Why so much real estate for sale on the coast? (Portland: houses, buy)

[skiffrace]

There are currently 32 homes for sale--the rest are all lots

Interesting, though do you know the percentages?
What shocked me is not only the amount of lots for sale, but their extraorbital prices!
If I could buy a decent lot for a $100K, then build a modest but nice single-level rancher for another $150K -$200K, that's reasonable.
If the lot itself costs $300K+, that's ridiculous to begin with, and then I am to go through the hustle of building a custom home...?
Yeah, and you are also right that there are not many people not only in Seaside but even in Portland who can afford $600K home, not to mention a vacation home that will be empty for 11 months of the years.

The coastal sellers are afflicted with a disease called "locura pura" (look it up)
What's ironic, that greedy bunch did not realize everybody and their brother will think that July 2017 is the best time to sell. Well, they will have a long wait, even if there is no recession in the upcoming future.

And I ditto the opinion that paying half a mil for 10 months of coastal rain and gloom is locura pura too.
Just spend a few hundred and come during the few weeks when it's actually nice out there.

[texasdiver]

Originally Posted by Hans64

In Oceanside, and I imagine in many of the coastal resort towns, the vast majority of the properties are building lots, not homes. There are currently 32 homes for sale--the rest are all lots. While it is still a high number compared to the size of the community, I don't think it is out of line with most resort areas nationally. Many of these lots were created by one developer who delivered a big project that was ill timed. The development came on line right when the housing market crashed nationally.
I know Oceanside well and reasonably priced homes still sell at a good clip. Homes over $500k move much slower. Portland generally does not have income levels that support a home in town (which is now quite expensive) and a big vacation home.

As far as Central/Eastern Oregon vs. The Coast goes, I think these inland areas are great if you like winter sports. Otherwise not so much. Bend, which was mentioned upthread, has a very short summer--I've seen frost in mid-September.

I see that now where a lot of the listings are lots in Oceanside. Not the case though in Manzanita where excluding lots there are still 94 actual houses for sale, seven of which are over $1 million. Those seem to sit the longest. I see one listing for $1.5 million that has been on the market for 655 days and another for $1 million that has been on the market for 839 days.

I think once you get up into the $1 million plus market people start wanting to build their own custom new home designed to their desires, not buy someone else's idea of a luxury home.

As for the coast vs central Oregon. Between myself and my wife we've had about 10 co-workers retire and leave the Vancouver/Portland area. Mostly they are moving towards the sun: Bend, Redmond, Sunriver, Wenatchee, Methow Valley, or to the southwest (AZ or NM). Only one is heading towards the Oregon coast where he has been building a house in Yachats for the past few years. One is also moving to Whidbey Island WA. But a lot also just stay in Vancouver and don't go anywhere.

[pdxMIKEpdx]

What's ironic, that greedy bunch did not realize everybody and their brother will think that July 2017 is the best time to sell. Well, they will have a long wait, even if there is no recession in the upcoming future.

Actually, July of any year is the start of tourist and "go to the beach" season.

It's the time of nice weather, the coast is buzzing with activity, and plenty of people are thinking to themselves that it would be wonderful to have their own beach house.

They are thinking to themselves, yes it's expensive, but I can rent it out to pay the mortgage, and use it myself when I want to, we can make it work, what could go wrong?
It will practically pay for itself!!

OUR OWN BEACH HOUSE!!!!!!!!!!!!!!!! YAY!


A couple of years later they find out what could go wrong, and put the house up for sale so some other dreamer (sucker) will buy it, and they can unload the headache while trying to make a profit.

I'll bet that a lot of those houses are perpetually for sale anyway.

[Hans64]

Originally Posted by pdxMIKEpdx

Actually, July of any year is the start of tourist and "go to the beach" season.

It's the time of nice weather, the coast is buzzing with activity, and plenty of people are thinking to themselves that it would be wonderful to have their own beach house.

They are thinking to themselves, yes it's expensive, but I can rent it out to pay the mortgage, and use it myself when I want to, we can make it work, what could go wrong?
It will practically pay for itself!!

OUR OWN BEACH HOUSE!!!!!!!!!!!!!!!! YAY!


A couple of years later they find out what could go wrong, and put the house up for sale so some other dreamer (sucker) will buy it, and they can unload the headache while trying to make a profit.

I'll bet that a lot of those houses are perpetually for sale anyway.

Sounds like a bit of sour grapes is flavoring your narrative. I know of several people who have purchased beach homes which they both use and rent and it has worked out very well for them. The key--like in every other real estate decision--is not to get in over your head. The Oregon Coast is no different in this regard.

I'll also add that as Portland becomes more conjested and building density increases, more people are going to desire an overnight escape out of the city now and then. Bend is too far unless you're staying the full weekend--Manzanita can be reached in less than half that time.

[skiffrace]

The key--like in every other real estate decision--is not to get in over your head. The Oregon Coast is no different in this regard.

Yes, it's true in general. Buying too much of a house may damage you financially, whether it is a primary house or secondary beach house.

I know of several people who have purchased beach homes which they both use and rent

There is a bit of a conflict here. I assume you make $$$ in the summer season, so you cannot live there at that time. This leaves you with enjoying your coastal house in the crappy part of the year - not much fun, and defeats the objective of "enjoyment".

...and it has worked out very well for them.

When did they buy those houses? I'd guess the ones that do well $-wise, bought their houses quite a while ago, when coastal real estate was substantially cheaper.
This thread is about the glut of the coastal real estate and its sky-high prices *today*.

And as for retiring on the coast? The sunshine is essential for the well-being of the humans.
If the depression won't get those rain-drenched seniors, vitamin D deficiency and the array of related diseases will.

[oregonwoodsmoke]

Different point of view: the coast is wonderful in the winter, with those dramatic wild storms and the lack of tourists-- although any good storm on the weekend brings them over to the coast.

The air temperature is perfect. Cool but not cold. It is rarely cold enough to run my wood stove or else I have a fire with the door open to let some of the heat out.

There is often perfect fishing weather. Rain is drizzle more often than heavy rain. The beaches are nearly vacant for walking and beach combing or running the dogs.

[boulder2015]

Originally Posted by NoMoreSnowForMe

Even in the Portland area, once you get all the way to the coast, you're too far away from the Portland jobs. Honestly, this is the same for any SF jobs.

Pretty much, unless you are wealthy, you can't live on the coast, because there aren't any jobs there.

This is even true for SF, and most of California.

Look at the few major cities that are actually on the coast - Seattle and LA, really.

So, not to be disrespectful, but don't be so naive. It's simply geographical.
.

Yeah... geographical... funny you mention geography while calling somone "naive" , when you clearly need a geography and economics briefing yourself.

1. San Francisco is literally on the coast. It is also a major city. It is not "too far from the coast to jobs."

2. SF has so many jobs it is causing severe markups in rent and housing. Lack of jobs is NOT the problem. Yes, you are rigbt to say that it is hard to afford the area unless rich. But to compare the RE situation in SF, to, say, lincoln city, OR is ridiculous.

[skiffrace]

Different point of view: the coast is wonderful in the winter, with those dramatic wild storms and the lack of tourists-- although any good storm on the weekend brings them over to the coast.

The air temperature is perfect. Cool but not cold. It is rarely cold enough to run my wood stove or else I have a fire with the door open to let some of the heat out.

There is often perfect fishing weather. Rain is drizzle more often than heavy rain. The beaches are nearly vacant for walking and beach combing or running the dogs.

Not a different point of view - I agree. When I lived in Oregon, I spent many pleasant days on the coast in winter.
However...visiting occasionally is not the same as living there permanently.
Sunshine deficit 2x as bad as already gloomy PDX, and escaping to sunny eastern Oregon takes 2x as long.

[Cloudy Dayz]

Originally Posted by skiffrace

Not a different point of view - I agree. When I lived in Oregon, I spent many pleasant days on the coast in winter.
However...visiting occasionally is not the same as living there permanently.
Sunshine deficit 2x as bad as already gloomy PDX, and escaping to sunny eastern Oregon takes 2x as long.

The sunshine deficit is not two times worse on the coast. As a matter of fact, the coast has more partly sunny days then Portland does. The only thing Portland beats the coast on is total sunshine days. Rarely is there a day on the coast that doesn't have at least some sunshine. If I want to escape to sunshine, I just keep an eye out the window, until there is a break in the clouds. I don't need to go to Eastern Oregon to see the sun.

[pdxMIKEpdx]

Originally Posted by Hans64

Sounds like a bit of sour grapes is flavoring your narrative. I know of several people who have purchased beach homes which they both use and rent and it has worked out very well for them. The key--like in every other real estate decision--is not to get in over your head. The Oregon Coast is no different in this regard.

I'll also add that as Portland becomes more conjested and building density increases, more people are going to desire an overnight escape out of the city now and then. Bend is too far unless you're staying the full weekend--Manzanita can be reached in less than half that time.

No sour grapes on my part, although when I was younger I really wanted to live on the coast, but now, as an older gent, I am glad that I never got the chance.

Three of my kids have beach houses, one in Long Beach, WA, one in Manzanita, and one a little north of Yachats.

I am well aware of what it takes to own and maintain property on the beach.

I'm just pointing out that there are a lot of dreamers out there that think they can make it work on a wing and a prayer, and sometimes it just doesn't work out for them.

Maybe someone considering buying a beach house read my "narrative" and it opened their eyes a little bit.