Current market trends and predictions for the San Diego real estate market are rather positive, which makes for a promising start to the year. Late last month, The San Diego Union-Tribune reported that San Diego County property values rose by $23 billion last fiscal year, which ended in June. According to the article, this was 5.6 percent increase and marked five straight years that California property values have increased.
La Jolla real estate is very much a part of this equation. The Times of San Diego reported that San Diego County’s real estate sales were up last month and the most expensive listing sold was located in the Village of La Jolla.
Are all luxury real estate markets trending upward?
The La Jolla real estate market is one of the top twenty luxury markets in the country, as is New York. In fact, New York has a seemingly permanent placement at the top of the luxury market lists. A recently published New York Times article stated that New York real estate is selling for “astronomical” prices, but there are “signs that the market is heading back toward earth.”
The newspaper reported that in the last six months, 20 percent of New York's luxury listings cut their prices. This number is double the figure for the same time frame in 2014. The piece suggested that listing prices that were reduced were priced too high from the start. Per the article, the New York luxury market is still rather strong, even if some asking prices are being reduced.
In contrast, San Diego real estate is trending upward. A recent Fortune article stated that San Diego is one of 2016’s “Hottest Real Estate Markets.” The San Diego-Carlsbad market ranked #3 on the list. Homes in the hottest markets sell 16 days faster than those in other American markets. If this is any indication, the La Jolla real estate market should have a splendid year.
What else will this year hold?
This year’s market predictions have been promising so far. Realty Today recently published a story in which Ralph McLaughlin, a housing economist, shared his predictions for 2016. He believes this year will see “booming markets” in the south as people try to escape the cold and increased suburban property sales due to their attractive amenities and conveniences. He also predicted increased numbers of older first-time buyers and that Millennials will trade up from apartments and condos to more spacious homes.