Is It Just My Neighborhood? (Los Angeles, Riverside: short sale, foreclosures, renter)

[antredd]

I read in the Californian today that the IE home prices have dropped 52% from last year, that's even worse than the 44% drop in home value after the Great Depression.

Every time a foreclosed home goes up for auction in my Menifee neighborhood, investors or buyers are snatching them up now. I live in a very quiet neighborhood with large homes that are less than 5 years old. But also, I have seen in the last three months, homes in my neighborhood that couldn't be sold by the owner, are being sold by the bank for very low prices, and within 30 days the new homeowner or renter is in that home.

Now it appears that none of these homes in my neighborhood are being empty longer than 3-6 months. I guess I should be thankful that people are starting to buy and that the many empty homes are getting bought. Is this happening in your neighborhood?

[tkdmom]

I live in Menifee too, but there are no foreclosures here in my neighborhood, which I'm so thankful for. My neighborhood is a little bit older than yours, and most of the neighbors bought low, only a few families bought when the prices were high, that could be why.

[eclipxe]

Originally Posted by antredd

I read in the Californian today that the IE home prices have dropped 52% from last year, that's even worse than the 44% drop in home value after the Great Depression.

Every time a foreclosed home goes up for auction in my Menifee neighborhood, investors or buyers are snatching them up now. I live in a very quiet neighborhood with large homes that are less than 5 years old. But also, I have seen in the last three months, homes in my neighborhood that couldn't be sold by the owner, are being sold by the bank for very low prices, and within 30 days the new homeowner or renter is in that home.

Now it appears that none of these homes in my neighborhood are being empty longer than 3-6 months. I guess I should be thankful that people are starting to buy and that the many empty homes are getting bought. Is this happening in your neighborhood?

I've noticed the same thing in Murrieta and Temecula. Been in the market 6 months and every decent place (not short sale) that is priced in line with the market is either sold within a few days of listing or has multiple offers immediately. Not too many vacant homes and the brown lawns are pretty much gone.

[antredd]

Originally Posted by tkdmom

I live in Menifee too, but there are no foreclosures here in my neighborhood, which I'm so thankful for. My neighborhood is a little bit older than yours, and most of the neighbors bought low, only a few families bought when the prices were high, that could be why.

Do you know how much the homes in your neighborhood have depreciated? There is a house on my street has been listed for 189,900, when the homes in my neigbhorhood peeked at 600,000 September 2007. The traffic is very high too, and I won't be surprised if that house has gotten mutliple offers by now.

[JohnG72]

Theres a few things going on and part of it is seen on this forum.

The largest factor is that there was a moratorium on foreclosures. Combine this with banks and mortgage companies waiting to see what the stimulus package was going to provide and you have a situation where supply was therefore artificially restricted for a finite period of time. So you even have some cases where people are bidding over listing price.

You also apparently have some investors willing to take the plunge right now. I was absolutely shocked to find this out. But it is happening. There is an absolutely awful area of North Hollywood where flippers bought three properties recently for around $300K each(waaaaaayyyyyy overpaid). I saw the listing for a completed property that they had done(I didn't know it at the time) and it was gorgeous. Totally remodled home built in 1967. Very modern looking and very nice exterior. Pool and jacuzzi. Listed at $400K. I drove over to the house at about 7am. I was appalled. This SFR neighborhood had almost no parking anywhere. This is because there are about 10 people living in each house. Most houses had bars on the windows. Rusted out cars all over the place. I ran, fled, and got out of there as quickly as possible. As nice as the house is, these bozo's are lucky if they get $280k for this house right now. But some how, some way, someone badly overestimated the current housing market. So there are investors out there I guess, even for areas of the inland empire where people have zero reasonable chance of flipping properties. Maybe the television shows have created remarkably bad expectations.

The other factor is that there are a sizable amount of people that see now as their only time to get into a house in the greater Los Angeles area. Just check out my thread in the Los Angeles section. Really people just doing all sorts of goofy stuff

[tkdmom]

Originally Posted by antredd

Do you know how much the homes in your neighborhood have depreciated? There is a house on my street has been listed for 189,900, when the homes in my neigbhorhood peeked at 600,000 September 2007. The traffic is very high too, and I won't be surprised if that house has gotten mutliple offers by now.

They have depreciated A LOT ! My peek price was around $475, but I only paid $130, missed my window.

I think the fair market price in my neighborhood now is around $165k or less.

[antredd]

Originally Posted by tkdmom

They have depreciated A LOT ! My peek price was around $475, but I only paid $130, missed my window.

I think the fair market price in my neighborhood now is around $165k or less.

Good for you when you purchased your house. Sometimes I tell my wife that maybe we should have stayed in our Riverside house before we sold it. We paid the low 140s for it, and even though we truely outgrew that house, the payment was half of what we pay now.

[PinkString]

Wow, the prices have really dropped there too just like here in Las Vegas. I have family in Moreno Valley and Riverside. I know my sister's home and property was valued at almost $400,000 just a few years ago. And she lives in downtown Riverside by the railroad tracks, not far from the Mission Inn. Now it's almost back to what she paid for it, in the $130's.
Which means my Moms house must have really taken a hit too.
I wonder if prices will ever rebound and go up again. Probably not as inflated as before though.

[antredd]

Originally Posted by PinkString

Wow, the prices have really dropped there too just like here in Las Vegas. I have family in Moreno Valley and Riverside. I know my sister's home and property was valued at almost $400,000 just a few years ago. And she lives in downtown Riverside by the railroad tracks, not far from the Mission Inn. Now it's almost back to what she paid for it, in the $130's.
Which means my Moms house must have really taken a hit too.
I wonder if prices will ever rebound and go up again. Probably not as inflated as before though.

I think the prices are going to rebound, but not like that sky rocketed in the early 2000s.

[Ultrarunner]

You're not alone... it's all over CA...

I can show you homes that sold for 440k and the bank hasn't been able to sell for 160k... although lots of lookers... mostly young, nicely dressed driving very nice cars...