The declining home prices in the Inland Empire is creating one of the most vibrant markets in America for a niche product no one wants to claim: REO houses.
In September, over 3,000 foreclosed homes were resold in Riverside County and almost 2,500 in neighboring San Bernardino County, with a 37% decline in home sales over Sept of 2007. According to Foreclosure Radar, foreclosure homes appear to be on the continual rise and the growing list of REO foreclosures on the market threatens to drive prices down even lower in the Inland Empire.
In Moreno Valley, for example, the median sales price for existing homes is down 48% over last year; Prices in parts of Victorville have fallen over 49% in the past year. These price declines threaten to create a cycle of decline that will force more homeowners into the oversaturated foreclosure market.
The Inland Empire housing market is declining at a rate that disproves conventional wisdom that housing prices rarely fall as rapidly as they rise. Below is a chart of the median sales price for existing homes in Riverside County over the past 9 years:
August 2000 - $162,000
August 2001 - $185,000
August 2002 - $215,000
August 2003 - $260,000
August 2004 - $334,000
August 2005 - $388,000
August 2006 - $420,000
August 2007 - $394,000
August 2008 - $247,000
The current price declines have been dramatic and are predicted to continue for some time.
Give us your thoughts? Do you think the market is close to bottoming out?
