La Jolla’s Real Estate Trend Indicates it’s Still a Buyer’s Market!

Last Week median list price in LA JOLLA, CA  92037 was at $2,265,000. The 233 properties have been on the market for an average of 218 days.   

From the chart you can see Demand measured by The Market Action Index is increasing and days on-market is trending downward. Even as more properties come available, these are positive trends for the market. Remember the Market Action Index answers the question “How’s the Market”? by measuring rate of sale versus the amount of inventory. Right now it’s still a Buyer’s Market!

 As you can see the The Market Action Index has been trending lower for several weeks while prices have remained relatively stable. If inventory continues to grow relative to demand it is likely that we will see downward pressure on pricing.

Median Price  …  In La Jolla’s zip code, the prices last week have been on a downward trend recently and while essentially flat, don’t break us out of that cycle. 

Inventory of Properties Listed for Sale  …   La Jolla’s Inventory has been climbing lately. Note that rising inventory alone does not signal a weakening market. You must look to the Market Action Index and Days on Market trends to gauge whether buyer interest is keeping up with available supply.

Market Action Index per Quartile  …  This chart shows that the Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Advantage zone (below 30) for a long period, prices are likely in for a downward correction.

The market trends from these charts show that it is still a Buyer’s market with several months of inventory given the current levels of demand. You need to watch the quartiles for changes before the overall market shifts. So if you have been undecided to buy your first home or move up from your current home in La Jolla all indications are still in your favor.

 If you need a current market analysis or have real estate questions please give me a call 619-980-2738 or visit my website.