If you were even only slightly paying attention you should have been aware of the bubble popping sometime in early 07. By then the sales of homes had ground to a halt and prices were starting to fall. The had already been falling for a year or more in Sand Diego and up in the Bay area. The problem for some folks was they were listening to the propaganda that the NAR and CAR were putting out about the median price still rising. That's true, technically it was still rising but only because sales of low to mid priced homes had all but stopped.
What amazed me was that a few people were still paying near peak prices. They were still buying new homes in the IE for crazy prices. I remember looking at the homes back then, heck I still have some of the brochures. I figured they'd be collectors items some day. My grand kids will never believe me when I tell them houses in Riverside were a million dollars in 2006.
Here a perfect example of one of the folks that didn't take the time to open the paper or research the internet before making the most important purchase of their life. 827 Valleverde Way, Perris. This house is built RIGHT BELOW the Lake Perris dam. Yes the one they found to be flawed and may collapse in a 7.5 earthquake! These homes were built in 2007 and this particular one was turned over to our oblivious home owners in April 07. The 3461 s/f house has 5 bedrooms and 4 bathrooms. It sold new for $450k, quite a deal at the time as the homes in MoVal, jsut up the street were closer to $600k. Might had something to do with the risk of being swept away??? Anyway, the owners eventually get the message, or the loan reset or unelmployment etc... Whatever the reason it's now listed as a short sale for $235k. Nearly 1/2 off and probably priced around market value given the comps. By the way, what a crapping listing Mr, Dave Scott! 130 days on market and one picture is all you can manage. Not to mention there isn't a single word to describe the home. Nothing, zip, nada! (well at least he didn't misspell anything) Another realtor that gets an F for effort.