Why The La Jolla Real Estate Market is Softening
Looking back at all of the Open Houses we have hosted over the last two years...that stat is spot on! I can't tell you how many different homes we sat in, yet saw the same home shoppers cruising through every Sunday...and I'm willing to bet, they still haven't purchased their home....
A first time home buyer or not...these 5 tips are sure to help:
1. Start Saving Today - the earlier you start saving for your down payment the easier it gets. Avoid paying private mortgage insurance or a higher interest rate by putting 20% down.
2. Don't Rush It - there are so many factors to consider when buying a home, pulling the trigger too soon could result in buyer's remorse.
3. Pay Down Your Debts - not only can paying down debt help your credit score but it could help with expendable income for repairs or upgrades once you move in.
4. Avoid New Debts - most times this will affect your mortgage application and buying new furniture or a new car is a really bad idea before you close on your new home.
5. Resist the Impulse of Buying a Home You Really Can't Afford - you will thank yourself later for this one...start with the basics, get only what you need, use this purchase as a stepping stone into your next home. A person in the U.S is expected to move 11.4 times in his/her lifetime.
If you have waited to buy and you are shopping in the La Jolla market for your dream home this Monday market update will go over the current real estate conditions and trends in pricing for 92037.
Prices have been dropping for the past few weeks...will you buy now? or wait?
Condos and Townhomes in La Jolla, CA 92037
The median list price in La Jolla this week is $825,000 (WOW). The 129 properties have been on the market for an average of 107 days. Inventory is up and Market Action is trending down recently. While days on-market appears to be trending lower, the overall conditions are weakening a bit.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.
Market Action Index - The La Jolla condo market is currently in the Seller's Advantage zone (greater than 30). The 90-day Market Action Index stands at 32.27 which indicates that demand is strong and available supply of homes gets snapped up relatively quickly.
This week 23% of properties had a price decrease and 19% were re-listed, re-setting days on market to zero.
Single Family Homes in La Jolla, CA 92037
The median list price in La Jolla this week is $2,995,000. The 251 properties have been on the market for an average of 151 days. Inventory and days-on market are both trending higher recently. However, the improving Market Action Index implies some increased demand will temper the negative trends.Supply & Demand
The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes.Median Price - The market appears to be hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate significantly from here.
Price Per Square Foot - The value placed on homes continues to increase, despite the fact that prices in general have remained basically flat. These conditions can arise when inventory is light and more, smaller homes have more influence on overall prices.
Market Action Index - The La Jolla single family home market is currently in the Buyer's Advantage zone (below 30), though not strongly so. The 90-day Market Action Index stands this week at 23.63 so buyers should expect to find reasonable levels of selection.
This week 42% properties had a price decrease and 21% were re-listed, re-setting days on market to zero.The question of the week my friends....
IS THE LA JOLLA MARKET FINALLY SOFTENING?
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Teresa Schumacher - REALTOR®
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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