La Jolla Real Estate Market Conditions - April 2009
La Jolla continues to show declining demand and excessive inventory. While overall San Diego home sales in the first quarter of 2009 had over a 50% sales increase for both detached homes and condos, La Jolla had sales declines of 14% for detached homes and 20% for condos. This negative sales trend has continued into April with year over year sales declines of 20% for detached homes and 38% for condos while the county had increase over 20% for both types of homes. These sales trends are not unique to La Jolla but are seen in other higher priced neighborhoods. Over 80% of San Diego home sales are below $500,000 and just a few years ago that number was around 50%, indicating that the recent sales growth has not been in the higher priced market segment which includes La Jolla.
A major issue for the La Jolla housing market is excessive supply. Combined with weak demand this puts detached homes at a 14 month supply, condos are doing better with a 7 months supply. For detached homes sized between 1600 sq ft and 2500 sq ft the months supply exceeds 20 months. This compares with an overall county average months supply of 3 months. This imbalance between supply and demand will create negative price pressures in the La Jolla market.
While the supply issue would cause negative price pressures, it is difficult to track price trends for La Jolla due to the small number of data points - one sale can completely distort the trend. The other issue is the location distribution of the sales which makes year to year comparisons not relevant. What trends we do see indicate that prices are declining which ties into the over supply issue. Of the 10 homes sizes that we track 4 did not have any sales in April. Of the remaining 6 home sizes 5 had price decreases ranging from a low of 3% to a high of 49%. While I would not put great confidence in the absolute decline number the trend is clearly that prices are in decline.
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Data from Sandicor is deemed reliable but not guaranteed.
About Bob Casagrand 619 507-4878:
As a Real Estate Consultant I serve both Buyers and Sellers with the goal of 'sell for more buy for less'. For Buyers, my Preferred Buyer Program provides you with the tools, information, guidance and council to assist you in making the buying decision that best meets your goals. For Sellers, my Magnetic Home Marketing System will market your home to be sold not just list your home for sale, with the objective of 'selling faster for more money', even in today’s market. Oh yes, for those of you that sell and buy your home from me I have a Total Value Program, which gives you the best of all worlds. For more details on any or all of these programs just e-mail your request to me at bcasagrand@searchinsd.com
In this transition market, if you are looking to buy or sell a home now or even 6 months or more away there are a couple of things you should do. Remember, information is the key to wise decision making. First, you should sign up for the home locator program on this website. The up-dates on new listings will keep you current on what is available on the market. For Buyers this will the opportunity to see the new listings as they happen and for Sellers you will be able to see what is going on with competing homes. Of course, I am only a 'click' away from being of assistance to you on any questions you may have about a specific property or the market in general. Second, you must keep up-to-date with current market trends; unit sales, average price and interest rates. The perfect tool for you to do this with is the premier real estate newsletter, Realty Times. This newsletter has daily up-dates on interest rates, a library of buyer/seller relevant articles and once a month a Market Trend analysis of San Diego and various neighborhoods. The beauty of this newsletter is that if the neighborhood of interest to you is not included I can add it to out list. To get your free subscription to Realty Times just e-mail your request to me at bob.casagrand@gmail.com .By using these two tools you will be current with the market and it's trends, this will enable you to make the best buying and selling decisions of the most valuable asset you will ever have.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
