I'll be blunt: why is Eastlake/Otay Ranch so cheap? (San Diego: sale, real estate market)

[thepinksquid]

Right now I'm in the early stages of looking at the market to purchase a home. Considering our price range, as well as desires (we'd prefer something built after 2000 and under $300,000 if possible...not very easy to find in San Diego) I keep getting brought to Eastlake/Otay Ranch. This past weekend my husband and I spent some time down there driving around and looking at different properties and it looks well... nice!

Now, I understand that since it's a newer-developed area it has been harder hit by foreclosures, etc., but I'm kind of skeptical about just how cheap it seems. Is there something I'm missing? I've read through just about every thread on the area here in C-D and I'm not really finding anything negative about the area (except for the obvious that it's kind of bland and far out). I'd of course be looking at other places before purchasing but Eastlake and the surrounding areas seem like it meets our wants (and price range). Now, I also know some homes down there have Mello-Roos/HOA fees, but even taking that into consideration it's fairly cheap. Are the prices really just a result of supply and demand?

Also... if anyone else has suggestions for OTHER places to look... it would be greatly appreciated.

Criteria:
- We're looking for either a SFH or a townhome (which, our price will probably afford us the latter), not wanting a condo where you have neighbors above/below you.
- We don't have kids, no plans for kids, so schools aren't really a concern.
- We'd prefer something newer or newish (built after 2000)... but we'd entertain older. We like open floorplans and a large kitchen that it seems many older homes don't have.
- Truthfully we don't really mind if it's a little bland and tract-housing like. We work a lot, and we don't need to be near bars/nightlife.
- We don't need anything bigger than 3 bedrooms, max. Honestly 2 bedrooms would be fine.
- Under $300,000
- My husband works completely from home, and I work near Balboa Park. I'd be OK with a ~30 minute or so commute.

I'll add that we currently rent a newer (built in 2004) detached townhome-like place in Mission Valley and like it quite a bit. However places here seem to go for $450k+ which is a bit more than we'd like to spend if buying.

[Clevelandgal]

"I'll be blunt: why is Eastlake/Otay Ranch so cheap?
....except for the obvious that it's kind of bland and far out

I think you answered your question.
Since you don't mind being that far from your work, I would expand your search all over the area-there are some obscenely cool midcentury houses in La mesa. But don't leave out near by Morena/Pt Loma/Midway area. 92110 zip has a few bargains.

[echo42]

Eastlake/Otay Ranch is ground zero for the real estate market meltdown here. Chula Vista did a good job with this master planned community, but the rate of growth and density got out of control. Same old story in Eastlake as well: too many people got in way over their heads.

I remember less than ten years ago, most of the area was open land. It was also a thoroughfare for illicit border crossings more than 15 years ago; if you drive on I 805 around Olympic Parkway there are still signs to watch out for people crossing the freeway. Since the increased development and increase in border security, this has really become a thing of the past. Sometimes though the stigma can stick, especially being within five miles of the border.

I recently bought in Bonita and considered Eastlake as well. Eastlake is just too crowded for me, but I have a lot of friends that live there and are completely happy. I shop alot in Eastlake and Otay Ranch because there is everything you need there.

I would say there is definitely a fire sale going on there and it may be a good time to get in. I know everybody has their own opinion on "the bottom of the market" but it seems like a good time to me.

[SoCalTwinkie]

It appears that every place that was "hot" within 10 years of the real estate market crash has had the worse downturn. I don't think it speaks negatively of the area and what it offers, it's just bad timing. It's similar with hot stocks, when they tumble, it's not because the company somehow went bad, but that the stock price went too high. Corrections are inevitable. Buy when everyone is selling.

[oddstray]

Originally Posted by SoCalTwinkie

It appears that every place that was "hot" within 10 years of the real estate market crash has had the worse downturn. I don't think it speaks negatively of the area and what it offers, it's just bad timing. It's similar with hot stocks, when they tumble, it's not because the company somehow went bad, but that the stock price went too high. Corrections are inevitable. Buy when everyone is selling.

^^This.

Eastlake simply hasn't yet had an opportunity to prove itself to be "a good place to live". After this financial mess calms down, which may take several years I think, then whoever buys there at today's prices will own a gem.

[hitman619]

Eastlake/Otay Ranch is a great community with some really great Schools

The issues that people have with Eastlake/Otay Ranch are:
It's very crowed,on top of each other type of development.
Getting to the 805 south or north can be a nightmare in the morning or afternoon.
If you work near the east county,then the 125 fast track will useful if you don't useless.
I think the biggest problem people have With Eastlake/Otay Ranch is Race.
Eastlake/Otay Ranch Racial make up is mostly Asian/Mexican Americans with some whites and blacks mixed in.

I have some really good friends and family that live in Eastlake, and love living there!
I lived there in college and loved all the parks/hiking trails and house wives
It's very great and very underrated community.

[1AngryTaxPayer]

Originally Posted by hitman619

Eastlake/Otay Ranch is a great community with some really great Schools

The issues that people have with Eastlake/Otay Ranch are:
It's very crowed,on top of each other type of development.
Getting to the 805 south or north can be a nightmare in the morning or afternoon.
If you work near the east county,then the 125 fast track will useful if you don't useless.
I think the biggest problem people have With Eastlake/Otay Ranch is Race.
Eastlake/Otay Ranch Racial make up is mostly Asian/Mexican Americans with some whites and blacks mixed in.

I have some really good friends and family that live in Eastlake, and love living there!
I lived there in college and loved all the parks/hiking trails and house wives
It's very great and very underrated community.

Why would a mixed race community be a problem? That's why I chose Bay Park as it's mixed race.

[shmoov_groovzsd]

I have never seen a problem with that area at all. But being that it is Chula Vista, there is stigma associated with it. Childish? Absolutely because there appears to be no basis for the argument other than some made up intangible to justify a position. I have heard its because of Mexicans and being close to the border for whatever that means. I have NEVER felt threatened for my life or had some weird spidey sense that the place is off in any way shape or form there.

We go there quite often as the Otay Ranch TC mall is IMHO the nicest in the County. I am not really the biggest mall fan, but this one is pretty unique and aesthetically pleasing. If you are looking to raise a family for your budget and needs, it seems great.

We looked at living there back when it was all being built. To this day, there is no discernible difference in the way it was planned there vs north county areas like 4S Ranch or Carmel Valley. Same builders and roughly the same layouts. If you were to do a blind fold test and get dropped off any of the streets in the communities, you couldnt tell the difference between the North County master planned vs Otay's.

There are some nice deals in there now for sure, but as some of the others have said, it may be a pain getting to the 805 from there having to take Telegraph Canyon or Olympic Pkwy daily at peak traffic hours. Maybe a small price to pay?

Just watch out for the Mello Roos and HOA fees as they can easily take a $500+/mo chunk out of your expenses.

Are they the best bang for the buck for your budget? From a newer master planned community standpoint, quite possibly. Could you buy an SFH that has 'character' or in an older established neighborhood with all of these amenities? Probably not. Different strokes for different folks. Good luck!

[hitman619]

As usual Shmoov is on the money.
A friend of mine pays $650.00 Mello Roos for some park that they barely use!

Originally Posted by 1AngryTaxPayer

Why would a mixed race community be a problem? That's why I chose Bay Park as it's mixed race.

Oh i agree!
I love my family being around people of different races and back grounds.
Im just going off of what family and friends who are in real estate have told me from time to time.
Also attending a few high school events were the other teams fans are yelling Racial slurs at Eastlake/olympia high schools students.

[lrmsd]

I know people who live in east lake by choice, and for many years. There are lots of walking trails, some hikes, etc, which some people enjoy. There was a Whole Foods in development for CV, but it's currently shelved, as far as I know. Point is, the area has changed over the years, but currently has been hit by the real estate bust, as already mentioned by others.

One family living there works in mission valley. The person said they don't mind the commute at all, it's only 20 min. or so for them, though they don't work strict 9-5 hours.

Also, we drove down for the US Olympic Archery range; they have children's classes, assisted by some of the Olympic team archers and the coaches themselves! They relocated to CV from colorado springs in the last few years. There are other Olympic sports based there, as well. It's a beautiful area. Chula Vista is similar to most other suburban bland areas of SD [and there are LOTS of them!]: Some great schools, some mediocre, and some cra*py. CV has a few well regarded charter schools, as well. Southwestern College is a nice community college campus, as well, with a great Reggio Emilia based preschool onsite, available to the public (amazing design/build out on that!]. My child went there for a year; we drove down from central SD.

If you avoid old chula vista, which has numerous sketchy streets/areas, you should be fine.
In short, there's nothing 'wrong' with eastlake, other than location from what you may want to do. Some people don't find it far away or bland, if their lives are centered around that location.

As far as diversity, I find it's similar to carmel valley, mira mesa, normal heights, and several other suburbs in SD. It's a great mix of folks in chula vista; our friends [we're white] who live there are Fillipino-CV and Bonita ahve a large community. It's really not a big issue there, in my experience; it is what it is, at this point in time.