As I was driving through the streets of Riverside County Yesterday, I noticed one thing. Foreclosures, and a lot of them! All over the place. From prestigious streets in Corona and Norco Hills to the Tree lined streets of Temecula and Murrieta. They all had one thing in common. Dead Lawns, Foreclosure signs, for sale signs lined the streets, and it all remained constant throughout the entire drive.
I have always felt real estate blossomed to fast. Since 1995, Real Estate in Southern California practically quadrupled, while minimum wage increased a mere couple dollars. Home prices skyrocketed while the economy stated relatively flat. In essence I'm not surprised that this sharp decline has happened. Homes that were selling for $600,000-$700,000 a mere year or two ago are now selling for $400,000-$500,000. Homeowners are losing thousands in equity every day. The escalation seems to have just begun!
I don't know where this market will end up, but there is no happy end for Riverside County in Site. Mostly all major areas are experiencing sharp declines due mostly in part to the adjustable rate mortgages driving homeowners into foreclosure. The banks reselling the homes are offering slashed prices, much like a department store, due mostly in-part to them not wanting this inventory, in the multi millions, sitting on their books.
I really hope someone steps in, whether it be the feds lowering rates, or the mortgage lenders creating new programs to help homeowners qualify for homes. To expect someone to make 3 times the amount of all their bills is ridiculous, and the lending standards I believe are in part to blame.
Whatever happens, may it happen soon! Temecula is where I call home. It is a beautiful city, lined with mature trees and master planned communities. I would hate to see all these neighborhoods continue to decline, with dead lawns, squatters, etc. Will someone please step in.