In Riverside County during the collapse, Canyon Lake’s average home values plummeted harder than most. In 2008, peak value averages were at $538,000 and these values took a sharp dive all the way down to $219,000 by the end of 2011. That’s a loss of over $300,000 in value in four short years, and the market was devastated.
Mean values rose back up to the mid $300,000’s in the following years, but growth has significantly slowed. This is a sign of stability, and stability is something sellers prefer. The only negative aspect to this steady growth is the neutral stalemate of the current market.
Neutral markets put sellers in a situation where they aren’t sure what to expect. It’s hard to compete in a neutral market, because neither buyers nor sellers have any kind of measurable advantage. Canyon Lake is low neutral, which marginally favors buyers in a way that’s not necessarily substantial.
Despite this neutrality, the market is not necessarily healthy. Values are holding their own, and they aren’t in any serious jeopardy. Unfortunately, this has little to nothing to do with how productive that market is. Foreclosure rates are in line with the national average, very gradual growth is occurring, but no one is purchasing homes. This makes for a stagnating market that’s difficult to fix manually – a lot of homeowners will need to wait it out.