New Excitement in the La Jolla Housing Market
La Jolla is located just outside of San Diego, offering residents a picturesque beach lifestyle. The hilly community has seven miles of coastline and is currently home to over 42,000 people. With this idyllic location, it is no wonder that La Jolla’s real estate market was once among the most vibrant in the country. After the housing bubble burst, sales slowed dramatically and home values dropped in the area. Recent reports, however, suggest that the sun is coming out again in this beachside oasis.Thanks to fewer foreclosures, home prices have steadily been rising in La Jolla, which has created a healthier real estate market for buyers and sellers alike. Sellers are able to make more money on their homes, which has made more people willing to try putting their homes on the market. This influx of quality listings has given buyers more options, and with reasonable interest rates, buyers are increasingly showing a willingness to try investing in thehousing market in 2013.This shift has made 2013 the best year for the housing market since the bubble burst. According to the California Association of Realtors, homes have been moving much faster this year. In March, homes on the market only took 26.6 days to sell. A year ago, the median time homes were on the market was double that. This good news for La Jolla is representative of a statewide trend. Across California, homes were on the market for 29.4 days, which is a dramatic drop from 52.2 days just last year.
This increased turnaround for sellers has also helped boost home values. The average home price in 2013 is well above last year since there is more competition among buyers. This is mostly due to that fact that while homes sell faster, there are fewer on the market to consider. It is a question of supply and demand, and the numbers suggest that the local housing market is starting to shift competitively toward sellers. Last year, the local market had a 5.1 month supply. In 2013, the inventory is down to 3.3 months.
One of the main reasons for this exciting shift is confidence. When the housing market fell apart, most people lost faith in the market and stopped investing. Now that there are sure signs of recovery, more people are willing to startinvesting again. This shift reflects a growing confidence in the local real estate market. For example, right now 77 percent of consumers believe that the real estate market is on an upswing, which is a seven point increase from a year ago.
More than that, surveys suggest that the idea of home ownership continues to be an aspiration for most American families across the nation. Up to 96 percent of Americans believe that owning a home is important. This inherent belief in home ownership is driving people back to the market, and 87 percent of Americans feel like now is the right time to buy. Since most buyers can get low interest rates and a reasonable home price, 2013 does seem like the ideal year to start investing again.
While this confidence is taking root across the country, there are few markets as enticing as La Jolla. While the local market is welcoming to people from all backgrounds, some high profile buyers have been known to call this city home. Historically, actor Gregory Peck lived here, being one of the most famous residents.
More recent famed residents include Mitt Romney. Romney purchased a Spanish-style home over four years ago for $12 million. While his presidential bid failed to be successful, he has every reason to enjoy his local home thanks to its unobstructed ocean views and amenities. The Republican hopeful has developed plans to renovate the home, causing waves amongst his neighbors. There may be room to disagree on what makes for a good renovation, but Romney’s desire to invest in the market is a positive note of confidence in a housing market that was once badly depressed.
While there is no word on whether or not Romney will go through with his plans, his real estate is not the only one attracting attention. In fact, the city may also be able to claim that it is home to Iron Man. Although the movie is fictional, the home featured in some of the most dramatic scenes in the recent movie seems to be inspired by the real life Razor Residence. The Razor Residence, which is located on the hills overlooking the ocean, was designed by local architect Wallace Cunningham. The impressive structure was made to fit seamlessly into the mountainside and has over 11,000 square feet of luxury. The home features massive glass windows, showcasing the view of Torrey Pines State Reserve. Built in 2007, the home has four bedrooms and six baths and features unique amenities such as a glass elevator, a rooftop fitness room and multiple infinity pools.
The average buyer may not be able to afford the Razor Residence, but with growing activity in the market, there is every reason for buyers and sellers of all backgrounds to be hopeful about the future. The numbers suggest that every seller can expect a better home price, and buyers can take advantage of low interest rates. From Iron Man to Mitt Romney to the average person, buyers have plenty of reasons to shop locally, and there is no time like the present to give home ownership a try. For first time home buyers or reluctant repeat customers, 2013 looks to be the best year yet for investing in the La Jolla market.