The unique seaside community of La Jolla
lies just 12 miles to the north of San Diego in beautiful southern California, truly one of the more extraordinary destinations in the U.S. There’s no wonder why La Jolla and its mild weather, expansive beaches, and diverse population have been such a magnet for real estate development recently, especially high-end luxury homes and condos.
Investing in homes for sale in La Jolla can be a decisive step in your real estate journey that requires a close look at the current market conditions. That’s where this article comes in. Below, it will outline everything to know about real estate in La Jolla right now and provide a guide as to whether or not now is the best time to invest.
Background market data for La Jolla
The data for the real estate market in La Jolla, CA
, can be traced back decades, but the most relevant information comes to us starting in 2004. Since then, La Jolla has steadily drawn interest among real estate investors and homeowners thanks to its seaside location in San Diego County, good schools, welcoming neighborhoods, and more.
Looking at the average real estate costs
in La Jolla, the median sold price for all homes in the area has climbed. This is particularly true among smaller residences with one to four bedrooms. The median sold price actually dropped about 9% for homes with over four bedrooms since 2022. As of 2023, the average value of a house in La Jolla sits at $1.72m, with 89% of all properties selling for over $750k and only 11% of homes below that price point. This trend has remained steady since the early 2000s.
For those interested in investing in La Jolla real estate as a landlord, the median rent for rental properties has also risen over the same period to about $2,800 per month, almost three times the national average of $1,160 per month. 55% of all rental properties fall above the $2,000 monthly rent price point.
Getting into the details: Investing in La Jolla real estate in 2023
The outlook for investors in La Jolla looks extremely bright in 2023, given the market indicators, many of which are listed above. From here, it’s easier to give an educated opinion on the favorability of investing in real estate in San Diego County. Below, find a more detailed analysis of the outlook for investors in the coming months and years.
Local homeowner data
For one, there are several polls
to look at, which give us insights into the day-to-day experiences of local homeowners in La Jolla. In 2023, 88% of residents claimed that the condition of luxury homes is good or excellent in the neighborhood, while 75% say that there are very few vacant or abandoned lots (always a good indicator that the opportunity for investment is good.)
Comparing La Jolla to other cities
Next, it’s a good idea to compare the housing market in La Jolla
with its neighboring towns. Compared to Del Mar, CA, La Jolla homes sell for about $600k less on average. Compared to San Diego proper, La Jolla homes sell for nearly twice as much. Stepping back, the median sold price for homes in La Jolla and San Diego have climbed 2.9% and 4% respectively, whereas those in Del Mar have dropped quite a bit (about 41% since June 2022).
Homes for sale
Another key indicator that investment in La Jolla real estate is a smart decision has to do with the inventory
of homes actively for sale at any moment. As of mid-2023, just under 190 homes are on the market, with 20 new properties added since the beginning of the year. There are 13 active open houses in the neighborhood and 30 price reductions.
Days on the market
Next, it’s time to look closer at how much time homes have, on average, remained on the open market in La Jolla. Overall, the median days on the market for all properties in the area remained stable in the first half of 2023, dropping below 25 days in April to a low that hasn’t been seen since the pandemic outbreak. The highest number of days that homes remain on the market falls in November through February, peaking in December 2022 at nearly 55 days. This aligns with yearly projections as buyer demand often drops during the holidays.
Home size statistics
It’s also wise to look at the history of the size of properties
in La Jolla to learn whether larger properties and luxury residences are becoming more prominent. The average home size in the area has remained strikingly stable since at least July 2021 at 2,310 square feet.
The bottom line: is investing in La Jolla real estate a smart decision?
Looking back at all the data points above, it’s certain that mid-2023 can be an ideal time to invest in luxury real estate, particularly in La Jolla, CA.
For one, the average price of homes and condos has rebounded remarkably since 2020 and the outset of the pandemic. Compared to other nearby cities and towns, La Jolla stands out for its steady market. The price per square foot continued to climb slightly in 2023 to $1,230 as of April, up from $950 per square foot in July 2021. Lastly, La Jolla residents have said that the condition of the real estate in the area (both for sale and not for sale) is good and that the market is healthy.
Get in touch with a local real estate agent today
With this research, you’ll be in a much better position to invest in luxury La Jolla real estate if you choose. If you’d like to learn more about buying and selling homes in Southern California, reach out today! Contact the Nelson Brothers Team
for more information and to start your real estate journey.
*Header photo courtesy of Shutterstock