After what was a very hot summer for home sales, many housing markets across the country are coming back down to earth. According to the National Association of REALTORS®, sales of existing homes fell off in August. This drop-off comes after four consecutive months of sales gains and marks an end to the busy summer season as markets settle into quieter fall trends. In markets such as La Jolla, August has been a month for gains and losses. Home prices have been on a somewhat even keel in the last few weeks, while inventory has been downgrading and buyer demand has been gaining.
It seems the up and down trends noted in La Jolla have been somewhat universal across the country as home sales have been gaining and losing from month to month lately. After four months of gaining activity, existing home sales took a hit in August, downgrading from a seasonally adjusted annual rate of 5.14 million in July to to 5.05 million in August, a loss of about 1.8 percent. Despite the downgrade, sales are still at the second-highest pace of 2014, however they are also below August of 2013, which saw 5.33 million units sell.
In spite of the decrease in home sales, chief economist for NAR Lawrence Yun remains hopeful for the future of the national housing market. The downgrade of home sales is due in strong part to a decrease in investor activity, meaning that less homes are going into foreclosure, a positive sign for the market.
“There was a marked decline in all-cash sales from investors,” he said. “On the positive side, first-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country.”
La Jolla Market Remains Positive For Luxury Home Buyers
One market that is doing its part to boost home sales in the luxury property market is La Jolla. Altos Research, a California-based real estate analytics company, reports that as of September 19, conditions are ripe in La Jolla to see some good action on the part of home buyers in the market.
According to Altos, the median single-family home value in La Jolla is $2,723,375. The median home value has been hovering at or near this value for quite some time now, and only recently upticked slightly to its current value.
As home prices edge up, buyer interest in the La Jolla market also seems to be heating up as indicated by Altos’ unique value that measures buyer and seller activity, the Market Action Index. La Jolla’s current MAI of 29.15 falls just below the neutral value indicating that there are fewer home buyers than sellers in this market, giving buyers more command of negotiations for sales in most cases.
If you are interested in learning more about the La Jolla luxury real estate market, please don’t hesitate to consult with our team of local property experts.