March 2009 Moreno Valley Real Estate Prices down to January 2001 levels.

Looking at the median home prices provided by dqnews.com we can see the trend in Moreno Valley prices by zip code over time.  Home prices were on the rise in the 1980s hitting a high in 1990.  Home prices fell about 1/3 between 1990 and 1997.  It took about 4 years (to 2001) for homes prices to get back to the prior highs of 1990. The acceleration of home prices started a few years later, that huge increase in median prices – almost to the $400,000 mark was not in line with real income, but the result of aggressive lending.  That irresponsible lending resulted in the foreclosure problem that we are working through now, as too many families found themselves in homes and loans they could not afford.  Lenders anxious to get the foreclosed homes off their balance sheet, often under priced them to get them sold, and everyone was in a race to under price, bringing prices down at a very fast pace.  As prices went lower buyers became interested.  The issue now is too many buyers (many of them investors) in the marketplace and not enough well priced listings – this has resulted in multiple offers and up bidding; with the final step being a noticeable increase in home prices.

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