Hang in there Charlie. In the past 8 months (according to Trulia) only two (2) condo/co-ops were sold in L.B. and there are 200 on the market. Put in a bid for what you can afford and someone is bound to blink.
Looking as well,
Alan

Charles,

The support for prices comes from the demand for the property/location. In this market the bargains are going to come in locations that are not as desireable. Ocean side property in an area that is not subject to hurricanes and humidity, and are located near areas that have larger job opportunities are going to have less downward pressure on prices. The Los Angeles coastal areas will maintain their value due to the number of people that have interest there. Generally when people are looking for Ocean Views and coastal weather they are in a position to pay the premium prices that are asked. As said many times in response to your question it has to do with the location.

A winning strategy is to determine what it is you are looking for in a location. If you want to be beside the ocean and are not tied to a specific area, then you can look for alternative ocean side areas. If you are tied to a general location due to work or family then using an experienced Real Estate Agent can help you find a distressed property, lease option opportunities or a property in a location that is going to have better value in the future as the economy begins it's recovery.

If you are not tied to the greater Los Angeles area, you may find that ocean view properties can be purchased in California north of Santa Barbara or significantly less than in the metropolitan areas.

As the original poster of this question, I appreciate the many thoughtful, informative answers. However, the answer by Aaron (in Boise, ID of all places) is not especially helpful. Aaron felt free to comment on my "strategy" ("bad") without knowing me, my circumstances, or anything else except his own views. The reason I've been watching this for so long is that I can't afford to buy a decent unit at existing market prices, and I've been hoping they will drop to the point that I can handle them. I know sales people like Aaron are always trying to sell, but I'm not going to be railroaded into making a purchase I can't afford just so that a greedy, impatient salesman like Aaron ("Buy it!" he advises me) can make a commission. This is part of the reason for the financial meltdown we are facing in this country.

Well, this goes back to the three most important rules in real estate:
1. Location
2. Location
3. Location

The more important question is this: Why would you be watching a home for a long time hoping it's price would drop along with the rest of the market? The more important issue that's been overlooked here is that you are hoping to buy a piece of real estate that ebbs and flows with the market. Is this the way you buy stocks too? Bad strategy.

You've identified what must be a great area that holds values regardless of the fact we are staring right into the largest real estate crash ever witnessed in our history. Buy it!

Ocean-front properties have a very high appeal in the market so may take longer to drop in price than homes not on the water. If you were interested though, working with an agent can help you expand your available resources to find an ocean-front home for the price that satisfies your range. I work as a mother-daughter team with my mother, Lucie, and we both would love to help you out. Having two agents rather than will provide double the resources to help find you the perfect home. Please, contact either me, Brittany Dean 516-376-2580 or Lucie Dean, 516-353-9965, if you would like some help on your house hunt! Hope to hear from you soon

If you've seen one house in particular that has stayed at the same price, there may be several reasons. First, waterfront property will always be at a premium. However, I've marketed homes in beach communities and values have been affected everywhere. Much also depends on the homeowner. Many homeowners refuse to acknowledge that the market has gone down everywhere. They feel that somehow, mystically or magically, their home was spared the market downturn. Or they simply feel their home is better than everyone else's. It may also depend on when they purchased the home. If the bought the home after 2000, their mortgage may be higher than the actual value of the home and they may not be in a position to sell unless they do a short sale. If you are looking for ocean front property or any other type of property, I am a certified buyer representative and would be pleased to assist you.

Ralph Windschuh
Certified Buyer Representative
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com

Waterfront is very desirable and buyers are willing to pay.

Anna
917-576-5376
abrocco@laffey.com

Waterfront will always be at a premium!