La Jolla real estate housing market

The La Jolla real estate housing market, a northern section of San Diego County, is facing difficult times following several months of stronger indicators. The prognosis for the future, however, remains unclear as different experts provide competing viewpoints. An August 17, 2010 report from the North County Times stated that “Home sales in North San Diego County fell precipitously in July, as a buying surge propelled by government incentives receded, leaving a crowd of sellers nervously courting a smaller pool of buyers, according to a Realtors group and real estate agents. Despite historically low mortgage interest rates below 5 percent, North County buyers acquired 721 houses in July, a 9.5 percent drop from June and a 19.9 percent drop from July 2009, according to the monthly HomeDex report from the North San Diego County Association of Realtors. The falling sales came mostly among homes priced under $400,000, thus reducing the effect of the slow market on the median house price, which sank 1.7 percent from June to $475,000, up 9 percent from July 2009. What buyers are sensing is a steady rise in the supply of houses available to them. The number of homes listed by Realtors in North County had increased seven months in a row by July, up 48 percent since December. But while the number of homes sold rose for a while, the figure fell 9.5 percent in June and then 9.5 percent again in July, on a monthly basis.”

One expert, echoing what seems to be the majority opinion, noted that the average price of a La Jolla or San Diego home for sale was likely to fall in the upcoming months. The economist was quoted in the San Diego Union-Tribune as saying that “Although there will be parts of San Diego’s housing market that will see prices and sales increases, the end of the tax rebates, continuing high unemployment and sluggish job growth, and inventory of foreclosed homes still to be released to the market, will cause overall prices and sales in San Diego to slump through the end of the year. Despite the decrease in home prices over the past three years, affordability remains a significant barrier for home buying, especially with tightened loan requirements including appropriate down payment.”