Market Report for Temecula's Meadowview, August 2010
Here are my market reports since March 2010 through now for sales close in August 2010 in the Meadowview community, with analysis to follow:
The market for homes for sale in the Meadowview Community of Temecula appears NOT to reflect what the overall housing market has done:
- In May, there were lots of Pending home sales as buyers were looking to take advantage of the Federal Homebuyer tax credit. Our personal experience with our brokerage's many buyers in that Spring 2010 time frame, though, was that the clients saw the value of purchasing a home at monthly costs lower than renting. So for our clients, the Federal Tax Credit was just an added bonus to doing what they already thought was the smart financial move for them. In contrast, for Meadowview, there was no clear spike in purchase activity, trying to get into contract by April 30 or close by June 30 (the original Fed Tax credit deadline). That spike should have shown in Pendings by April and May
- The higher number of Pendings in the market surrounding Meadowview over these months relates to Short Sale activity, where waiting for the bank that holds the seller's note to approve a sale price at less than the seller owes them takes from 2 to 6 months to play out. That means there were a lot of Temecula homes that went Pending in April and showing as Pending in May, June, July, and August when they finally closed, keeping the Pending figure for Temecula homes for sale in Temecula looking like there are lots of homes going into escrow, when in fact, they are sitting there waiting for short sale approval. The Meadowview market has not done that.
- It therefore appears the Meadowview market was not bought into by people as much at risk of having the home later go to short sale. This is perhaps due to the somewhat higher price point of buying in Meadowview, and its distinctive appeal of single-lot-developed homes, many in the ranch style. The markets in Temecula that, unlike Meadowview, experienced far more Short Sales are more tracts with master-developed floorplans and mass production on similar-sized lots.
- Timing of a buyer's offer on short sale homes in Meadowview in Temecula is not as important. In Short Sales, the home stays on the market while the buyer with the first accepted offer gets anxious to be moved into a new home, and in fact the seller's bank lets pass the short sale approval deadline in the buyer's Short Sale Addendum. This frees that buyer to move on and to put in offers on other homes that might allow for a quicker move-in. At that point, the home is much closer to an approval of the short sale, and the buyer who comes into the market at this later time has a good chance to get their offer to the front of the line and buy a short sale home in the market elsewhere in Temecula while waiting much less than that original buyer would have had to wait. In contrast, the Meadowview market appears less rapid in turnover (which the buyer should keep in mind will happen when he turns around to sell at some later point). The benefit is long-term neighbors and typically a lot of pride of ownership in these homes; the downside is perhaps a longer wait time on the market when the homeowner is ready to sell.
We are helping our clients in this market, trying to make the wait as little as possible to get into a Meadowview or other Temecula market home. We want our clients to consider both the ease and speed of getting into the home, and the ease or difficulty of selling at some point down the road. Analyzing the market report for Meadowview or a surrounding area can give you the knowledge so you are prepared ahead of time in making these decisions.
You can search Temecula homes for sale at our website. Or you can have us set up an automated search through the MLS that emails you Meadowview homes in Temecula - or any other geographically-determined area here - as soon as they hit the market. We would be happy to help.
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