Recent reports and forecasts indicate that 2016 is already shaping up to be a banner year for La Jolla and greater San Diego. Real estate trends and news from the medical and tech industries all look rather promising, which should have a positive impact on the La Jolla real estate market. Below are five recent stories that highlight what this year has in store:
1. La Jolla has one of Southern California’s best beaches
La Jolla Cove earned a spot on the Travel Channel’s “12 Best Beaches in Southern California” list. La Jolla Cove made the list because the picturesque beach is a popular place to scuba dive and snorkel. Per the article, La Jolla Cove is also one of the most photographed beaches in Southern California.
2. UC San Diego opens Jacobs Medical Center in La Jolla
Last year, UC San Diego Health was ranked the best hospital in all of San Diego by U.S. News & World Report and recognized as one of the best in the nation. This year, UC San Diego Health will open Jacobs Medical Center, which is the largest hospital project in the state. The ten-story expansion to UC San Diego Health’s La Jolla campus will aid in providing advanced surgery, cancer and infants care.
3. San Diego is one of the hottest real estate markets in the nation
San Diego-Carlsbad earned the #3 spot on Fortune magazine’s “Hottest Real Estate Markets” list for 2016. The list was compiled by analyzing housing and economic data for 100 large markets throughout the nation. San Diego-Carlsbad was listed just below Providence-Warwick and St. Louis and above Sacramento-Roseville-Arden-Arcade. Homes in these markets sell 16 days faster than homes in others, making them the ones to watch in 2016. San Diego-Carlsbad usually holds a spot on this list, which forecasts markets that will perform well in the coming year.
4. Tech gravitates toward San Diego
The San Diego Union-Tribune published a story about a report that shows that San Diego is an attractive area with high startup opportunities and low costs, both of which appeal to the tech industry. San Diego came in at #18 on the Technology Office Outlook report, which ranked 37 metropolitan areas across the country in terms of real estate, salary levels, business and lifestyle conditions.
5. Millennials make their move
According to Realty Today, Millennials make up 30 percent of national real estate market sales and are 60 percent of first-time home shoppers. Millennials are a cohort of 87 million that is currently between the ages 25-34. The article stated that they tend to purchase pre-owned homes and are seeking properties in “closer in” subdivisions.
The Millennial cohort is known for delaying homeownership, but has also influenced the real estate market in recent years through purchasing multi-family and mixed-use properties. In the luxury home market, 69 percent of Millennials stated that they planned to purchase property in the coming year. On average, Gen Xers and Millennials purchase luxury homes at higher price points than Baby Boomers. The La Jolla real estate market is one of the top 20 luxury markets in the nation.