What came First - the Chicken or the Egg?

Real Estate Agent with Rancon Real Estate

Wow! This has been a wild time here in Southern California. We have seen real estate hit magnificent highs and plummet to about half of their top values. We have more than our share of "bank owned" homes in our market---in fact, they make up most of our market right now.

Here in Temecula/Murrieta - one hour north of San Diego - we are a town - city - with a middle to upper-middle population. When I talk to people, I have realized that these aren't the "dead beats" that were caught in "sub-prime" loans. There are basically two stories here. First there are the home owners that used their home as a "Bank Account"  that allowed them to have "extras"----boats, pools, hardscape, RVs---that their income didn't provide for. One day they they went to the bank and realized that they were overdrawn and they had to pay back the "overdraft". The other half just have had their income cut -- many because they were in some aspect of the real estate business - or have lost jobs! These are good, good people - smart people that can't can't make house payments, or any other payments, without a paycheck.

Normally in this kind of situation, people just sell their homes, and move to another area where they can find jobs---but this is not normal times! Homeowners are upside-down in their homes and businesses are cutting back across the board. But this too will pass and someday all of this will seem like a bad memory that has changed all of us.


Comments (1)

Chris Carter
eVolV Equity - Roseville, CA

I'm in the Sacramento region and OH MAN, what a disaster. I'm a lender and have never known so little as the rules change almost daily. I have a pipeline full of qualified clients, most of which just sit on the sidelines as their offers get trumped by cash buyers. Meanwhile, we wait for "Hope For Homeowners" & the rest of the promised help to arrive.

I know I'm here to help get clients into new homes and keep clients in their esisting homes.

Feel free to contact me anytime.

Oct 31, 2008 11:11 AM