Home Buying in Long Beach>Question Details

Charles Swett, Other/Just Looking in 22066

Why is ocean-front property in Long Beach so resistant to the big price drops that we have seen elsewhere?

Asked by Charles Swett, 22066 Thu May 14, 2009

I've been watching this property for a long time and it hardly seems to have budged. What's going on? Why won't the prices come down?

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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.
1 vote Thank Flag Link Mon Jul 27, 2009
Hi Charlie. As an agent who lives and works in Long Beach every day, I can tell you that prices on ocean front homes have come down. Granted, they have not come down big percentages like the rest of the market, but that's to be expected. Long Beach real estate in general has not fallen to the degree that other markets have. Plus, there is only so much beach and only so much ocean front property so naturally this is a commodity that carries a premium price tag. That being said, don't use this one property that you are looking at as a way of judging ocean front property in Long Beach as a whole. That one property could be an unrealistic seller or someone who isn't that serious about selling. Let's remember, he's still on the market, so until that person sells, they are not a true indicator of market pricing. Sold homes reflect market pricing, not properties that are currently on the market. Truth be told, Long Beach real estate has been selling quite well, but like anything else it has to be priced right to move. Without stepping on anyone else's toes, the Trulia stated statistics of 2 condos/co-ops having been sold in the past 8 months is completely inaccurate, even for the time period that information was posted. Bottom line, if you want to get a real true idea of the ocean front housing prices in Long Beach, check out several properties that are on the market, but more importantly look as closed sales within the past 6 months. This will show you that prices have come down, they still are outperforming other areas, and you can find tremendous value in these "limited edition" properties. If you have any questions or would like any further guidance or explanation, please don't hesitate to contact me.
0 votes Thank Flag Link Thu Aug 12, 2010
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
0 votes Thank Flag Link Fri Oct 30, 2009
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.
0 votes Thank Flag Link Mon Jul 27, 2009
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!
0 votes Thank Flag Link Mon Jul 27, 2009
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
0 votes Thank Flag Link Thu Jul 23, 2009
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
0 votes Thank Flag Link Thu Jul 23, 2009
Waterfront is very desirable and buyers are willing to pay.

Anna
917-576-5376
abrocco@laffey.com
0 votes Thank Flag Link Thu May 14, 2009
Waterfront will always be at a premium!
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Thu May 14, 2009
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