This document contains a summary and analysis of the housing market in Southwest California, including the cities of Temecula, Murrieta, Lake Elsinore, Menifee, Wildomar, and Canyon Lake. It provides data on home sales, prices, inventory levels, and market activity from 2010 to 2012. Key findings include declining home prices from 2008 to 2012, with median prices falling over 50% in some areas, as well as an increase in the percentage of short sales and bank-owned homes being sold in December 2012. Available housing inventory levels rose from 2010 to 2012 across the region.

1. With your host…
Gene Wunderlich

2. 250
Southwest California Homes
Single Family Homes
200
150
100
50
0
3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12
Temecula Murrieta Lake Elsinore Menifee Wildomar Canyon Lake

3. Southwest California Homes
Annual Unit Sales
Single Family Residential
10000
9
9000 6
8 8 6 8 8
8000
7 4 4 5 2 7 0
6 7 5 6 5
7000
6 0
9 5 0 4 9
6000 6 4
2 5 6
5000
4
4000
4
0
3000
1
2000 7
1000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012

4. $400,000
$350,000
$300,000
$250,000
$200,000
$150,000
Southwest California Homes
Single Family Homes
$100,000
Median Price
$50,000
$0
3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12
Temecula Murrieta Lake Elsinore Menifee Wildomar Canyon Lake Linear (Murrieta)

5. $500,000
$ Southwest California Homes
$450,000 4 $ Annual Median
$ 9 4 -53%
$400,000 4 9 5
$
6 , 2
$350,000 4
0
1 1 , 9%
$300,000
, $
0 4 8 $
4 2 $ $ $
$250,000
, 7 8 2
3 8 2 2 2
6 8 5
$200,000
7 8 3 4 4
9 , 6
4 7 1
$150,000
8 8 ,
, , ,
2 5
$100,000
9 6 4
2 3
7 4 3
$50,000
9
4 8 8
$0
2004 2005 2006 2007 2008 2009 2010 2011 2012

6. Quarterly Trend
$ $ $ $ $ $ $ $ $ $
$
$400,000 2 $ 2 3 2 3 3 2 3 2 3
2
9 2 8 1 8 0 2 9 5 9 1
7 $ $
2 6 6 $ 5 3 9 8 0 3 5 3
, , $ , 0 2 , 2
$350,000 1 , 2 , , , , , $
4 5 2 0 , 3 3 3
, 3 2 2 3 7 $ $ 0 5 $ 2
3 9 1 $ 7 9 6 3 3
7 4 7 $ 8 7 $ 6 1 3 6 1
0 $ 2 8 1 4 6 , 1 8 0
$300,000 1 1 ,
0 , 1 1 1 9 9 8 9 3 5 9 6
, 8 1 3 2
2 1 7 7 0 1
7 4 3 1 9 ,
8 9
9 4 1 , , , 0
2 , 3 2
$250,000 0 , , 4 6
, 0 1 1 7
5 3 0 5
1 9 0 7
3 8 0 8
1 6 1
$200,000 2
6 2
$150,000
$100,000
$50,000
$0
Q1 Q2 Q3 Q4
Temecula Murrieta Canyon Lake Wildomar Menifee Lake Elsinore

7. 300
December Demand
2
2 .
250
6 3
2 2 7 2 2
3 0
. . 1
5 1
6 0 1 0 .
200 2 8 1 . 9
1 1
1 0 6 8
0 .
9 8 6
3 1
1
150 6 1 3
7 1 1
1
0 9
7 9
9
8 8 7
100 0
6 4
6
6
6 5 8
4 5
0 8 6
3
3
50 2 8 3
4
7 0
0 1 1 0 1 0
. . . . . .
9 1 2 9 6 9
0
On Market (Supply) Pending Closed (Demand) Days on Market Months Supply Absorption rate *
Murrieta Temecula Lake Elsininore Menifee Canyon Lake Wildomar
* Absorption rate - # of new listings for the month/# of sold listings for the month

8. Available Inventory
2500
2000 2
1 2
9 4
1500
9 0 1
4 4 1
1
1000
1 9
9 8 8
8 7 7 7 7
6 7 6
8 4 9
500 4 7 2 8
2 1 7
5 5 2
5 3
0
1 2 3 4 5 6 7 8 9 10 11 12

9. Available Inventory
3 year history
2500
2000
1500
1000
500
0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2010 2011 2012

10. December Market Activity
By Sales Type
Standard Sale Bank Owned Short Sale
Act % of % of Act % of % of Act % of % of
ive MKT Sold MKT ive MKT Sold MKT ive MKT Sold MKT
Temecula 156 81% 93 55% 17 9% 14 8% 17 9% 60 36%
Murrieta 125 76% 89 49% 9 5% 15 8% 27 16% 74 41%
Wildomar 17 63% 15 50% 6 22% 1 3% 3 11% 15 50%
Lake Elsinore 72 67% 35 41% 18 17% 7 8% 16 15% 41 48%
Menifee 76 64% 60 46% 20 17% 21 16% 17 14% 46 35%
Canyon Lake 48 80% 14 37% 5 8% 4 11% 6 10% 19 50%
Regional
Average 494 72% 306 49% 75 8% 62 9% 86 13% 255 43%

11. December Inventory by Price Point
December Unit Sales by Price Point
(in 1,000's)
101- 201- 301- 401- 501-1
<100 200 300 400 500 mil 1 mil +
Temecula 1 2 36 42 26 48 52
Sales 1 17 66 71 16 12 3
Murrieta 3 25 38 58 8 31 40
Sales 5 38 98 56 4 8 1
Lake Elsinore 7 25 45 25 6 2 1
Sales 7 35 45 9 0 0 0
Menifee 16 49 54 18 1 4 1
Sales 13 55 66 8 1 0 0
Wildomar 7 7 13 7 1 2 0
Sales 5 15 16 7 0 0 0
Canyon Lake 1 4 18 14 11 17 3
Sales 1 8 12 13 6 2 0
Total
Inventory 35 112 204 164 53 104 97
Total Sales 32 168 303 164 27 22 4

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