I found the place for krowe; almost... California Valley, near the blooming metropolis of Pozo. $229K for a 2BR house on 2.5 acres, and maybe 70 minutes from the beach, so not an exact match, but all the hiking you could want. No snow (or rain, for that matter). You can find it on Google maps or the like; zoom in with the satellite view

I think it was one of those 1920's land schemes, where someone subdivided a bunch of useless land and sold it sight unseen to credulous easterners. A few hardy souls actually live out there, but mostly the lots provide entertainment for the silly prices sometimes asked (until they get tired of paying taxes, they get sold by the county, and the cycle starts again).

In the Sacramento Valley - around Yuba City - there are plenty of houses in your price range. The problem is that it isn't near the coast. I think it is about a 2-2.5 hour drive, but that part of the coast is gorgeous.

For comparison - my mom has a 2 br house - about 900 sq feet in Santa Cruz county, about 5 miles from the ocean. Her town is nothing special and her neighborhood is marginal. The house is old and has a lot of "defered maintenance". She had it appraised a couple months ago and AS-IS, it appraised at a bit over $500K.

Honestly, that is an unrealistic housing budget. You also need to be very careful of taxes, especially the Mello Russ tax in certain areas.

I think you need to at least double, if not triple your housing budget.

I'm sure Ag3046meant Mello Roos

What's wrong with the Atlantic ocean?

Yes I did mean Mello Roos. Thanks.

jimingso, I was wondering the same thing.

krowe- all of those talking heads and analysts are predicting that the housing market will "bottom out" around 1st quarter 2009. Maybe you will find a place in your price range then?

haha. the best you will find is a 1-bedroom condo about 2 hours from the beach. of course, if you're willing to live in South Central for example, it's only about 1.5 hours from the beach.

Aw, it's not nice to laugh! Anyone who has moved around the country knows real estate will break your heart--what's cheap in one area would be exorbitant in another. krowe, get a good map of California that includes zipcodes, pick a few towns within an hour of the coast, and head over to realtor.com. Search by zip to get an idea of what your money can buy. Sounds very basic, but it will be an education. (Pour a glass of wine before you begin, if you're so inclined.)
Happy trails!

I don't believe you can find a home at that price anywhere in the state of California within 1 hour of the beach.

Seriously, 400sf studio condos in Seattle (my city) go for more than that.

suze, I thought so too but looking at MLS houses in Crescent City start at about 150K.

Nice Condos in Santa Maria, CA are running in the $400K range... homes here in Grover Beach and Arroyo Grande CA are at least in the 600K and even an hour north in PAso RObles, where the weather is quite a bit warmer but it's still 1 hour from the beach... homes are at least in the 400K range.

Can you be a bit more specific of what part of coastal CA you're looking?

I've always had the idea that this area is still the most affordable on the coast... but I"m two minutes from the beach... not an hour.

i hope krowe you haven't left us!
have you thought about the Oregon coast? or Portland, Or? the housing market is more affordable and you could purchase something nice in your price range. Oregon has a beautiful coastline (although the water is cold, but so is the ocean water here in San Diego).
A quick drive outside of Portland and you can ski on Mt. Hood, you can boat on the Columbia River Gorge (Portland), etc.

Hello, I don't know why some people have to be mean. California and the west coast in general is incredibley expensive.400-500,000 for your basic starter home. A plumber and a teacher might live in a $600,000 home. I live near Tahoe. maybe if you like mountains you can be in the foothills outside sacramento and still be 2 hrs away from th ocean. lakes and rivers where you live. the freeway system in N. cal is good so getting to the coast isn't bad. You might be able to find something near Salinas. central Cal. maybe an hhr to the carmel coastal area. Just watch the neighborhood you pick. You are probably limited to a condo.

bajagreta... have you been to Salinas lately? It's just as pricey as here in Arroyo Grande/San Luis Obispo... only 30 minutes from the coast and you pay for it!

bajagreta: Sorry - the foothills east of Sacramento are not 2 hours from the coast. On a good day, Sacramento/Roseville/Elk Grove can be just about 2 hours out. But w/ the traffic on I-80 it is often a good deal longer drive. The Placer/El Dorado/Nevada/Amador county foothills are another 45 mins to 1 hour away -- AND have very expensive real estate.

I don't think anyone is being mean, only realistic.

You are simply not going to find a 2 bedroom house in livable condition for less than $225,000 on the coast of California. Period. You'll be lucky to find one at twice that price.

Agreed - I don't think anyone has been mean. Obviously the response isn't what the OP was hoping the hear because it basically means she and her husband are very unlikely to find what they are looking for here. That's just the reality though.

Also a mobile home or manufactured home maybe an option. Still not on the coast (maybe Salinas, 20 + minutes drive from the coast). Then you have space rents.

Thank you for all your responses. I figured it was extremely expensive but it doesn't hurt to ask.