Monday, April 16, 2007

Why the Beach Cities are Going Up in Value

Marilyn Alva in an article Waterfront Homes Seen Weathering Housing Market Storm from Investors Business Daily on April 12, 2007 discusses the issues about why homes along the coasts seem to be doing so much better at holding their values then their inland counterparts. Her conclusion and that of Alan Hummel from Forsythe Appraisals is that ocean is king.. followed by inland waterways and lake front homes. Water rules.
Their conclusions follow what those of us who live in Manhattan, Hermosa , Redondo or El Segundo have known for years... people want to live at the beach and are willing to pay for the privilege.
Home prices will adjust in a slow market but it's why we don't see values drop 30-50% as predicted by many. It's why home prices in the coastal cities in Southern California continue to rise while inland towns of the state and country are seeing a different market.

In the article Lewis Goodkin of Goodkin Consulting notes that while many people have the resources to buy there are fewer ocean front properties available. He further notes that Southern California coastal cities are one of the areas resistant to price declines in a slowing market. He makes the same argument that I have always noted.. namely that most people who buy in our area are looking for a home and a community to raise their families. We are more about owner occupancy then speculation.

I highly recommmend you read the entire article.

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