What's the Value of My La Jolla Home?
La Jolla Home Sales for May 2020
The La Jolla real estate market is one of the most expensive in San Diego County. If you take a virtual tour of La Jolla (see link below), or enjoy a visit in real life, you will readily see why this is the case.
As a La Jolla buyer or seller, having up-to-date local market information about La Jolla homes for sale is essential so you can make informed decisions about buying or selling your home in La Jolla.
La Jolla is a beautiful coastal community with many homes offering fabulous views of the ocean from the hills or shoreline, and a trendy, up-scale village offering the finest in shopping and dining. La Jolla has been compared to the French and Italian Rivieras with amazing ocean and coastline vistas, spectacular homes, beautiful architecture, and a terrific year-round climate, attracting visitors, and buyers, from around the world.
The La Jolla real estate market saw 18 homes sell in May 2020, a decline by 40% from last month. Here’s a summary of the real estate activity (these MLS summary data do not include private sales, and are believed to be accurate at the time this report was written but are not guaranteed).
Detached Homes Sold
9 (down 36%), 59 Days on Market, Average Sales Price $2,847,875 (up 9%), Average sales price was 89% of original asking price, with several homes selling well below asking price.
Attached Homes (condos, town homes) Sold
9 (down 44%), 47 Days on Market, Average Sales Price $908,288 (down 17%), Average sales price was 99% of original asking price
The overall volume of sales in the La Jolla real estate market dropped significantly in May, perhaps not a surprise given the pandemic.
The average sales price was higher for detached homes, no doubt due to the sale of 1 home at $4.25M and 1 at $7M that raised the average; in contrast, the average sales price of the attached homes dropped. 33% of the sales were cash transactions, versus 37% last month.
While La Jolla buyers negotiated, on average, 1 - 11% off the original list price, 33% of the La Jolla buyers paid full price or more for their homes. The average time on the market was substantially longer for both detached single family homes and attached homes compared to April.
The median sales price of detached homes, $2,040,000, was 19% lower than last month, and was down 16% for attached homes at $735,000.
There was 1 La Jolla home with a contingent status at the end of May, compared to 3 last month (these homes are still considered active, but may not actually be accepting more offers or be available to tour). This home has been contingent and waiting for short sale approval from the lender since October 2019, a common issue with short sales.
There were 265 La Jolla homes on the market at the end of May (ranging in price from $358,500 to $37,000,000), up 9% from April, despite the pandemic. The total number of active listings for detached homes is a little misleading – 1 home (at $37M) is listed 3 times due to co-listing, and with differing prices due to the opportunity to purchase all 3 lots or just 1 lot with the main house; 2 other luxury homes are each listed twice apparently due to co-listings with other brokerages…which is not unusual with luxury homes (none of these were new listings in May).
This translates to an inventory of 8.5 months for detached homes (up from 6 months last month), and 6.2 months for attached (up from 4.1 months last month), based on the rate of sales for the last 3 months. The La Jolla real estate market has shifted to a balanced market for attached homes, and it has become a market favoring buyers of detached single family homes.
New listings in May more than doubled from April with 118 compared to 45 last month, good news for buyers; 52 homes went pending (excluding those that closed escrow), also a substantial increase from 12 pendings last month, in spite of the pandemic.
If you would like more detailed information about the La Jolla real estate market, or would like to know more about specific residential areas and local market conditions (the Village, Muirlands, La Jolla Shores, La Jolla Farms, Bird Rock, Mt. Soledad, Windansea) please give me a call at (760) 840-1360. I’m happy to also discuss your housing needs and the purchase of a La Jolla home, and to create an effective plan to sell your current property if needed.
Be aware there are specific recommendations in place to help keep everyone safe, and some new procedures as a result of the SIP Order that impact home purchases and sales in our area. I am happy to share more information and answer any questions about what these procedures mean for buyers and sellers, and what you can expect when buying or selling.