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Friday, June 06, 2008

Temecula: 15% of homes REO or in Foreclosure

by Calculated Risk on 6/06/2008 07:14:00 PM

From the LA Times: Housing downturn is a jolt to upscale Temecula

It wasn't supposed to happen here. Not like this. The crashes are expected to hit hard in the Fontanas and the Perrises of the world -- cities marketed more to working-class buyers, first-time buyers or sub-prime buyers. Indeed, Temecula is by no means the hardest-hit area of the Inland Empire; many communities here have plunged into record levels of foreclosure.
Today, said Rich Johnston, Temecula's deputy director of building and safety and code enforcement, as many as 15% of Temecula's 22,500 single-family homes are bank-owned or in some stage of foreclosure.
I remember visiting a friend in Temecula about 3 years ago. We were standing in his front yard, and he started telling me what his neighbors did for a living. "A mortgage broker lives there. A real estate agent there. That guy is in construction. Another mortgage broker there" ... and on and on. Over half of the households on his block were dependent on the housing market in way or another.

So it is no surprise that the housing bust is hitting Temecula hard.

But look at Temecula on this map. San Diego is far to the south - living in Escondido is a tough enough commute to work in San Diego. And Orange County is an even more difficult drive to the west. Imagine what $5 gasoline will do.

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