With sales prices ranging from $4.1 million for a residential lot up to $6.35 million for a custom Seal Beach home, I am often asked if this area is a good investment or simply luxury housing. The truth lies somewhere in the middle depending on the time frame of your investment.
Let’s take a look back at the sales history in this increasingly lavish area to determine the gain/loss ratio. The last sale under $3 million was the property located at 112 Ocean Avenue which closed February 2003. This Seal Beach property has since been completely rebuilt with a beautiful custom home and, as a result, has substantially appreciated in value.
Sales on the Seal Beach Gold Coast moved slowly from 2003 – 2005 with a total of only two beachfront homes sold during this time period. In 2006, there appeared to be a renewed interest in the posh stretch of homes with three sales ranging from $4 million – $5.2 million. Just as the market began to slide downward in 2007, one of the largest lots on Ocean Avenue sold for $8 million.
Whether the investment in the aforementioned property will pay off or not has yet to be determined. Since the original purchase, this parcel has been divided into two residential lots and re-listed for sale. The smaller of the two lots is being offered at $4.1 – $4.5 mil, depending on where you look, and the larger corner lot at $4.9 mil.
On the losing end of the Gold Coast housing boom was the previous owner of 100 Ocean Avenue. The last home on the block, with unobstructed west facing views, was purchased by the previous owner in August of 2006 for $4 million. After a remodel costing in excess of $1 million, the home was eventually re-sold in December of 2012 for just $3.95 million.
Is it possible with only 45 properties in this exclusive area that prices can only continue to appreciate in value? Or is the continued appreciation of this high end real estate uncertain due to the still shaky economy?
Do you own a home on the Gold Coast or are you just curious and want to take a peak at the interior pictures of these luxury properties? Give in to your curiosity and visit www.SealBeachHomeValues.com to get unparalleled access to real estate information on this exclusive area.