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

Real Estate Investments

I read an article this morning titled: This is the Best Time in History to Invest in Real Estate (read it here) noting this isn't a real estate bubble at all. And I agree. If you think real estate is a sucker's game...you might want to think again. "You may simply be letting the past color your perceptions despite continued signs of strength."

I can't drive a block in La Jolla without seeing a new construction zone (IE Flipper or Builder), some blocks every other two to three homes are under construction. It kind of amazes me...the amount of money being spent and invested and the RETURNS...would have you doing back flips. I'm just saying!

The opportunity is not only here, but it is unfolding right before your very own eyes. Original homes that sell for a million, two weeks later the green fence surrounds the perimeter of the home and a few months later a shiny new home hits the market for $4 Million. More often than not we see cash deals open and close in a matter of days. Home buyers are simply missing opportunity because they have no idea what's really going on behind the scenes. I can't spill all the beans...so for now here is our Monday Market Update.

And don't forget when you know you want to buy a home...HIRE a Buyer's Agent to represent you!

Condos and Townhomes in La Jolla, CA 92037

Considering the investment potential, particularly in the rental market - you just might want to take a closer look. The median list price for condos this week is $849,500. The 124 properties have been on the market for an average of 114 days. Demand measured by the Market Action Index is increasing and days on-market is trending downward. Even as more properties come available, these are positive trends for the market.

Supply & Demand

In the last few weeks, the Market Action Index has resumed a climb. Despite the fact that we're in a Seller's market, prices have not yet resumed upward momentum. However, it is likely that given these conditions, prices will at least level off very soon. If the increasing trend continues, expect that prices could shift higher quickly. 

Median Price - This week prices bumped up a bit but the trend of recent weeks is generally downward. A pickup in demand will be reflected in the Market Action Index, so watch that chart to try to identify a change in the market.

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 32.51 which indicates that demand is strong and available supply of homes gets snapped up relatively quickly.

This week 26% 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 243 properties have been on the market for an average of 153 days. Demand measured by the Market Action Index is increasing and days on-market is holding steady. With more properties coming available, conditions are mildly positive.

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 is hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate from these levels.

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 23.92 so buyers should expect to find reasonable levels of selection.

This week 42% of properties had a price decrease and 21% were re-listed (re-setting days on market to 0). 

Based on the basic concepts we were all taught in high school economics class...."Buy Low, Sell High"..I ask you my friends, when will you buy? And Do You Need Help?

We love working with home buyers all over San Diego, if you are looking for a dedicated team that goes to work for you and your goals then...what are you waiting for?!?

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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