The latest edition of Emerging Trends in Real Estate, which predicts the factors that will shape the real estate market’s future, declared that San Diego’s real estate market was one to watch. In addition, a recent news story reported that San Diego's housing market is "on the rise." Some of the attributes that the San Diego market as a whole is displaying are also visible in the La Jolla real estate market, which is one of the top luxury markets in the country.
San Diego is a market to watch
Emerging Trends in Real Estate placed the San Diego real estate market at #16 on their list of “U.S. Markets to Watch.” This was a move up from its placement at #20 last year. The report stated that San Diego has the potential to outperform expectations in 2016 because of its robust life sciences and technology industries. Survey respondents were most optimistic about San Diego’s residential real estate and pinpointed the single-family and multi-family sectors as the two leading segments of the market.
The West region of the nation performed well overall and earned the highest average rank of all four regions examined in the annual publication. In addition, multi-family markets in San Diego and several other major markets in the West region are projected to “easily outperform” the regional average.
Multi-family housing development in La Jolla
The multi-family housing growth trend can be seen firsthand in development efforts in the La Jolla real estate market. The San Diego Business Journal reported that Silver Street Partners acquired $16.25 million in construction financing for a development project known as Silver Springs Townhomes. Per the article, the 18-unit luxury townhome project site covers two contiguous parcels at 7601 Draper Avenue and 720 Silver Street. Townhomes within the development are expected to list at approximately $2 million.
Home prices increase across the country
Upward motion was not only projected, but also realized. The San Diego Union-Tribune reported that home prices across the country rose 8 percent compared to their price points in February of last year. Homes sales and residential construction are also expected to increase nationwide. The same article noted that San Diego’s housing market is "well positioned" and "on the rise." The market is experiencing increased demand and started more multi-family construction projects last year than it did single-family.
Home prices and homes sales have also increased, while inventory has decreased. The Times of San Diego reported that median home prices in San Diego County rose 3.5 percent in February when compared to the same time frame last year. The paper also stated that San Diego County home sales accelerated, leaving only 38 days of inventory available. The average inventory nationwide is 96 days, which is nearly three times what San Diego has in store. The article noted that the market is experiencing an increase in home sales earlier in the year than expected.
La Jolla is one of the top markets in the country for luxury real estate
Last fall, a recurring report that ranks the top luxury markets in America revealed that La Jolla has high numbers of active and closed luxury listings. In fact, La Jolla ranked #4 in the nation for the highest number of closed luxury listings valued at $1 million. In December, The San Diego Union-Tribune reported that La Jolla tied with Del Mar for the third highest median home prices in the county, according to CoreLogic. A leading home value index shows that La Jolla home values also rose over the past year and predicts that they will continue to climb.