Here are some sales numbers for Sept in the IE, they appear to be going down in flames....
...........................2007...... 2006.....%Change
Riverside............... 107........... 334...........- 68%
Moreno Valley ..........63 ............167 .......... - 62%
San Bernardino ........51..............176 ...........- 71%
Fontana .................51 .............171............- 70%
Rialto ....................29............. 77..............-62%
Banning/Beaumont... 35.............81..............- 57%
These numbers are BAD and they are even BAD when compared to last month instead of last year. Riverside for instance went from 144 in Aug to 107.
More tidbits.
KB Homes reports their cancellation rate jumped to 58% in the 3rd quarter this year. (ouch!)
In August/Sept approx 70% of the deals in Riverside did not make it through closing due to buyers being unable to secure financing.
6 comments:
Man that has to leave a mark.
Do you have any numbers for Temecula, Murrieta, Lake Elsinore and Menifee?
I pulled the numbers off a realtors blog, he did not have south IE data. I've been looking for it but so far no luck. Those numbers are scary, like 1929 crash scary. Christmas is gonna suck for the kids of the local realtors.
Wow. That is crazy. I've been kind of watching prices in Temecula and some of the homes didn't have huge price reductions like I thought they should have (and of course they weren't selling as a result). I wonder how long it will take for sellers (and realtors) in that area to realize they are going to have to drop prices.
I also stumbled across information about a Liberty Quarry possibly being built in Temecula. Have you heard anything about that?
Yes, the proposed quarry is south of Temecula.
http://libertyquarry.com/
The prices in Temecula are already down quite a bit. That area started to sink over a year ago so it has a year head start on most of the IE. I looked at some nice new Lennar homes in Harveston and some farther out near French Valley airport. They were dealing on those babies. They were down around $130 sq/ft for the bigger ones and they were offering incentives on top of that. I was offered $80k in upgrades if I signed a non conditional contract. The funny thing is the wild range in prices. You can have two identical homes on the same street with little setting either one apart and the can be $200k apart on price. It's just nuts. It will take time but the REOs and the builders will eventually bring the prices down. They have to, no one can afford to buy with traditional lending standards returning. The few that can afford it don't want those homes, they are living in Laguna or some other snobville
Golfer_X
(Dad of 3!)
Hmmm...we would like to be on the coast (maybe Carlsbad) to be close to dh's work. BUT, if homes in Temecula went down into the $300,000's (for a 3000 sq ft home or so) we might consider moving out there to save on money for awhile.
Wow-Harveston is still selling. We looked at homes there years ago. (window shopping only)
3000 sq/ft for $300k is not far off. There are quite a few homes listed that are in the $350k-$400k range and most of them are 2500-3000 sq/ft. It might be worth while making some low-ball offers if your in a hurry. Sooner or later the banks are going to get tired of holding all those homes and will start chopping the prices. I thought they would want them off the books by the end of the year but so far they seem to be holding out. The new tsunami of foreclosures that hit in aug/sept might help them decide to start whacking the prices. It's sure gonna be an interesting winter.
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