Barry Green from American Dream Realty here...
Pleasure Pt is a very desirable area for surfers, as it is a world class surfing location. I lived there for many years before deciding to move to the hills in Aptos for a little more space for my family. We lived in a 2br/1ba on 32nd Ave, one block from the Point, that sold in 1997 for $270k. We sold in 2004 for $750k, and today that same 900 square foot home is probably worth closer to $695.
People are tearing down the old homes and building up. It is an unincorporated part of Santa Cruz, which falls under the jurisdiction of Santa Cruz County. Improvements to stabilize the cliffs and create a more formal bike/walk path along East Cliff Dr. are in the works.
Last October, I helped a family from San Francisco buy a $1.3 mil home in the Opal Cliffs neighborhood, which is just the other side of 41st Avenue from Pleasure Pt proper. I would say that area is the most desirable neighborhood in Pleasure Pt, with access to Privates Beach and a quick walk to Capitola Village. Homes on the cliffs there sell in the $3-5mil range.
Pleasure Pt will always be a very attractive place for folks to want to live. It has character, is relatively quiet compared to west side beach neighborhoods, has world class surfing and is close to 41st Avenue's services and amenities. Other parts of Santa Cruz offer similar levels of attractiveness for certain people. Being near the water is never a bad thing in my opinion...
Are you buying for a primary residence or rental/investment?