The La Jolla real estate market, part of the larger San Diego County housing market, saw some negative signs in the most recent tracking period. According to statistics released by the Case-Shiller index and reported by San Diego Union Tribune, October 2010 marked the first time in more than a year when the average sales price of a single family home in the region declined. The agency reported that the median price fell by one and a half percent between September 2010 and October 2010. Although the figure may seem negligible, it actually represents one of the most significant variations in the local market over the last year. For the last fifteen months, all of the monthly variations have been less than one and a half percent in either direction. The composition of the market remained relatively consistent, with the lower, middle, and high tiers of the market all losing about one and a half percent in average price. Measured relative to the bottom of the market, the San Diego market has rallied considerably, although it remains substantially lower than the pre-recession peak of the market. It is important to note that the Case-Shiller index measures median price with about a month of lag compared to other measurements, although it does provide much more detailed information.
November’s statistics, which were recently released and compiled by the National Association of Realtors, indicated a substantially larger decrease in sales volume. On the bright side, the decline reported in San Diego County was the lowest downturn of all the twenty communities surveyed by organization. The number of San Diego County MLS homes which were purchased, including La Jolla properties, declined by just under eleven and a half percent. Some experts have suggested that the lower sales pace may be the result of many property owners purchasing homes earlier in the year in order to utilize the federal government’s home tax credit. Compared to year ago levels, the report also suggested that the year-over-year median price index rallied by slightly over four percent, one of the largest increases reported by the organization.