Following the Great Recession, home buyers were opting for smaller home sizes in fear of another downturn in the economy. And while some experts were set to believe that these trends were here to stay, home buyers have proven that to not be the case. According to the National Association of REALTORS®, the sale of traditionally large homes in the $750,000 to $1 million range saw a growth of 13 percent in January, which was the fastest growing sector of the real estate market.
Coined as McMansions, these massive homes are all throughout La Jolla, but in other areas of the country where luxury home buyers are less active these trends show that the market is surely recovering. The stock market is hitting new highs as well giving the luxury home buyer even more traction. Last year the ultra-luxury home buyer came back with vigor and the trends are now moving down a sector.
“It’s a reflection of the U.S. economy where the upper end has done much better in this recovery in terms of income,” Lawrence Yun, NAR’s chief economist, told MarketWatch, regarding the gradual increase in production. “Now it’s the next level that is beginning to pick up.”
People still want the bigger, more better home throughout the nation and especially in La Jolla and other San Diego communities where the pace of life is ideal. And despite the fact that home sales are decreasing, home sizes are growing. In 2014 the average size of a home peaked in the first quarter and then began to fall for the remainder of the year.
“All the pundits [said], ‘The McMansion is dead,’” Douglas Yearley, chief executive of luxury home builder Toll Brothers Inc. told investors. “But the American dream is still to chase the big beautiful home with the lavish master suite and the spectacular gourmet kitchen and the finished basement that has the wine room and the media room.”
La Jolla Real Estate News
Luxury home buyers from far and wide often look to La Jolla as a place to settle down. According to Altos Research, a California-based real estate analytics company, the median single-family home value for a La Jolla home is $2,691,837 coming off a week of slight increasing values. The median value has remained fairly flat in the past few months with demand for homes in La Jolla balanced.
The Market Action Index is a unique figure used to determine whether real estate trends are in favor of buyers and sellers based on a scale that uses 30 as neutral. The index was reported at 31.41 as of February 27, showing just a slight favor toward home sellers but still very well-balanced market. There are currently about 167 available properties, which are listed for an average of 196 days.
If you’re interested in learning about luxury La Jolla homes, give us a call today. Our experienced team of real estate agents would love to assist you in finding the perfect home in San Diego County.
Check out these available La Jolla homes between $2 million and $3 million
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