Current Real Estate Market Trends for La Jolla Single Family Homes, Condos & Town Homes

The weekend flew by and we had one of the best Open Houses ever yesterday! Over 30 groups of home buyers came through our new listing on Eads Ave and I have to say the market is hot. There were days that we would be thrilled if 5 people toured through...but over 30!! Holy Cow...what does this mean to you?

Well that all depends on if you are a home buyer or home seller, today we will cover the numbers and statistics that back up our prediction that the market has now turned to the Seller's Advantage Zone for condos and still remains a buyer's advantage for single family homes in La Jolla.

La Jolla is a special luxury market, those who aren't familiar with home prices here are SHOCKED at the prices....we like to call that sticker shock. But hey...this beautiful, quaint beach town isn't for everyone and that's okay.

Condos and Townhomes in La Jolla, CA (92037)

The median list price in La Jolla this week is $875,000. The 127 properties have been on the market for an average of 190 days. Last week the Market Action Index for condos was 29.92, this week the MAI is 30.4 with a strong upward trend.

Supply & Demand

Home sales have been exceeding new inventory for several weeks. However prices have not yet stopped falling. Since the market is already in the Seller's zone, expect prices to level off very soon. Should the sales trend continue expect that prices could climb from there.

Median Price - Again this week we see a downward notch for prices. Pricing has been weak in recent weeks and versus their absolute-high levels. The Market Action Index is a good leading indicator for the durability of this trend.

Price Per Square Foot - The market's downward trends are shared across both price and value. People are recently placing less value on homes (you can see the recent declines in price per square foot as evidence.) Look for significant changes in the Market Action Index as a precursor to price and value changes, possibly as inflection points for good investment opportunities.

The La Jolla market is currently in the Seller's Advantage zone (greater than 30). The 90-day Market Action Index stands at 30.43 which indicates that demand is strong and available supply of homes gets snapped up relatively quickly. This is the FIRST time all year I have seen the MIA go over 30...maybe you should buy before it creeps higher?!? It seems as though the demand is there...the supply is lacking.

Single Family Homes (Detached) in La Jolla, CA (92037)

The median list price in La Jolla this week is $3,185,000. The 196 properties have been on the market for an average of 147 days. Inventory is tightening and days-on market is falling. The Market Action Index shows demand heating up. These are relatively bullish signs for prices.

Supply & Demand

Home sales have begun exceeding new inventory. This is a Buyer's market so prices are not yet moving higher as excess inventory is consumed. If the tightening continues and the market moves into the Seller's zone, we may see upward pressure on pricing.

Median Price - While this week the median didn't fluctuate much, prices continue to sit at all time highs. A persistent drop of the Market Action Index into the Buyer's zone will be a leading indicator of the price strength subsiding.

Price Per Square Foot - In a market where prices are rising fairly consistently, price per square foot is essentially flat. This often implies that new homes coming on the market are pricier, and also larger than older homes. As a result the value one can buy stays the same.

The La Jolla market is currently in the Buyer's Advantage zone (below 30) for SFR's, though not strongly so. The 90-day Market Action Index stands this week at 24.84 so buyers should expect to find reasonable levels of selection.

Market Action Index Per Quartile - Three of the four quartiles of the market are in the Seller's Market zone with relatively low amounts of inventory given the current rate of demand for homes in the quartile. Notice that Quartile 1 (the highest-end price group) is showing weaker demand than the others. It's not uncommon that the premium segment of the market takes longer to sell than the rest of the group.

If you are looking to BUY or SELL in La Jolla we can help. A detailed report for your specific home can be requested by sending us an email or calling. If EMAIL is your preference, please include your home address and if you are looking to buy or sell that home, we will follow up with a comparative market analysis.

Hire Team SchuCo

Team SchuCo Of La Jolla
Teresa Schumacher - REALTOR®

Marc Coleman - Marketing/Business Development
Berkshire Hathaway HomeServices California Properties
1299 Prospect Street
La Jolla, CA 92037

E: tschumacher@bhhscal.com
Ph: 619-995-2132

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As your full service REALTOR® specializing in the beautiful city of La Jolla, California, it is my personal goal to provide you with exceptional service. Here is where you will find articles on my personal experiences and Real Estate resources. My local expertise backed by one of the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the Real Estate market a definitive mark of stability, strength, quality and innovation.
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