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Foreclosure Listing Homes in San Diego Beach Communities

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By : John Cutts    99 or more times read
The number of foreclosure listing homes located in once foreclosure-immune beachfront communities in San Diego is now rising, based on reports from realtors in San Diego.

Because of the short sales and foreclosures, the prices of nearby non-distressed properties have also been falling by about 30 percent from their peak prices in 2006. The price drops for foreclosure properties are even sharper.

Many of the beach properties are now being sold at $500,000 and below, which was a price level unheard of in San Diego in the past years.

A broker whose clients are mostly from Arizona said her single-family beach houses at Mission Beach are now priced at around $1 million, a drop from much higher prices in 2008.

According to realtors in Scottsdale and Coronado, beach communities in San Diego were previously not affected by falling prices in other parts of San Diego because of the vacation atmosphere in the areas.

But in recent months, values began to decline as the number of vacationers occupying vacation homes and other rental properties began to fall. Without rental income, beach properties started becoming foreclosure listing homes.

San Diego realtors said that in 2005, buyers could not find a Coronado beachfront property priced lower than $1 million. Now, many properties in Scottsdale and Coronado are being sold for less than $1 million.

In Imperial Beach, which is south of Coronado, beachfront properties are now being sold at $255,000, far below their $509,000 price level in 2006.

Sales transactions are also becoming drawn out, according to Mission Beach and Pacific Beach realtors, because of difficulties in obtaining home loans. It is especially tougher for buyers of properties above $700,000 who are using FHA loans and for buyers of homes in pre-foreclosure.

On the other hand, there are also attractive deals in other types of home ownership such as mooring-place leasing and fractional ownership.

Mooring places for vacation boat owners, who previously had to wait for one year before getting a slot, are now available at around $150 per month. Fractional ownership enables prospective buyers to own a fraction of a beachfront property at much lower prices.

According to realtors, condo foreclosures and other types of foreclosures have pulled down beach property values. Data from a foreclosure research firm showed that there were over 40,000 foreclosure listing homes in San Diego County as of August.

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