How Does/Did the Middle Class Make a Living in Monterey? (Salinas: 2013, foreclosures)

[youngmoney]

I ask those who know the area well: Who are the major employers? I know of the University, prisons, and military involvement, but what corporations are based there?

How did Monterey and Carmel become rich and Seaside and Marina become less fortunate? I don't believe the Monterey Cannery provided many well-paying jobs. Is it solely tourism based upon geography? Was major industry ever present in Carmel?

[MtnSurfer]

The main employers are the Gov't through the DLI, NPS and the DoD, the tourist industry, and support services. With world class golf courses, a marine santuary and gorgeous scenery it is pretty easy to see why ppl like to live in the area.

Monterey, Pacific Grove, Pebble Beach, Carmel and Big Sur all offer the best the area has to offer in terms of school districts, shopping, art, scenery, great beaches, golf courses, trees, etc... So RE is in more demand - location, location, location!

The middle class work normal jobs for the most part. They just sacrifice in area of high cost of housing for living is such a beautiful place. So ppl downsize, rent instead of own, have roomates, etc... just like anywhere else in the nation where the land is in such high demand.

And other ppl buy in second or third tier areas such as Seaside, Marina, Las Palmas, Watsonville, Prunedale, etc... to live as close to the nicer parts.

[sheri257]

Originally Posted by MtnSurfer

And other ppl buy in second or third tier areas such as Seaside, Marina, Las Palmas, Watsonville, Prunedale, etc... to live as close to the nicer parts.

Sorry but after looking at houses in Las Palmas yesterday, it's very nice ... a primo area. I wouldn't exactly call it a third tier area.

I actually like it a little better because the area gets more sun and the houses aren't ancient and falling apart like what you can buy in Monterey or Carmel. And ... there's actually room to park your car.

[sheri257]

Originally Posted by youngmoney

How did Monterey and Carmel become rich and Seaside and Marina become less fortunate? I don't believe the Monterey Cannery provided many well-paying jobs. Is it solely tourism based upon geography? Was major industry ever present in Carmel?

The key here is wealthy retirees. Old rich people with lots of money. There's dozens of retirement communities on the penninsula and it's wealthy retirees who are driving up prices ... not the jobs, per se because there aren't many.

[MtnSurfer]

Originally Posted by sheri257

Sorry but after looking at houses in Las Palmas yesterday, it's very nice ... a primo area. I wouldn't exactly call it a third tier area.

I actually like it a little better because the area gets more sun and the houses aren't ancient and falling apart like what you can buy in Monterey or Carmel. And ... there's actually room to park your car.

Yeah, we have ppl at work who live there and prefer it for the reasons you mentioned. I think it is probably one the nicest non-coastal communities on the Peninsula. There are actually a number of desirable areas along the Monterey Salinas Hwy (68). Another is the rather exclusive area near Corral de Tierra Country Club.

I guess when I think the nicest or highest end properties, meaning most in demand and most costly, I am referring to those closest to the coast with ocean views or within short walking distances from the beach. Of course there are older more run down homes sometimes right next to remodeled luxury homes overlooking the bay.

But if you end up buying in that area in a nice neighborhood I would probably be a little envious. My wife on the other hand likes being closer to the coast, shopping, gym, etc... and insists on living closer to Monterey itself. While nice she does not want to live out there. We have gotten spoiled renting in PG that is for sure.

It is really a trade off if looking for the best buy in a decent to good area. And everyone has a different set of priorities. For us the ultimate would be a home overlooking the bay in a newer or remodeled property with a nice yard for our kids to play in. Since we didn't win the lottery and are not wealthy a trade off of some kind will be necessary.

Derek

[sheri257]

Originally Posted by MtnSurfer

It is really a trade off if looking for the best buy in a decent to good area. And everyone has a different set of priorities. For us the ultimate would be a home overlooking the bay in a newer or remodeled property with a nice yard for our kids to play in. Since we didn't win the lottery and are not wealthy a trade off of some kind will be necessary.Derek

That would be the ultimate and, even though we're getting some settlement money and could possibly afford Monterey or Carmel ... we're going to keep working so we can get ahead for retirement. I work at the Soledad prison and my husband just transferred to a state job in Monterey so ... Las Palmas is actually the ideal commuting point for both of us ... about 20 minutes each. Although there's a lot of people who do it ... I don't want to drive an hour each way to live in PG.

And when you look at what you get in Pacific Grove for example:

http://www.montereyherald.com/proper...ns/ci_11473295

611 9th Street 93950: $777,000: 2 Bdrms/692 SqFt/1930 YrBlt, W. Warne to C. Bayes on 12-30-08
1122 Ripple Avenue 93950: $655,000: 3 Bdrms/1073 SqFt/1952 YrBlt, Frost Trust to J. Lantz on 12-29-08

I can buy a Las Palmas 3800 square foot mansion built in 2002 for that same money ... so I'll take more sun, less fog, a much newer and bigger house with weekend trips to Carmel, etc. as a trade off.

[MtnSurfer]

Originally Posted by sheri257

...
And when you look at what you get in Pacific Grove for example:

http://www.montereyherald.com/proper...ns/ci_11473295

611 9th Street 93950: $777,000: 2 Bdrms/692 SqFt/1930 YrBlt, W. Warne to C. Bayes on 12-30-08
1122 Ripple Avenue 93950: $655,000: 3 Bdrms/1073 SqFt/1952 YrBlt, Frost Trust to J. Lantz on 12-29-08

I can buy a Las Palmas 3800 square foot mansion built in 2002 for that same money ... so I'll take more sun, less fog, a much newer and bigger house with weekend trips to Carmel, etc. as a trade off.

Yes, those prices in PG are insane for the size and age of the properties sold. I am a bit surprised Las Palmas has come down 'that' much however. A 3800 SF home used to go for a lot more there.

From what I have heard Las Palmas has a good school district for elementary age children (Spreckles I think). But for High School all the kids go to Salinas High which can be a deterant for some families. However if you do not have school age children this is less of an issue obviously. And the director of our division lives there so it can't be that bad. The 'bigger, newer' home part sounds real good also!

Derek

[sheri257]

Originally Posted by MtnSurfer

Yes, those prices in PG are insane for the size and age of the properties sold. I am a bit surprised Las Palmas has come down 'that' much however. A 3800 SF home used to go for a lot more there.

Actually ... I misspoke. Generally 3800 SF or more is still listed at a million and above. This one is particularly gorgeous.

http://www.redfin.com/CA/Salinas-Mon.../home/14876395

But here's a 2800 SF house listed at $750K in Las Palmas ... we looked at that one yesterday. Very nice view.

27236 CORTINA Way, Salinas Monterey Highway, CA 93908 | MLS# 80820130

A 1400 square foot home just sold for $185K in Stonegate ... not sure if it was trashed or not but it's definitely a new low for the area. Until recently most of those were selling in the 380-420K range.

18202 Stonegate Ct, Salinas, CA 93908

Prices are still falling so, who knows how low it will go.

[MtnSurfer]

Originally Posted by sheri257

Actually ... I misspoke. Generally 3800 SF or more is still listed at a million and above. This one is particularly gorgeous.

19532 CORTINA Ct, Salinas Monterey Highway, CA 93908 | MLS# 80847729

But here's a 2800 SF house listed at $750K in Las Palmas ... we looked at that one yesterday. Very nice view.

27236 CORTINA Way, Salinas Monterey Highway, CA 93908 | MLS# 80820130

A 1400 square foot home just sold for $185K in Stonegate ... not sure if it was trashed or not but it's definitely a new low for the area. Until recently most of those were selling in the 380-420K range.

18202 Stonegate Ct, Salinas, CA 93908

Prices are still falling so, who knows how low it will go.

Thanks for the update on the market. Maybe my wife will reconsider once we are out seriously looking, especially if the price differential gets even greater.

I wonder if PG or Monterey prices will ever come back down to earth. Right now we are leasing while we wait and watch the market fall. How much further it goes is anyone's guess. But from what I have read higher end areas like Montery, PG, Pebble Beach and Carmel as normally laggers when it comes to market trends. And as you have stated there is a lot of old money in the Pennisula area. So it has little to no impact on some of those folks. They bought their home *many* years ago for pennies on the dollar and have no desire to move anywhere. I work with one guy like that who bought in Pebble Beach years ago and never plans to leave even after retirement.

Derek

[sheri257]

Originally Posted by MtnSurfer

I work with one guy like that who bought in Pebble Beach years ago and never plans to leave even after retirement.

Why should he? People move here to retire ... not the other way around.

As for market lagging ... I'm sure prices will drop more even in Carmel, Pebble Beach, etc. Foreclosures in Monterey are on the rise also.

So that 1,000 SF home in PG drops to 500K instead of 770K. It was built in 1930. I'm just not sure I want to pay that much for substantially older homes that inevitably need a lot of maintenance. Over time, it easily doubles the cost.