Riverside's home prices fall faster, sales slowdown worsens
By: CHRIS BAGLEY -- staff writer | ∞
The only thing slower than molasses in January, it seems, is Riverside County's home-sales market in January 2008.
Just 1,939 escrows closed last month, the lowest number since January 1997, when the county's population was roughly half as large as it is now, according to a real estate research company.
Prices continued to plummet, too, with the median sale price falling to $331,500, its lowest level since March 2004, according to the monthly report by DataQuick Information Systems.
Economists and many real estate agents interviewed in recent weeks have blamed tighter lending standards and a rising flood of foreclosed houses onto the local market. Agents have also blamed would-be buyers' expectations that prices will remain in free-fall for another few months.
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Stan wrote on Feb 13, 2008 12:27 PM:That's a new one, real estate agents blaming buyers for refusing to buy into the housing pyramid scheme. Buyers aren't to blame. Greedy realtors, appraisers, lenders, and speculators are to blame for the current situation. Buyers on the sidelines are simply smart, prudent consumers refusing to be screwed by a collapsing price bubble.
Irving wrote on Feb 13, 2008 10:51 PM: Unfortunately, the real truth is that homes in Riverside, Orange and San Diego counties have been extremely overpriced and overvalued for years. The only way most income earners in these areas have been able afford to buy and live in homes at these absurd prices, is with "creative" and/or "exotic" loans. The party is now over, and these loose and creative loans have all but disappeared. The result? Prices will now have to fall back to levels that once again coincide with conventional fixed mortgages and local wages. This will be extremely painful for all involved, but we in California can no longer avoid the reality of economic fundamentals any longer.
scott wrote on Feb 14, 2008 1:15 PM:Agree with both Stan and Irving, but would add there were a lot of naive and ignorant home buyers believing they could play the appreciation game against no down and rising interest rates. Consumers need to learn how to control spending, save money and seek sensible financing. California will always be overpriced, overtaxed and over-regulated thanks to its incompetent legislators (Boxer, Feinstein and State Senate). Californias are discovering there are better places without the climate and are moving; then watch prices stagnate after they fall. Katie bar the door!
JoJo wrote on Feb 14, 2008 4:34 PM:AAAHhhhhhh,
And so the correction begins!
Tim wrote on Mar 24, 2008 3:49 PM:Don't trust those real estate agents with their sweet talk about "missed opportunities" to buy a house right now. The way I see it, no matter what the current economic situation, it's always a good time to buy from their point of view. Afterall, they are merely salespeople.
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