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State To Buy Oceanfront Homes?

This idea has to rank a 10 out of 10 on the kooky scale……would homeowners agree? An excerpt:

It’s expensive to fight the sea. It’s expensive not to do so. When property values plummet, so do property taxes. But right now property values here are still high, and State Sen. Ben Allen wants to put that value to use before it’s gone.

That’s why the 43-year-old Democrat has proposed legislation to create a revolving loan program, allowing California counties and communities to purchase vulnerable coastal properties. The goal would then be to rent those properties out, either to the original homeowner or someone else, and use that money to pay off the loan until the property is no longer safe to live in.

Think of it like a city-run Airbnb, where the profits go to making sure nobody is left picking up the full tab when the Pacific comes to collect.

It’s a strategy that’s never been tried at such a large scale, and its implementation would come with plenty of questions, policy experts say. But there’s hope in various parts of the country that the legislation passes, putting to test a buy-to-rent strategy that could offer a more permanent solution to a growing problem.

At its core, Allen’s proposal is a buyout program — a government-subsidized effort to limit the state’s longer-term exposure to sea level rise.

Within the next 30 years, $8 billion to $10 billion of existing property in California is expected to be underwater, according to the state’s nonpartisan Legislative Analyst’s Office. An additional $6 billion to $10 billion will be at risk during high tide.

“The magnitude of the potential impacts mean that the state cannot afford to indefinitely delay taking steps to prepare,” the report warns. “Waiting too long to initiate adaptation efforts likely will make responding effectively more difficult and costly.”

Communities have three options for dealing with that threat: They can defend those properties using sea walls and buffering beaches; they can learn to live with higher waters; or they can retreat and move to higher ground.

The last option is often the least popular, says Julia Stein, a project director at the Emmett Institute on Climate Change and the Environment at UCLA School of Law.

“That’s just not a conversation that a lot of coastal communities want to have,” she says.

And when the conversation does come up, one of the first questions to arise is cost.

Take Del Mar, a low-lying upscale community north of San Diego. Residents there have been in a years-long fight with the state over the term “managed retreat.” The state wants the city to consider retreating from a particularly vulnerable area. Problem is: The combined market value of the homes in that area is more than $1.5 billion.

Read full article here:

https://www.npr.org/2021/03/21/978416929/california-has-a-new-idea-for-homes-at-risk-from-rising-seas-buy-rent-retreat

“Over 40 Offers”

Another wild bidding war!

This one was in Del Mar, but on the far north end off San Dieguito Dr. which isn’t the prime Del Mar village area (though close physically). Usually it’s the creampuffs that attract all the interest and offers, but in this case it was a regular old fixer that listed for $1,150,000.

It closed for $1,500,000, which was $350,000 over list!

https://www.compass.com/listing/1260-oribia-road-del-mar-ca-92014/664910345474000849/

Del Mar Sale

Yesterday we closed escrow on our sale of 12911 Biscayne Cove in Del Mar!

I suggested our initial list price of $1,495,000, based on these recent sales:

The Barbados sale was off-market so we don’t know if that was high or low, so I didn’t use as a price gauge.

Though a list price in the low-to-mid $1,400,000s might have been more appropriate, there weren’t any other houses for sale nearby that were priced lower so I’m going to push it and see what happens over the first few days. We had a parade of buyers – 32 showings in the first 17 days on the market – yet no offers.

Originally I thought we’d see a steady flow of retirees flocking to this one-story home, but 31 of the 32 showings were to young families. Del Mar schools are the best, and while the 1,518sf was mentioned in the listing, I think the lack of other homes in this price range caused these buyers to check it out just to see if they could find a way to fit in a smaller home.

After 11 days on market, the 2,542sf Boquita house listed on the range $1,300,000 – $1,399,000, which crushed my chances of getting more. We lowered our price to $1,388,000 a few days later to stay in the game, and after a couple of weeks, we found a single guy to buy it for $1,344,000.

I found great joy in finding out that the seller had read bubbleinfo in the beginning, and it was one of the reasons why he left Michigan before the crash.  Now he and his lovely bride are off to Boise, Idaho to be near the grandkids!

https://www.zillow.com/homedetails/12911-Biscayne-Cv-Del-Mar-CA-92014/16765774_zpid/

Del Mar Heights Update

For those of us who were pushing hard to find the bottom of the retail range in Del Mar’s 92014 zip code, this was the listing that toppled over everyone’s dominoes.

This house is six doors down from the one I sold earlier this year for $2,157,000, so the value-range pricing of $1,300,000 – $1,399,000 seemed extremely aggressive at the time. Heck, when they listed, I had a 1,518sf active listing over the crest of the hill with freeway noise priced at $1,495,000!

I expected the house to be a disaster, but it looked like the typical old funky Del Mar Heights professor home that were sprinkled throughout the area.  When this was built in 1977, it was probably a fine example of a custom design of the era.

It did close for $1,475,000:

Del Mar One-Story With View

Our new listing of a gorgeous one-story home west of the I-5 freeway in Del Mar!

This is the primary residence of a long-time custom-home builder, and it shows!  There are several high-end finishes throughout the home, including the craftsman front door, deluxe custom kitchen with breakfast bar, hardwood floors, and a terrific master bath bathed in natural light!  Custom fireplace, dual-pane windows, and interior laundry room too. Enjoy the 8,600sf lot with sparkling pool, herb garden and pano easterly views day and night – wow!

12911 Biscayne Cove, Del Mar 92014

3br/2ba, 1,518sf  YB: 1972

LP = $1,495,000.  (we represent the sellers)

https://www.zillow.com/homedetails/12911-Biscayne-Cv-Del-Mar-CA-92014/16765774_zpid/

Del Mar Estate Wrap-Up

At the time of this auction in 2010, it seemed unbelievable that anyone would pay $4 million (plus 10% fee) for any lot – and these auctioneers couldn’t convince anyone else to get close.

But in the end, Mr. Palmer got the last laugh when his 10-year odyssey ended last month with the sale of the 6,580sf home he built here for $18,000,000 cash:

https://www.realtor.com/realestateandhomes-detail/2160-Balboa-Ave_Del-Mar_CA_92014_M19991-23463

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