Why is Ocean Beach RE still overpriced?

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Submitted by mixxalot on March 22, 2008 - 8:34am

I see tons of dumps in Ocean Beach way overpriced. The homes for sale need at least 100k plus of repairs to be livable yet are selling for way too much money. Even the homes far from the beach are expensive. Will these dumps drop in value to make worthwhile?

Also, OB is not prestigious like PB or Del Mar so I keep scratching my head who the hell is buying these dumps.

Submitted by jpinpb on March 22, 2008 - 9:37am.

I feel your frustration and confusion. I look in PB. Then shake my head at the ridiculous sales. So I look in OB and laugh. Just wrong the prices being asked. Hang in there. Eventually OB will reduce. The resistance is weakening and will make it's way there. Did you see the thread on the place in Point Loma listed for 800k sold for 600k?

http://www.sdlookup.com/MLS-076062646-87...

Submitted by blahblahblah on March 22, 2008 - 10:43am.

Why is Ocean Beach RE still overpriced?

People are willing to pay a premium to be close to methheads and smelly hippies. It is also really nice to be able to walk to your drum circle instead of having to drive your car there.

Submitted by woodrow on March 22, 2008 - 12:24pm.

I'm a renter in OB waiting for prices to fall in hopes of finding a 3br, 2bth SFR for 400k or less. I'm absolutely blow away by the asking prices in both 92107 and 92106. As the original poster mentioned, anything livable is 500k+ at this point, with nicer homes on the hill or south of Newport 800k+.

I know there are some fairly wealthy folks in the Sunset Cliffs area and in the Point Loma hills, I can't believe that young professionals making 150K+ salaries are buying 2bd, 1bth, 800 sq ft homes for 500k plus.

I absolutely love the OB/Pt Loma area, but am getting a bit frustrated watching homes in other areas freefall while homes here are only slowly trending down.

Submitted by mixxalot on March 22, 2008 - 3:26pm.

Patience is what we need

I am saving up toward a 20% down payment and have good credit. Hopefully prices will fall in next few years so that I can buy a small townhome in either OB or PB. I like these areas as a single professional guy its fun to hang out and live close to the beach and nubile 20-something beach babes. I could buy in some inland area like Poway or RB but besides the fire risk it would take me a lot of time to drive to have fun on weekends. If I had a family, I'd probably buy a foreclosure in Escondido or Poway but for time being will wait this one out.

Submitted by SD Realtor on March 22, 2008 - 4:42pm.

Mixx I spent the majority of my 20's in south mission. Pretty much it is unbeatable. Your strategy is sound my friend.

To others.... it really is not worth your time getting all foamy at the mouth trying to figure out why people buy and why certain areas have not come down yet. Trying to figure out why people do what you would not do just is not worth the time. Check back in a few years and you should see some good results as long as we haven't totally socialized housing.

SD Realtor

Submitted by EconProf on March 22, 2008 - 4:43pm.

BobS
Ah, OB. Yes, it is incredibly over priced...always has been too. And it always will be.
It's all about location and atmosphere. It sure isn't about the funky, falling down shacks.
Apparently, enough people have always liked it's advantages to keep the prices high despite the structures. That's the verdict of the market. Rents are outrageous as well. Always will be too.

Submitted by pk92108 on March 22, 2008 - 6:26pm.

the best years of my life were spent in PB....Walking to the beach, parties with many young ladies in abundance...( i get all nostalgic when I drive thru PB and see the parties with the people spilling out on to the lawns with everyone holding those red plastic cups no doubt laced with mucho ETOH!!

maybe I should move back!....I suppose there is a babe and beach premium although the houses are pretty dumpy.....

Submitted by jpinpb on March 22, 2008 - 7:39pm.

I don't think OB has always been unaffordable. I almost picked up a place there in 2000 for 350k. Cute place. I think eventually we'll be back to 2002 prices along the coast. Everyone can say what they will on that, but people buying on the coast still have to take out a loan for the most part and the lending standards are going to be just as tight on the coast as they are inland.

Submitted by Multiplepropert... on March 22, 2008 - 9:45pm.

SD Realtor,
I probably partied with you in South Mission.I grew up on Ithmus Ct.Did you ever go to a Slo Ponies show in the 80's? P.S O.B. is bitchin, but I wouldn't raise any kids there. Good Burgers though.

Submitted by SD Realtor on March 22, 2008 - 9:54pm.

During the late 80's I lived in various places in MB. I spent most of my time at Cohasset because I played alot of volleyball. Hung out at the comber or penant on thursday nites. Through the early 90's I lived in PB but still hung out at Cohasset until marriage number 1 in 94. It was all downhill from there.

SD Realtor

Submitted by La Jolla Renter on March 22, 2008 - 10:47pm.

4755 Long Branch just sold for 565K. It sold for 732k in June of 2006.

Maybe a step in the right direction?

Submitted by jpinpb on March 23, 2008 - 5:46am.

I'm going to start looking at places that have been on the market a long time. even if priced high. I don't know how I missed that. Multi unit on sale since 5/2007. Just like the one in Point Loma on Loma Valley, another deal, gotta start making lowball, I mean real lowball offers. Tough. Don't want to offend someone or be scared, but I guess deals can be had. The worse they can say is no. People think the coast will not be affected, but there's 2 examples right there.

Submitted by EconProf on March 23, 2008 - 6:12am.

BobS
I owned units in OB in 1982-84. Made obscene profits. High turnover. Played basketball daily at Robb Field throughout the eighties. Ruined my knees (sob), just had a knee replacement. Live and learn.

Submitted by NotCranky on March 23, 2008 - 8:19am.

Basketball a Robb field was pretty rough. Not just the concrete courts either. You must be a pretty tough guy BobS. I didn't have one particular spot where I played so much but that was a good one. Mission bay park weekend mornings too. I played a lot of tennis at Robb and occasionally at the the college.

Submitted by jpinpb on March 23, 2008 - 8:21am.

mixxalot - Home sick today and bored. I made the mistake of going through the MLS for OB and was just amazed at how long places have been on the market there and the prices asked. Now I really understand what you mean. I know OB has a rep for the weed smoking, but maybe people there are doing much stronger drugs to be asking what they are for some of these places.

Submitted by mixxalot on March 24, 2008 - 8:46am.

I like both OB and PB since I am a single guy in my 30's and its my scene to have fun on weekends and the beach cannot be beat.

For me, I would actually rather have a place in PB because there are more abundance of hot young women, parties and beach than weed smoker hippies in OB.

Hoping that prices fall eventually there where I can afford a small 2 bedroom townhome with a garage. I dont need a palace to be happy just a decent sized place bigger than the 1 bedroom apartment that I have now. It would be awesome to walk around PB on weekends without need to deal with parking or driving while imbibing cocktails.

I have lived in Del Mar, CV, East County and OB/Point Loma in past 4 years here in San Diego and like the fun times for a single guy best in OB and PB.

Submitted by jpinpb on March 27, 2008 - 12:25pm.

Hey mixxalot, did you see this one, back to below 2003 prices, 130k haircut from the peak of 2005. I don't think it's that bad, of course, maybe we're just used to the sticker price shock and when something comes down, it starts to look good. I've been much more offended by some of the others. Offer a little less, they may go for it.

http://www.sdlookup.com/Property-2FC6A8F...

Submitted by paramount on March 27, 2008 - 11:08pm.

Not that this is relevant, but I remember back in the early 80's one could buy a 'typical' Pt. Loma house for less than 150k - considerably less in fact.

Submitted by ssellay on May 8, 2008 - 1:03pm.

Everyone should keep the faith... the deals are out there. We bought in Feb 1.5 blocks from sunset cliffs blvd for $2.78/sqft. And while it was a little dated, it was not what I would call a fixer-upper.

on a side note, something strange is up with that 873 loma valley place house. I would not take that as a good measure of the market.

Submitted by FormerSanDiegan on May 8, 2008 - 1:19pm.

We bought in Feb 1.5 blocks from sunset cliffs blvd for $2.78/sqft.

I think you meant $278 per square foot. Since this area is driven more by lot price than structure, this number is not useful.

For example a 1000 original-built house in that area (I think there is one left) might go for 850K (about $850 per square foot). While a remodeled 4800 sf home might go for 2 Mil ($417 per square foot). In actuality, the first house is essentially lot value and the second house is lot value plus
about $240 per square foot.

How large was the house ? Exact number not needed, just a range.

Submitted by woodrow on May 8, 2008 - 8:31pm.

I live in OB and would also like to know more about this purchase for $278 sq/ft. I've seen nothing close to Sunset Cliffs Blvd selling that cheap. According to SDLookup, there was no sale for that price per sq ft in Feb.

ssellay - are you sure it was 278?

Submitted by pfflyer on May 9, 2008 - 9:09am.

Any thoughts on this home?
http://www.sdlookup.com/MLS-086027547-10...

Zillow has a much lower estimate than 1.9M. Not sure how these are calculated. Is this on the bay or back somewhat? Thanks-

Submitted by nostradamus on May 9, 2008 - 9:38am.

pfflyer, that's a nice looking home. Buy it!

I'm at South Mission all weekends but wouldn't buy a house in PB just because of traffic. It's fine driving down once or twice a week, but I couldn't imagine how people live with pretty much one freeway exit (Balboa/Garnet) serving all PB/MB/Soledad areas. How can you stand it?

Submitted by jpinpb on June 5, 2008 - 8:01am.

nostradamus - ah - you just get a Vesap and zip around town. No traffic problems, no parking problems and easy on the wallet at the gas station :)

Side tracked here. I wanted to post this. Maybe SDR has some more info on it. Is this a short sale that's got multiple offers in a bidding war or is the bank going to take it back and - dare I say - stealth inventory? NOD has been filed.

I like this place, but small house and lot and I think still a little up there at 477 psf. If this were priced at 400k it wouldn't be too bad.

http://www.sdlookup.com/MLS-076081276-24...

Price: $469,007 to $509,007 reduced from 599k
MLS# 076081276
Listed: 10/10/2007
Beds/Baths: 3 / 1
Square Feet: 984 sf
PPSF: $477
Lot Size: 3,750 sf

In any case, lower than the bubblicious price in 2005 of 597k.

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