Menifee Real Estate

The Menifee 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 somewhat, but sales are off dramatically. Historically, it takes a while for prices to reflect what is truely happening in the market. When you check the MLS you will find a large number of active, canceled and expired listings. There are very few closed sales or homes in escrow.

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. A large number of foreclosures will have a depressing affect on home prices.

Fueling the problem is a lack of home buyers. Many buyers are sitting on the sidelines waiting for prices to go down. Interest rates are very low but the lenders have tightened their requirements and knocked out the marginal buyers who were able to get financing in years past. Another problem is inventory is way up. People with equity are trying to get out before it gets worse.

Finally, new home builders in Menifee have been aware of the declines and have been trying to reduce their inventories. They offer buyers very low prices, very attractive loan packages and numerous upgrades for free. They have place individual sellers at a great disadvantage.

These cycles come and go. If you are a Menifee 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. 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.