The median price in Seaside is down 50% since late 2006. Prices have dropped to levels that investors see an opportunity to cover much of the annual cost of the home through rents while betting that the properties will appreciate substantially in the coming years. Some of my clients have bought multiple properties and hired property management firms to manage their holdings.
I have helped first time home buyers purchase homes when 24 months ago they thought they would be renters forever.
Most of the sales are bank owned properties. To successfully close escrow on a bank owned property, you have to be well prepared before making the offer and understand what the bank wants and expects. Without an experienced agent, these transactions can be frustrating.
The number of REO (bank owned) properties in Seaside is well above Monterey, Pebble Beach, Carmel, Carmel Valley, or Pacific Grove. Along with Salinas and Marina, Seaside has been hard hit by the subprime mortgage meltdown.
Inventory in Seaside climbed dramatically as banks took back properties beginning in early 2007. Inventory has been declining in recent weeks. Seaside is still very much a buyer’s market but the decrease in inventory may help support a gradual leveling off of median price.