This week I’ll be reviewing the condominium and duet/half-plex market in the six urban areas of Chico as reported in the local Sierra North Valley Multiple Listing Service. Currently there are forty nine properties currently available for sale including two that are bank owned and an additional seven offered on a short sale basis or approximately 18% of the current inventory. The average asking price for these active properties is $171,851 with a median asking price of $168,000 and an average day on the market (DOM) of one hundred forty one days. In looking back one year from April 30^th 2008 till April 30^th 2009 there were a total of fifty four condo/duet/half-plex properties sold, which going by the current rate of absorption, would give the Chico market approximately eleven month supply of this type of property.

During the first quarter of 2009 there were a total of 7 homes sold in this category with an average DOM of eighty eight days. The average selling price for this quarter was $160,839 with a median selling price of $160,000. Sellers during this timeframe received a combined average of 86% of their original asking price. In comparison the first quarter of 2008 had a total of six units sold after an average DOM of seventy nine-the average selling price at that time was $174,208 with a median selling price of $144,375. Sellers last year received approximately 87% of their original asking price. In looking at both figures this segment has decreased in average selling price this year by approximately 7% from last year and increased by approximately 9% on the median selling price.

Tammy Waller Aviles

Broker/Owner

Realty Executives Waller Real Estate

There’s no question that America is in a tight spot. It’s not pretty out there. Most days we still get recession related bad news. But tune out the negative chatter for a moment and listen up. All our recent financial and housing crises have in fact led to opportunities for smart investors who want to get rich the right way. Real estate remains the original get rich slow scheme. Visit a casino if you want to gamble.

The reality is our economic collapses have actually created an exceptionally favorable environment for real estate. Some get the elevator, some the shaft! Interest rates are low, property values are depressed, and real estate is still a great long term investment. It’s a smart player that knows where he/she’s at in the game. Doing it the wrong way is what put us in our current jackpot. The right way will lead to great financial gains over the long term. I’ve been doing this since 1963. Nothing’s changed in almost half a century.

You might call this a class in “Real Estate 101”. First of all, you need a nest egg. If you haven’t already got one, save up. Cut every possible expense you can- as I’ve said many times, there’s no free lunch- to build up your savings. No pain, no gain. You will need some cash to close the deal. We got a “G.I.” (generous in-law!) loan for our first house.

Your credit rating must be in order. A low FICO score can cost you a bundle in higher loan costs, or even prevent you from getting a loan at all. The best deals are available to investors who have both cash and sparkling credit.

Buy only properties in the path of progress, where pride of ownership prevails. Those areas will continue to improve in desirability. Call your Realtor for the latest offerings. Look in areas where people really want to live. People make the values. Rentals in Chico are in greater demand than ever.

Look for underachieving properties that are ‘tired’ with deferred maintenance needed. You should be looking for properties that are not already in ‘silver platter’ condition. Why? Because the value added appreciation has already been taken by the current owner. You’re going to create your own new value. Remember: you want properties that need “TLC”- tons of loose cash!

After refurbishing, you will attract tenants who might not have wanted to live there before. And now the rent can be increased because it’s a more attractive place. At a certain point, you can afford to turn it over to professional management, let them deal with your tenants and maintenance while you sit back and enjoy appreciation, tax benefits, and the fruits of your labor.

Successful real estate investors tend to be diligent, conscientious, hard working individuals. They have vision, commitment, personal skills, and resources. You too can acquire unique properties with that all-important value-added potential often missed by others. Take advantage of this buyer’s market. Today’s depressed prices have nowhere to go but up over the long term. Find that diamond in the rough. Be a winner!

Ken owns Ken DuVall & Associates, REALTORS at 3rd Ave. & Mangrove in Chico. Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year. See Chico MLS listings at www.KenDuVall.com and call Ken at 345-3700 for all your real estate needs. Free consulting.

New Appraisal Law Expected to Further Reduce Home Values Across America…Beginning May 1st!

Make no mistake about it, this change is not set to protect Mr. and Mrs. Homeowner, rather it’s set to protect the banks. A major change is set to affect Homeowners across the United States, beginning May 1st. All appraisals will be ordered directly through lenders, to “enhance the integrity of and confidence in the national housing system”. Fannie Mae and Freddie Mac have agreed to adopt the appraisal policies contained in the Home Valuation Code of Conduct (HVCC), which can be found here:

http://www.freddiemac.com/singlefamily/home_valuation.html

For all conventional 1-4 family mortgage loan applications dated on or after May 1, 2009, Fannie and Freddie will require lenders to represent and warrant that appraisals for single family homes conform to the HVCC’s Code. Government loans such as FHA and VA are excluded.

The Code specifically prohibits banks from relying on an appraisal where the borrower, broker or loan production staff selected, retained or compensated the appraiser.

The main reason for the change comes from finger pointing that mortgage brokers like myself “swayed the opinion of values” with “pocket appraisers” by bloating home values to simply “get the deal done”. This is another classic example of how a few bad apples can spoil the bunch. I for one never pushed appraisers to make a falsified opinion of value on a home. By letting the appraiser do her/his job independently, I could feel confident that the appraiser chosen would be able to support the opinion of value placed on the home with good/independent information, had the lender ever questioned the value placed on the subject property.

I have received several emails and phone calls with lenders stating that the following changes will take place on Friday, May 1^st and will apply to all loans with an application date of May 1, 2009 or later.

• All appraisals will be ordered by the Lender via their approved Appraisal Management Companies (AMC’s) and will be prepared in the name of the Lender.
• Borrowers are required to provide credit card information during the application process and appraisal fee will be charged to the Borrower.
• Brokers and Loan Officers are NOT permitted to pay for the appraisal.
• Brokers and Loan Officers are NOT permitted to have any contact with the appraisers (all communications are facilitated through the Lender or AMC).

Many key real estate professionals, including myself, are predicting that property values will continue to go down further and customer service will worsen with these new changes for the following reasons:

1.) As highly experienced, quality appraisers are asked to work twice as hard for half of what they were initially making on an appraisal, few will “suck it up” and stay in the same line of work. This will inadvertently lead to inexperienced, new appraisers providing weaker appraisals and solid information.

2.) Having a good understanding of the local real estate market is very important with creating an opinion of value. What happens if a lender orders an appraisal through a national company and sends an appraiser from Sacramento to appraise your home in Chico because that is the closest appraiser within their network? Or, they will do the job for less or a local appraiser? How familiar is that appraiser with the local market and how will it affect the opinion of value on your home?

3.) Some major lenders…like Wells Fargo (Rels Valuation) , OWN THEIR OWN AMC! How fair is that? Just as a few bad apples were spoiling the bunch for brokers with skewing the opinions of value…lenders can now essentially do the same thing and influence the opinion of value in their favor! In a declining market, lenders can essentially say, “Sorry Mr. Johnson, but we believe your home is only worth $200,000″ to gain a better equity position on the property, when in reality an outside educated appraiser would give a fair opinion of value of $250,000 to the property.

4.) HVCC specifically prohibits banks from relying on an appraisal where the borrower, broker or loan production staff selected, retained or compensated the appraiser.  This is what is known as “STOVE PIPING”, whereby, one entity cannot have any communication with another entity involved in the transaction. In my opinion, where transparency ceases to exist, corruption can breed.

5.) Even though the borrower paid for the appraisal with their own credit card and is entitled to a copy of the appraisal, the appraisal is still the property of the lender. If a borrower/broker chooses to take the loan elsewhere for better terms or a discrepancy in the opinion of value, do you really think the lender/AMC will “release the appraisal” to a different lender? Each lender will have their own internal policies on the issue. Personally, I think it isn’t fair for a borrower to have to fork over an additional $300-400 for a new appraisal if needed. Isn’t this an unfair business practice?

One thing is for certain, it should be interesting to see how it all plays out. I’m keeping my fingers crossed for Home Values across America!

By:

Scott Gormley

Broker/Owner

Oak Valley Mortgage

Direct: 530-361-6202

Cell: 530-592-8362

Email: Scott@OakValleyMortgage.com

Website: www.OakValleyMortgage.com

“California Mortgage Solutions”

If you are like most people, purchasing a home is the biggest investment you’ll ever make! If you are considering buying a home, you are likely aware of the complexity of the endeavor and the numerous factors to consider when purchasing a home. That is why it is important to prepare as best you can. Some common home buying principles are presented here for your consideration. By keeping them in mind, you will help create a successful and more enjoyable home buying experience! Since your home could cost you 25-40 percent of your gross income, it is important to conduct research, ask questions and study the process carefully. To better help you, I’ve created the “12 Mistakes Made While Buying a Home” and how to avoid them!

Making verbal agreements

If you’re asked to sign a document containing instructions contrary to your verbal agreements-Don’t! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require the contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable.

Choosing the lender just because they have the lowest rate

While the rate is important, consider the total cost of your loan, including the APR, loan fees, discount and origination points. When receiving a quote from a lender or broker, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).

The cost of the mortgage, however, should not be your only criteria.. Have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. If in the final hours of the transaction you determine that the lender has suddenly increased their profit margin at your expense, you won’t have time to start again with a different lender. Ask family and friends for referrals. Interview prospective mortgage companies. Oak Valley Mortgage welcomes questions. We believe informed buyers make the best clients for a lifetime.

Not receiving a “Good Faith Estimate”

Within three business days after the broker or lender receives your loan application, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you will pay for your loan. Bring the Good Faith Estimate (GFE) when you sign loan documents. You should not expect to pay fees which are substantially different from those contained in your GFE.

Not getting a rate lock in writing

When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and program details.

Using a dual agent-i.e.,an agent who represents the buyer and the seller in the same transaction

Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In the standard real estate transaction, the seller pays the real estate commission. When an agent represents both buyer and seller, the agent can tend to negotiate more vigorously on behalf of the seller. As a buyer, you are better off having an agent representing you exclusively. The only time you should consider a dual agent is when you get a price break. In that case, proceed cautiously and do your homework!

Buying a home without professional inspections

Unless you are buying a new home with warranties on most equipment, it is highly recommended that you get property, roof and termite inspections. This way you will know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them.

Not shopping for home insurance until you are ready to close

Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around.

Signing documents without reading them

Whenever possible, review in advance the documents you will be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you will sign are standard forms and are available for review.) It is unlikely that you will have sufficient time to read all the documents during the closing appointment.

Creating delays within the transaction

In a perfect world, all real estate transactions close on time. In the world we live in transactions are delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry.

Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won’t immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one to two weeks after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, then again, it might not!

Taking out new loans before you have completed the loan process

NEVER take out new loans to include either credit cards or car loans before you close on your purchase transaction! If your debt ratios are marginal to begin with, you could jeopardize your ability to close on your transaction and end up being either turned down or offered other options.

Existing loan obligations

ALWAYS continue to make your payments on existing debt as payments are scheduled. It is not uncommon that investors do a last minute audit that could result in an updated credit report being pulled. The last thing you want to do is to have any late payments pop up!

Scott Gormley

Broker/Owner

Oak Valley Mortgage

Direct: 530.361.6202

Fax: 530.267.5555

Website: www.OakValleyMortgage.com

“California Mortgage Solutions”

In the “real estate bank owned” culture we are in now, the new buyer should be diligent in obtaining independent home inspections.

Banks and mortgage companies are not in the business of owning and maintaining properties.  They are exempt from providing a Transfer Disclosure Statement disclosing problems with the property but not the Seller’s Statutory Disclosure.  They also require the purchase to be “as is” with no recourse.

Usually a homeowner takes care in maintaining their home, but a delinquent homeowner who is being foreclosed upon does not care to spend more money on a disappearing asset.

Many times these foreclosed properties have missing appliances, plumbing, electrical and central heating /air conditioning units.  I heard of a home last year that had all the plumbing pipes removed from under the home.

So, do your own home diligence.  Check if the property is on septic or sewer.  If it is on septic, have an inspector ascertain the condition of the holding tank, leach lines and if it needs to be pumped.  Next, hire a certified home inspector.  After receiving the report, check for noted items to be checked out further.  For instance, the report may mention water intrusion in the attic or a cap off a vent. These reports are very extensive in their comments about the condition of the home.

If there is a pool on the property, have a pool inspection performed.  This should include self-closing gates with an alarm system on each door that goes to the outside surrounding the pool area.

Once you have obtained and approved your reports for all items on the home, you are ready to release your contingency for the investigation time.  Remember, the lender/owned property does have to notify you of any adverse problems on the property.  They do have to tell you if it is in one of the natural hazard areas; they have to provide you with the condominium documents; the lead based paint hazards disclosure and a smoke detector compliance document.  Other than the above, they are free of any further investigations.

We, as Realtors, will follow through with all the inspections that are necessary for you to make your final decision on the purchase.  While you are at work, we can handle the daily work items to your satisfaction.

With the changes in home prices and available tax credits along with lower mortgage interest rates, there is a greater gain in purchasing a new home.

The new First-time home buyer should weigh the advantages of owning a home versus renting a home.

Rents have stayed consistent during the downturn and increased as the buyers that had to leave there homes needed available housing.

With the new interest rates at an all time low and tax credits issued from both California and Federal, the advantage to own a home has improved.

When you rent you give your money to the landlord.  When you own your give your money to the lender, but you have tax write offs (interest payments) each year.  So you give back to yourself instead of the landlord.

California Association of Realtors gives the following example:

Consider two households earning the same income – $48,900 a year – which is also the minimum income needed to purchase the statewide entry-level home price of $248,000.  The household that purchases a home (First-Time Buyers) at this price along with the prevailing market factors will give that household a tax deduction of over $15,800 in the first year of ownership as well as the one-time tax credit of $8,000 at that home price.  The other household that continues to rent (Renters) will most likely only be eligible for the IRS Standard deduction of $10,900, less than that of their home buying counterparts without even factoring in the $8,000 tax credit.  In the first year, the difference in the tax liability totals over $8,700 in favor of the First-Time-Buyers, mainly due to the Homebuyer Tax Credit in 2009.

The tax benefit in subsequent years of homeownership decreases as the mortgage note approaches maturity, the amount of interest declines each year assuming all else remains constant.  However, the overall tax liability savings in the first five years of ownership is well over $11,000 for the First-time Buyer household.

Also, as the note is paid down your investment remains with the property, not just given away.

Another advantage is your right to the homeownership.  You can paint your walls whatever color you would like; you can have a pet or you can remodel to your needs.

And best of all, you can physically see your investment.

Don’t wait too long to invest in one of America’s greatest assets.

Home Affordable Refinance Program

If you are a homeowner who is current on your mortgage payments, but unable to refinance to a lower interest rate because your home value has decreased, you may still be able to refinance!

Could I Qualify for a “Making Home Affordable Refinance?”

Answer these questions:

1. Is your home your primary residence?
2. Do you have a Fannie Mae or Freddie Mac loan? If you don’t know contact:
   • Fannie Mae,
     • 1-800-7FANNIE (8am to 8pm EST).
     • www.fanniemae.com/homeaffordable
   • Freddie Mac
     • 1-800-FREDDIE (8am to 8pm EST)
     • www.freddiemac.com/avoidforeclosure/
3. Are you current on your mortgage payments?
   • “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?

If you answer “Yes” to all 4 of these questions, you will want to gather all of the information:

• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about any second mortgage on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.

After you have this information, you should call your mortgage servicer or lender (the organization to whom you make your monthly mortgage payments) and ask about the Home Affordable Refinance application process. The number is on your monthly mortgage bill or coupon book.

With new programs comes implementing them. By no means will this process be simple and patience will be needed on your end. As the Government “rolls out” guidelines, banks will in turn need to make internal changes and adapt to those changes. Banks will need to create processes on how they are going to handle the calls, process and volume. Patience is key!

What if I am not eligible for a Home Affordable Refinance?

If you did not answer yes to all of the questions above, you may be eligible for a Home Affordable Modification, as I wrote about last week. To see if you may qualify for a Home Affordable Modification, visit the “modification self-assessment tool” at:

http://financialstability.gov/makinghomeaffordable/modification_eligibility.html

By:

Scott Gormley

Broker/Owner

Oak Valley Mortgage

Office: 530-361-6202

Cell: 530-592-8362

Email: Scott@OakValleyMortgage.com

Website: www.OakValleyMortgage.com

“You Find the Perfect Home, We’ll Find the Perfect Loan!”

Obama is catching it from all sides. I wouldn’t want to be in his shoes. Nothing he’s doing seems to be working. In all fairness, we must give his programs a chance to work.  With any luck, they might. Obama said, “The recovery plan won’t turn our economy around or solve every problem. All of this takes time and patience.” Do you have a better idea? I say, be of good faith during these troubled times.

Since there’s practically no good real estate news let’s focus on the economy, which affects every aspect of the market. Some lenders are in near lock down. The key to our credit problem lies with Congress. They’re going to have to go along with as much as an additional $1 trillion to deal with banks’ toxic assets, which are dragging down home loans, business loans, on and on. We’ve got to get the money moving again, period, or we’re never going to break this gridlock. I’d rather get a root canal than apply for a loan today!

Troubled banks will get a deal they can’t refuse. If they fail the upcoming government stress test, they’ll have to take the aid route. Geithner and company figure any banks teetering on the edge will have a strong incentive to sell to investors. Uncle Sam would prime the pump by giving low interest loans to private investors to buy bundles of their home, car, business, credit card, and student loans. That would free up reserves so banks could make new loans.

If that too unfortunately goes sour, Treasury will then take over those banks and investors would walk away. Economists say that’s a tough undertaking, and that the price of failure would be steep. But desperate measures are called for in desperate times. All we can do is hope for a favorable outcome.

Always give thanks for our Chico, which is in fairly good shape in comparison to the turmoil elsewhere. We are fortunate to be living in this blessed community. Clearly there is dark pessimism out there, and the risks are decidedly to the downside. But there is a scenario where things could turn out better than anticipated. Everything hinges on confidence, sentiment, business, consumers, and investors. Improvement in those areas could unexpectedly turn things around. It’s altogether possible bank rescues and stimulus spending will show progress by summer’s end. So be it.

Refinances also are taking longer to complete.  A refinance used to take three weeks and is now taking up to six weeks.

As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month.  Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

The first and probably most important step in the refinance process is to find out which company services the loan.  The loan servicer may or not be the company where the mortgage payment is sent each month. This step is crucial, because the loan servicer is generally the one that can modify the loan.  If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.

Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender.  The “loss mitigation department” is where the refinance and/or loan modification process begins.

After discussing options with the loss mitigation department, homeowners should write a forbearance letter, also know as a postponement of payment letter.  This letter is sent to the servicer or lender and details the homeowner’s current financial situation and hardship.

Many government agencies and nonprofit organization provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner.  Some companies charge fees for the same services.  Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.

Just realizing there is help for homeowners in this market should put to rest some of the horror stories being used for other providers.

Information courtesy of California Association of Realtors.

Home Affordable Modification Program

The Home Affordable Modification Program addresses borrowers that have experienced a serious hardship, such as a significant drop in income, a significant and unavoidable increase in expenses such as unanticipated healthcare costs, or other serious hardships. The program puts in place several mechanisms to prevent foreclosures, thereby avoiding the effects such actions have on families, communities and the national economy.

On March 4th, The Obama Administration announced new U.S. Department of the Treasury guidelines to enable servicers to begin modifications of eligible mortgages under the Administration’s Homeowner Affordability and Stability Plan. I have placed a PDF to the 17 page guidelines on our website, which can be found at:

www.OakValleyMortgage.com/Modification.pdf

Key Highlights

-          There is no fee to borrowers for assistance through the Homeowner Stability Initiative. Consumers should be wary of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if it asks for money in advance.

-          Borrowers who are delinquent and have not yet been in contact with their lender should call their servicer or a HUD-approved housing counselor immediately, whether or not they believe they are eligible for the Homeowner Stability Initiative. The Financial Stability website (www.financialstability.gov) provides links to HUD-approved housing counselors and lists phone numbers for most lenders.

-          The home must be owner occupied, single family 1-4 unit property (including condominium, cooperative and manufactured homes affixed to a permanent foundation and treated as real property under state law).

-          Mortgage to be modified must have been originated on or before January 1^st, 2009.

-          First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1        Unit: $729,750

2        Unit: $934,200

3     Unit: $1,129,250

4     Unit: $1,403,400

-          There is no minimum or maximum Loan to Value ratio for eligibility purposes.

-          A test applies for “required modifications” and “optional modifications”.

-          Treasury will partner with financial institutions to reduce homeowners’ monthly mortgage payments. The lender will have to first reduce payments on mortgage to no greater than a 38% Front-End Debt-to-Income (DTI) ratio. Front-End DTI includes: Principle, Interest, Taxes, Insurance and Association Dues. Treasury will match further reductions in monthly payments dollar-for-dollar with the lender/investor, down to a 31% Front End DTI ratio for the borrower. A step-by-step process of how this will be achieved in included in the website address provided above, to include: reducing the interest rate, extending out the term of the loan up to 40 years and forbearance of principal.

-          Servicers will receive an up-front Servicer Incentive Payment of $1,000 for each eligible modification meeting guidelines established under the initiative. Services will also receive Pay for Success payments-as long as the borrower stays in the program-up to $1,000 each year for up to three years.

-          Borrowers will receive a “Pay-for-Performance Success Payment” up to $1,000 a year for up to five years, which will go straight towards reducing the principal balance on their mortgage, as long as the borrower is current on his/her monthly payments.

-          New borrowers will be accepted until December 31, 2012. Program payments will be made for up to 5 years after the date of entry into a Home Affordable Modification. Monitoring will continue through the life of the program.

Summary

This $75 billion dollar Federal program is directed towards foreclosure avoidance. Many will ask, “Why should I be penalized with government foreclosure intervention programs that will certainly increase my taxes, even though I made sound financial decisions myself?!” The Obama Administration is taking the stance of “We are all in this problem together!” An increase in foreclosures across the United States affects all of us, both financially and mentally.

Financially: Homes in your neighborhood that just recently sold as a foreclosure must now be used as a value comparable when attempting to sell or refinance your own home!

Mentally: Above and beyond the financial implications of foreclosures, the fabric of communities is deteriorated or lost as a direct result of them. For example, there are 5,000+ square foot homes selling right now in Murrieta, California in the low-mid $200,000 range. These are homes that would easily be selling for 2 to 2.5 times that, at the peak of the market! After driving there to search out properties for a second home for my family, we realized how depressing the area was. High rates of homes were in foreclosure, most of which were vacant. Several lawns were dead and the overall “vibe” of the area was somber. I’m sure this mentally affects those in the community, resulting in higher crime rates and the closing of businesses.