La Jolla California Home Starts

Home builders have been a little slow in getting home starts going this year. According to the Commerce Department, permits for new construction fell by 5.7 percent in March compared to February. Housing starts, which are when construction on homes actually begins, have gained by 2 percent. The upward movement is positive, but analysts were expecting much more construction activity at the start of the season.

With many eager home buyers looking for a greater supply of homes to choose from, inventory has been a limiting factor for the housing market. While construction rates can be rather volatile, especially this early in the season, the recent drop off could be the result of a transition for the housing market.

Rising home prices and continued pressure to provide a fresh crop of affordable homes had resulted in an increase in the construction of multifamily buildings. Now, it seems the apartment and condo boom has subsided for now. The Commerce Department reports starts for buildings with five or more units fell 7.1 percent from February to March, while permits for such units came down by 16 percent.

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With single-family starts still failing to make up the lost ground, it seems home buyers throughout the country may be looking at a tighter housing market this year.

“The housing market recovery continues, although it remains disappointing,” said PNC chief economist Stuart Hoffman in a research note reported by Los Angeles Times. “Single-family starts in particular are soft.”

La Jolla Inventory Lifts in April

Nowhere has inventory been more strapped than in San Diego County, but there does seem to be a light at the end of the tunnel for buyers willing to act on the market. In La Jolla, inventory has in fact begun its rise in anticipation of increased activity throughout the spring.

According to Altos Research, a California-based real estate analytics company, there are currently 168 properties on the market in La Jolla. This is an uptick from just a few weeks ago when inventory dipped below 160 properties.

With inventory on the rise, prices for single-family homes in La Jolla have regulated over the last few weeks. The median single-family home value has come down slightly to a current level at $2,675,957.

For an affluent home buyer looking for a luxury home, it perhaps does not get much better than La Jolla. Altos reports this market is experiencing a good balance that perhaps errs slightly in favor of home buyers according to its unique value known as the Market Action Index. This value indicates from a neutral zone of 30 whether buyers or sellers are in the driver’s seat. With a current value of 29.46, La Jolla is just under neutral and in buyer-favored territory. However, being so close to the cut-off point, it’s more likely that buyers and sellers are on even ground in La Jolla.

If you are interested in learning more about homes in La Jolla, please contact our team of luxury property experts today.

Check out these La Jolla homes priced from $3 million to $6 million

  1. 4 beds, 6 baths
    Home size: 3,900 sq ft
    Lot size: 1.22 ac
  2. 4 beds, 6 baths
    Home size: 3,900 sq ft
    Lot size: 1.22 ac
  3. 5 beds, 5 baths
    Home size: 3,790 sq ft
    Lot size: 8,995 sqft
  4. 5 beds, 5 baths
    Home size: 3,790 sq ft
    Lot size: 9,147 sqft
  5. 3 beds, 3 baths
    Home size: 2,515 sq ft
    Lot size: 6,714 sqft

See all City of La Jolla Luxury Homes For Sale.
(all data current as of 11/24/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.