Market Conditions in 90292>Question Details

Adam, Home Buyer in Culver City, CA

West Side beach communities feeling the market pain?

Asked by Adam, Culver City, CA Tue Sep 30, 2008

For the first time to my untrained eyes it appears that the beach communities are starting to feel the crunch. For those of you on the streets are you seeing drops finally in the Marina Del Rey, Venice, Play Vista, Santa Monica area? Is this largely due to the credit restrictions that are being applied? It is my understanding that less of these areas have been affected by the foreclosure issues, are we going to see more of that? Please give me your thoughts on these markets particularly the Marina Del Rey condo/townhome/loft market.

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Hello Adam,

I have noticed a decline in Playa Vista and Marina del Rey (condos) but prices not really going down at all in Santa Monica Venice. Prices actually going up in those areas. Also, foreclosures not widespread in SM or Venice but more in Playa Vista and the Marina. I'm seeing people get loans. They take longer to get but as long as someone has a downpayment and good credit loans are still getting written. I have seen condos drop 50% (especially in the Azzura). It will probably get worse in the condo sector, particularly areas with over development but Venice and SM are solid and I think will remain so.

Best,

Monique Carrabba
The Reavis Group
Keller Williams Wilshire
mcarrabba@kw.com
0 votes Thank Flag Link Tue Sep 30, 2008
Hi Adam,
Your observation is right on the money. There are not a lot of banks to offer loans to buyers and if they do, it i usually requires 20% down on that price range. Until we see some type of lending done, then the market in the 700k-2Mk will stall. Hopefully, the homeowners in the area will not be thinking of selling their property short. Good Luck to you!
Laarni
1 vote Thank Flag Link Tue Sep 30, 2008
Adam,

The depressed market in Marina del Rey, Venice and Playa Vista was 2008-end of 2012. 2013 saw an appreciation of 20%-25% depending on the community. Reasons reduction of short sales, foreclosures and a shortage of properties on the market. The summer of 2013 was multiple offers on properties. Some properties went above their asking prices. Prices have appreciated but seem to be stabilizing and properties are staying on the market long. Prices are not dropping but staying level. Check with lender for rates and terms. for qualification. Lending practices in my opinion is not effecting home values.

Marina del Rey and Playa Vista have a density of condominiums and townhouses. In Marina del Rey the majority are older average 30-35 years olds. In Playa Vista home age average about 6 years. Venice is single home density. This is a good time to buyer but prices do not appear to be going down. Of course, in this economy anything can happen but housing market is recovering. If considering buying take advantage of mortgage interest rates under 05%. Any questions do not hesitate calling.

Gail Mercedes Cole
310.853.9933
Your Westside Homes
http://yourwestsidehomes.com/
0 votes Thank Flag Link Tue Feb 11, 2014
Adam,

From 2008 to 2012 there was a reduction in prices due to the economy. Short Sale and foreclosures brought property values down. All areas were affected by the depressed market some more than others. In 2013 properties values rose from 20% to 25% depending on the neighborhood. I believe Venice saw the highest appreciation. Interest rates below 05%, property scarcity, majority of standard sales on market and buyers penned up demand created a buyer's flurry in the summer of 2013. Properties were seeing multiple offers and many times went above asking price. In my opinion, late 2013 and early 2014 has not seen a reduction in prices. Conversely, buyers are being more objective in choosing a new home. The real estate market is going thru early steps of recover there has been a major reduction of short sales and foreclosures. In my opinion, prices are not going down but holding study reflecting the appreciation in 2013.

Gail Mercedes Cole
310.853.9933
0 votes Thank Flag Link Sat Feb 8, 2014
This is 2013 yes Westside Properties and Beach Cities felt the pain of "The Great Recession". No the Westside did not see decreases of values like other neighborhoods in Los Angeles and the Valley but it was substantial. Fortunately, from the end of 2012 to present the Westside and Beach Cities has seen a appreciation in housing values.

REASONS FOR WESTSIDE/BEACH CITIES HOUSING APPRECIATE:
- Decrease in California unemployment
- Decrease in Short Sales
- Decrease in REOs
- Mortgage rate below 04%
- Scarcity in Housing Inventory
- Mortgage options Conventional and FHA financing
- Buyer's regained confidence in housing market
- Neighborhoods have regained integrity

I am cautiously, optimistic about the housing market. Buyers this is the time to buy but do your homework. If you enter in a bidding work will the home appraise? Are you over paying for the home? Sellers are now able to sale and make profits but be realistic about your homes value. Hopefully, we will see a healthy housing market across the country. I feel that will take a few more years. Westside and Beach Communities take advantage of this positive up-swing in the housing market.

Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Sat Jun 8, 2013
Hi Adam,

Belmont Shore in Long Beach has seen a reduction in prices, but then so has everyone else. It may not be as big a reduction as some inland areas, but still a reduction. Beach communities in general tend to not suffer as much because of their location and the fact that they aren't affordable for most first time home buyers. Another thing to take into consideration is that beach communities rebound from a down market quicker.
Web Reference: http://www.scottb4re.com
0 votes Thank Flag Link Fri Jan 30, 2009
Adam ... Your question about beach communities feeling the pain in this buyers real estate market is good. We see that most beach side communities at South OC and LA County are higher in price at seller expectation ... than many other similar homes inland. Because of higher price listings at the beach, these homes are not being sold at a solid rate.

See my article about market update for local and beautiful Newport Coast at
http://activerain.com/blogsview/901312/Local-Housing-Market-…

Best wishes to you.
Harrison K. Long, Explore Group Properties, Coldwell Banker Previews.

For a good home pricing site check out
0 votes Thank Flag Link Fri Jan 30, 2009
My professional opinion is that the beach areas have not really dropped much in asking price. There might be fewer sales then previously due to our market conditions with some properties being removed from the market but I don't see a big drop in prices.
Sellers who have a pressing need to sell their property are willing to negotiate with pre-qualified and solid buyers though.
If you are interested in a property near the beach, now is the time to buy.
0 votes Thank Flag Link Sun Dec 14, 2008
Hi there Adam. Your eyes are getting close to perfect. Certain pockets are seeing drops as buyers are having ar real tough time getting financing thus effecting the inventory pricing. There still seems not a tremendous amount of REO Foreclosures so far in these cities. Of course this could change.
Marina del Rey is holding well right now but of course there will be situations where there will be a motivated seller or a new Reo that can be a real opportunity for the ready willing and able buyers.

If you like more information on the best buys in Marina Del Ray let me know. In the mean time you can see some of the active listings on my site

Great Question and hope this helps
Michael Barron
Realtor/MBA
First Team Estates
michael-barron@sbcglobal.net
(714) 552-6817
http://www.firstteam.com/michaelbarron/PropertiesFound.aspx?…
0 votes Thank Flag Link Tue Sep 30, 2008
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