Tuesday, December 16, 2008
What could you do with $373 a day??
What could you do with $373 a day? That buys a lot of Lattes, hookers and golf! It also just happened to be how much the median home lost in value per day over the last year in Riverside County. If you prefer your losses on a monthly basis that's $11,375 per month. If you need the yearly loss (for tax purposes or some such thing), it's $136,500. The median home lost over twice the median yearly family income. The good news is that the median home is getting closer to the long term ratios of price to income. It's still a little above the trend line but we're getting closer. San Berdu is basically there at $185K but Riverside still has another $40k-$50k to go.
The million dollar question is will it stop there? At the current rate of decline Riverside County will hit the long term trend line in about 4 or 5 months. San Berdu is within a month of the line, but I don't see any sign that it's stopping. In fact last month was a big increase in the price declines from the prior month. With all the bad news it's hard to believe the declines will stop in only a few months. Kinda makes you think twice about buying, huh?