Riverside County is being hit harder than Orange County in the housing crisis, with prices down 20%+ from 2007 peaks and foreclosure rates climbing fast. The area built on investor speculation during the boom, and now those investors are bailing out, driving values from $750,000 peaks to $550,000-600,000.
The Riverside Reality
Riverside saw explosive appreciation 2003-2007 based partly on speculation. Investors bought, flipped, and made quick profits. That game is over.
Now those investors are trying to exit. Foreclosures are rising. Short sales are common. Values are declining 20%+ from 2007 peak.
Who's Being Hit Hardest
Inland communities (Moreno Valley, Menifee, Victorville) — Worst hit. Prices down 25%+.
Investment properties — Investors are underwater. Many are walking away or selling at massive losses.
Recent buyers — Anyone who bought in 2006-2007 is now underwater.
Speculative projects — Half-built developments abandoned. Foreclosed lots everywhere.
What Riverside Appraisers Are Seeing
My recent appraisals in Riverside:
- Market declining 2-4% monthly
- Foreclosures increasing
- Days on market up to 90+ days
- Appraisal gaps common (10-15% shortfalls)
- Comparable sales limited (distressed-only sales)
Riverside Buyers Opportunity
In 2009-2010, Riverside will be the best real estate bargain in Southern California. Prices will be deeply discounted. Values will eventually recover.
But that recovery takes years, not months.
Bottom Line
Riverside is being punished for speculation bubble. Values will eventually recover, but we're years away from that.