Costal Properties

[pczonie]

Hello Piggingtonians,
Just a question on costal properties- those within a block or two of water. Historically, have these properties also come down in price after a bubble or do they stagnate and wait for inflation to catch up? Will they feel as large an impact from today’s bubble as those further inland (it doesn’t seem so)? I’m interested in something close to the water in Mission bay, Pacific Beach or Crown Point. It seems to me that they are usually owned by the super wealthy who have the resources to weather any economic environment and therefore almost immune to a downturn. Is it then “different” in these areas? Thanks for your insights.
pczonie

[San Diego Native]

Regarding Coastal Properties. . .

Just about everyone in my family (about 30+ of us now) have lived along the coastal areas of San Diego since the 1970’s. Since everyone bought their homes long before any significant price increases, we will always be ahead of the game, (no HELOC’s here) but since the recent extreme price escalation, we have seen some fluctuations off an on. For example, my brother lives in Sunset Cliffs–right on the ocean–and homes there have moved up and down a bit.
Same deal for others in La Jolla, PB, Del Mar, etc.

Personally, no one we know is or will be desperate to sell multi-million dollar properties near the ocean at “fire sale” prices. From the people I know, I really believe that about 80%+ of “old school” (those in their 40’s like me, or older) San Diego residents are just fine financially–you’ll find the more disastrous housing decisions made by San Diego “newbies.”

I would think your best best would be to work with a realtor and look for distress sales–homes that have been purchases in the last two-three years. They might not be in the exact location you have envisioned, but you might find a great deal!!

[San Diego Native]

Regarding Coastal Properties. . .

Just about everyone in my family (about 30+ of us now) have lived along the coastal areas of San Diego since the 1970’s. Since everyone bought their homes long before any significant price increases, we will always be ahead of the game, (no HELOC’s here) but since the recent extreme price escalation, we have seen some fluctuations off an on. For example, my brother lives in Sunset Cliffs–right on the ocean–and homes there have moved up and down a bit.
Same deal for others in La Jolla, PB, Del Mar, etc.

Personally, no one we know is or will be desperate to sell multi-million dollar properties near the ocean at “fire sale” prices. From the people I know, I really believe that about 80%+ of “old school” (those in their 40’s like me, or older) San Diego residents are just fine financially–you’ll find the more disastrous housing decisions made by San Diego “newbies.”

I would think your best best would be to work with a realtor and look for distress sales–homes that have been purchases in the last two-three years. They might not be in the exact location you have envisioned, but you might find a great deal!!

[Anonymous]

coastal properties will absolutely get hammered just like everywhere else. For historical reference, check sdlookup.com and pick any properties in the areas you are interested. Now check sales histories of what these places sold for in the mid to late 1990s. You’ll get the idea.

[Anonymous]

coastal properties will absolutely get hammered just like everywhere else. For historical reference, check sdlookup.com and pick any properties in the areas you are interested. Now check sales histories of what these places sold for in the mid to late 1990s. You’ll get the idea.

[pczonie]

Thank you both for your comments and the link to sdlookup. I will certainly take your advice.

[pczonie]

Thank you both for your comments and the link to sdlookup. I will certainly take your advice.

[SD Realtor]

pc I remember your post not long ago when you were thinking about buying a vacation home. I own a condo in Crown Point that I will most likely never sell. I can however point out MANY examples of condos on Mission Bay that have depreciated over the past 2 years. I expect that to continue. I don’t think they will crater in the same manner as other neighborhoods but they will continue to go down.

SD Realtor

[SD Realtor]

pc I remember your post not long ago when you were thinking about buying a vacation home. I own a condo in Crown Point that I will most likely never sell. I can however point out MANY examples of condos on Mission Bay that have depreciated over the past 2 years. I expect that to continue. I don’t think they will crater in the same manner as other neighborhoods but they will continue to go down.

SD Realtor

[pczonie]

Thanks again, SD Realtor, for you polite and useful comments. Just to note however, the 4 houses on Sequoia all sold recently. I’m wondering if in the future I will be able to find new construction again at (hopefully) post bubble deflation prices on such a nice street. I guess other older homes could be bought out by some developer at the lower prices several years later, torn down and similar construction could occur at more reasonable prices. I was both disappointed when they sold and at the same time happy that I didn’t buy because of the snowballing problems with housing, especially in SD.

[pczonie]

Thanks again, SD Realtor, for you polite and useful comments. Just to note however, the 4 houses on Sequoia all sold recently. I’m wondering if in the future I will be able to find new construction again at (hopefully) post bubble deflation prices on such a nice street. I guess other older homes could be bought out by some developer at the lower prices several years later, torn down and similar construction could occur at more reasonable prices. I was both disappointed when they sold and at the same time happy that I didn’t buy because of the snowballing problems with housing, especially in SD.

[Arraya]

Check this property out….

http://www.sdlookup.com/Property-E17128B7-4627_Ocean_Blvd_414_San_Diego_CA_92109

Purchased 12/05 for 850K. Just listed for 795-850. The unit below sold for 669K last month. It’s 300 sqft smaller and one less bdr but it still looks like a push for them to get over 800K.

So yes it can go down.

[Arraya]

Check this property out….

http://www.sdlookup.com/Property-E17128B7-4627_Ocean_Blvd_414_San_Diego_CA_92109

Purchased 12/05 for 850K. Just listed for 795-850. The unit below sold for 669K last month. It’s 300 sqft smaller and one less bdr but it still looks like a push for them to get over 800K.

So yes it can go down.

[Author]

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