"Real Estate in Temecula" a Great Investment Even in Today's Market

Temecula California is a prime location to invest in real estate because investors have an opportunity to purchase real estate at a significant discount. Real Estate agent Janice Kraft credits these discounts to the change in Temecula's real estate market.

In 2003-2004 Temecula experienced a real estate boom. Temecula was a desirable location for many buyers. Temecula offered large homes with plenty of amenities, for far less than homes in metropolitan areas like San Diego and Los Angeles. As the demand for real estate in Temecula went up, so did the property value. Home owners watched as their equity went through the roof almost over night.

A few things happened during this period of time. Home owners in Temecula began to pull the equity out of their homes. With the price of real estate in Temecula consistently going up, some home owners found themselves refinancing almost every 6 months. The cost of real estate was growing rapidly. As the cost of real estate went up, many buyers found themselves resorting to unconventional loans . The idea was to get in the property, and in a few months or a few years they would have gained enough equity to secure a conventional loan. Both the homeowners who were refinancing, and buyers who opted for unconventional loans anticipated that the real estate market in Temecula would continue booming. Sadly it didn't. In fact the slow down in real estate caused many homes to lose the equity they once had. Depending on how many times they refinanced, some homeowners found themselves owing more than what their home was worth. Homeowners who purchased real estate with unconventional loans found themselves facing mortgages that grow by the month. In the first 3 months of 2007 Temecula has experienced record numbers of defaults and foreclosures. The price of homes in the area have fallen, and the amount of time a home stays on the market has vastly increased.