and short sales. Most listed properties have multiple offers on them. We do a lot of short sales and all our properties have numerous offers.

These cycles come and go. If you are a Temecula homeowner with a strong need to sell, my advice is to sell as quickly as you can and not wait for the market to drop further. There is potential for another wave of foreclosures to depress the market further. 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 years before we see the market improve dramatically.

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