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Menifee Home Prices Falling Down

by Steve
5/16/2007 08:57:00 AM

Reduced price homeThe Californian has an article today concerning the value of homes in South West Riverside County falling down compared to a year ago...
Real estate markets have slowed across Southern California for more than a year now, but the slowdown in Riverside and San Bernardino counties was significant, an economist said. That's because a relatively large number of borrowers with low credit scores have been flocking inland in search of less expensive houses, observers said.
Read the full article here...
http://www.nctimes.com/..../4_01_595_15_07.txt

The article reports that the recent sub-prime mortgage fiasco has caused lenders to be more strict against borrowers with risky credit. Whereas in the past, we could sell our homes to people with below-average credit, now we can't, making it tougher to find buyers.

Here in the Menifee Hills development, where I live, I see several homes for sale, including at least one identified as a bank repo. Some of the homes for sale are the same model and from the same builder as mine, and they are listed at prices below than what I was hoping for.

Though, I'm probably one of the lucky ones who bought their home six years ago, when prices were still half of what they are now. If I were to sell, I can afford to drop my price below the others. Those who bought their homes only one or two years ago, don't have that margin.

Have any of you homeowners taken the time to browse the model homes at some of these new developments? My wife and I visited the Pacific Mayfield models off of Evans road about two months ago, and were impressed with the value. For the price they were selling, you got quite a bit of home with a lot of extras thrown in.

I'm not a Realtor, but the way I see it, if you're trying to sell your home, it's these new homes is what you have to compete against.

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5 Comments:

  • New homes are often cheaper than established homes regardless of the economy. However, once you include upgrades and landscaping for the new home, then the overall costs will typically exceed that of the used home.

    With time (o.k, with a lot of time) Menifee will establish itself and those that choose to hold on will reap the rewards once the market thrives as it did a couple of years ago.

    By Anonymous Anonymous, at May 16, 2007 11:22 AM  

  • Menifee has over 500 resell homes for sale right now. This doesn't include the family homes in Sun City. I have a home listed that was worth 550,000 last year, now down to a listing price of $499,900. With hardly any showings. It is hard to compete with the new home builders and the incentives they have to offer. New home builders are dropping their prices also.
    This is a great market if you are buying a home. But be prepared to stay awhile, if you want to make money on your home. This market seems to be a repeat of the early 90's.
    As C21 said in the OCT article, this is not the time to list your house and try to move up or grab your equity. If you are not in a foreclosure situation, sellers should just sit tight and wait for the market to change again.

    By Blogger Holly, at May 16, 2007 5:26 PM  

  • I'm so glad we didn't buy in the Centex at the Lakes development. The whole area down there is an overrated pile. The traffic on the 215 is terrible. It is simply overbuilt. It won't be long until it looks like Moreno Valley and all the vermin start to fill in the rental property that the speculators bought up in hopes of flipping. It will be the South Central LA of the IE...

    By Anonymous Anonymous, at May 17, 2007 6:47 PM  

  • Boo-hoo.........wah,wah,wah..........
    these idiots used thier home equity like an ATM machine! now it's time to pay up and they cant.
    Serves them all right........home ownership is a privledge, not something gauranteed just for showing up!! I'm sure the majority of the crybaby homeowners all have at least 1 or 2 BIG SUV's parked in the driveway, along with their financed toy hauler trailors, and boats.
    Cry yourself a river & build a bridge & get over it. Go back to the OC

    By Anonymous Anonymous, at May 20, 2007 9:09 AM  

  • Boo-Hoo writer needs to use spell check!
    Did I miss the special where you just show up and get a house?
    Any normal person would be upset at falling home prices. Sounds to me like he(she) is crying because they don't have an SUV or a Toy Hauler or a Boat.

    By Anonymous Anonymous, at May 20, 2007 9:53 PM  

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