Ocean Beach, or OB, is located just north of the Point Loma Naval Base in San Diego. OB is about as far from Laguna Beach as a Southern California beach town could be. It’s grungy, dirty — it’s awesome. Apart from the main beach, where crowded, competitive SoCal surf is personified both off the pier and out at the Jetty, cliffs and quiet streets wind their way south, as the largest kelp forest in the world (yes, the world) hangs around just off shore.

Northern OB is home to small houses and apartment complexes, about as cheap as you can find a few blocks from the beach. Head south or up the hill and the homes get progressively larger, more expensive and the median age of the inhabitants rises in kind.

Our subject is a new home, built in 2008, with a small lot as a result of a lot split. MLS denotes the home a condo, but it is much more of a cottage than a true condo. There aren’t a ton of true single families around the subject, as the area is spattered with apartments and condos. This makes the subject desirable, if small. However, the market for small homes and condos is very slow right now in OB — lots on the market, not much selling. Prices are falling. REOs are inching upwards, further hurting property values.

The list price of $625,000 is aggressive, but based on the price the builder likely paid for the land, the cost of the tear-down and the lot split, plus the new construction, he or she probably doesn’t have a lot of room to lower the price and still make money. It will be very telling to watch if, and when, the owner bites the bullet.

Address: 4844 Coronado Ave, San Diego, CA 92107
Status: ACTIVE
List Date: 11/10/2008
List Price: $625,000
Cirios Value: $550,000
List Price vs. Cirios Value: 12.0% over-listed

For a complete Cirios Valuation, click here for our CLEAR report, or on the image to the right.

Comments? Have a home you’d like Cirios to use for our next House of the Week?

For this week’s House of the Week, Cirios takes you down the coast from San Francisco about 500 miles to one of California’s hidden gems: Ocean Beach in San Diego. Ocean Beach (or “OB” as the locals call it) is a modest, middle class town free of the pretentiousness of many other beach towns in Southern California. As a result, home prices didn’t experience the huge run-up that has plagued other areas. To be sure, it’s not cheap down there, but it’s tough to beat the location. (click on images to enlarge)

Home prices have slipped in OB along with the rest of the state, but it’s relative affordability along the coast has led to a less severe drop. It’s edgy, grungy vibe keeps the yuppies away — which is just the way the OBecians like it.

Address: 4844 Coronado Ave, San Diego, CA 92107
Status: ACTIVE
Bedrooms: 2; Bathrooms: 1
Living Space: 942 square feet
Lot Size: 1,591 square feet
List Date: 11/10/2008
Original List Price: $675,000
Current List Price: $625,000
Elementary School API: 894
Zip Code Sales Last 3 Months (year-over-year): -35.0%
% Homes in Foreclosure in Zip: 0.1% (Very Low)
% Housing Inventory For Sale in Zip: 0.3% (Very Low)

Real Estate Agent Comment: Brand new Vintage Beach Cottage with 550 SF of outside living area, private yards & large roof deck with ocean views. Great location on a wide concrete street, 1 1/2 blocks to ocean. Quiet area where palm trees and greenery fills the view. The cottage is an eclectic mix of vintage beach cottage and Spanish villa style. Beautiful, elegant finishes, classic materials and beach cottage colors all add up to a beautiful cottage your buyers will love.

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