Temecula's Real Estate Blog

Where Are The Great “Temecula” Real Estate Deals

Real estate is down as much as 52% in some areas of Temeula, but it will go back up.

I get asked this everyday. Everybody wants to steal a house. It is amazing how short our memories are. I was doing some research on market activity for an investor client of mine and I found out some interesting information.

Properties in the city of Temecula are generally selling for 54% of what they sold for in 2006. Murrieta is at 52%, Wildomar is about 48% and Lake Elsinore is about 44%.

For example, I just sold a house here in Temecula in the Wolf Creek Community that is a 2900 ft single story. I just sold this property for 330k. This house was built in 2006 and sold for $549,500. That is a huge discount! Not everyone agrees on what is going on, not even the government nor economists. I personally see the markets in 2009 and going into 2010 as one big ‘half price’ sale.

However, with the lack of homes for sale, I would expect that prices are likely to climb. We have been hearing for months that the banks are holding on to the inventory, or that they aren’t — who knows what story to believe?

Yet, with the current supply and demand, the smaller, tract-style homes seem to get multiple offers and sell 3 to 5% above the asking price. The exception is the higher end homes, that are selling north of the 500k range. On the homes where the loan is considered a jumbo, we are experiencing a distinct lack of financing.

The lack of available loans on these types of homes is keeping the prices down and inventory high. When someone wants to buy a $1,000,000 property, they will need 20% down or more and have to fully document their income. That pretty much eliminates everyone who is self employed and uses their tax deductions to the fullest. There are not that many people out there that can prove the $20,000 to $30,000 per month income needed for that type of loan.

Naturally, with such a small buyer pool, the inventory continues to climb and prices continue to fall.  As I said before, it’s one big “HALF PRICE SALE”. No one wants to be sitting around in a couple years, saying “I wish I’d bought back then”.