California’s Inland Empire’s Hurting Housing Market

Affordability, problems getting mortgages, and the current reluctance on the part of buyers are wreaking havoc in the area of California that makes up Pomona Valley, Greater San Bernardino, High Desert, North Riverside County, & South Riverside County.

The problem is that a large amount of loans in California are either subprime and jumbo loans. With the weakening liquidity in the mortgage market these two sectors were hit the hardest. Early estimates indicate that at least 40 percent of the loans originated in this area were subprime or jumbos.

Single family home sales are down 36 percent from the third quarter of 2006 and down 60 percent from the third quarter of 2005. What doesn’t help adding to these numbers are the shear number of under construction homes that are going onto the market. According to DataQuick Information Systems, there are 14,755 homes listed as under construction, completed yet vacant, or model homes at the end of the third quarter.

To read more about California’s Inland Empire housing market stumbles head on over to the Daily Bulletin.