Moreno Valley is one of the few cities where you can currently buy and be reasonably certain your house won't be worth $100k less next year. MoVal gets a bad rap some of it is deserved and some is just hype. The crime rate in the city is about average for a city of it's size. It's no Beverly Hills but it's also no Compton. It has a few ghetto areas like Edgemont and it has several very nice areas like Moreno Valley Ranch, Rancho Bellago and Sunnymead Ranch. Home prices in MoVal shot up about 300% between 2002 and 2007. By early 2007 many of the newer tracts were selling homes between $500k and $700k (before upgrades). That's absolutely insane for a working class town like MoVal.
In the last 6 months of 2007 the market in MoVal seized up. Nothing was selling. At one point in late 2007 there was a 4 year supply at the rate homes were selling. By spring the prices were falling faster than IndyMac's stock price. Homes now, at least the ones that are selling are going for 50% to 60% off peak prices. They are all the way back to 2001/2002 prices. And guess what, they are selling!Last month they go rid of 322. That's not epic by any means but it sure beats the 50 a month they were selling last fall.
I don't want this to be a "yea, but who wants to live in MoVal thread". Let's just take a look at what you can get in MoVal.
First up is 13531 Somergate. This is one of the Model Homes for the tract. I visited these homes, my grandfather lives very close to them and they were great floorplans on large 1/4 acre lots. But back then they wanted about $500k for them and I just laughed. This home is 3570 sq/ft and has 6 bedrooms and 3.5 baths. It was purchased for $735k back in 2006. That was long before the models closed. They only closed the models about 6 months ago. It's now an REO and it's listed for $315K or $88 s/f. Thats a loss of 58%! This is a beautiful home and if you work in the IE this is probably a solid buy.
Around the corner in anothr new tract is 13388 Triple Crown. This is an equestrian tract so the lots are huge and the area is zoned for horses. The tract was build by Richmond America. I never like these floorplans or any other Richmond floorplans for that matter. I think they just finished the tract and they still might have one or two new homes left. These were also in the High $400s to Low $600s (without upgrades). And trust me these needed upgrades the stock builder grade stuff they came with was junk. This home is 3574 sq/ft and has 5 bedrooms and 3.5 baths. This home was purchased new in Jan 2007 for $510k. At that price I doubt there were many upgrades. It's now bank owned and also listed for $320k. Not as good a deal as the last home but for $320k it's a nice big home on a nice big lot and probably a decent buy at $92 s/f.
If those 2 are still too rich for your blood then how about 16513 Colt Way. This one is down the south end in Moreno Valley Ranch. It's very close to the MoVal RCC Campus. This home is 2605 sq/ft and has 5 bedrooms and 3 bathrooms. It says it has granite counters and from the one pic it looks very nice. The home was purchased new in 2003 for $292k. It sold again in 2006 for $495K. Now it's owned by the bank and the listing price is $205K or $76 s/f. If it sells at that price the loss will be 59%! I think this will go for more than that but I doubt it will fetch over $240k. Even at that price this is probably a reasonable buy and should make a nice starter home for a young family.
These were 3 of the REO's that hit the market today. The city is full of them! It's no surprise that the sales for Riverside County were up last month. With prices hitting 50% to 60% off in MoVal, Perris, Hemet, San Jacinto, Wildomar, Meniffee, Murrieta, and surrounding areas it's easy to see why sales are up. Don't fret, soon enough 50% to 60% off will be coming to a city near you!