Looking the the list prices of the pending sales from November 2008 and list prices of homes that sold in August 2008 - I am finding that prices on average (about) have been lossing value at the rate of $250 per day. Right now you can buy twice the house for $200,000 (2200 to 2400 square feet) as you could have 1-year ago - when homes on average 1070 square feet went out at $200,000. DataQuick reports that between October 2007 and October 2008 - Moreno Valley home prices on average went down: 49.9% (from a $341,500 median in October 2007 to a $171,000 median in October 2008).
Home prices per square foot now are at number were seeing in 2002. In September 2008 the unemployment of Riverside / San Bernardino County residents was at 9.1% In Sept 2007 the unemplyment percentage was at 6.3% and for all of 2006 at and average of: 4.9%
For all of 2007 there were 34,278 Notices of Default filed in Riverside County for the first 3 quarters of 2008 there have been 44,331 notices filed - compared to 2004 when for the total year only 6187 notices were filed. Needless to say the foreclosure problem is running the local real estate market.
Per my calculatons the largest number of homes in or on the way to foreclosure are homes between 1400 and 1600 square feet in size - a great catagory for rental properties; where the rents should exceed the mortgage payments. However, investment lending is restricted and downpayments are high - this needs to change to stop the bleeding caused by the mass of foreclosure homes and falling home prices.
Beverly A. Bayer, SRA
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