There is an old saying in the industry:
All real estate is local
National, State and City real estate statistics can be presented to fit any occasion and frequently are. Here’s a recent headline from the La Times:
But these sort of headlines can only generalize and paint the picture in broad strokes. It’s important to know that trends and stats can change from town to town, neighborhood and subdivision.
But did you appreciate that market conditions can change between price ranges in the same town?
As part of two different marketing proposals recently, I had two completely different sets of market conditions in La Jolla.
La Jolla – between $900,000 and $1,500,000
25 active listings. 24 homes pending, that opened escrow since September.
38 sold listings in the past 90 days. That’s an average of 12.5 sold listings per month.
So we have just 2 months supply of listings, meaning we have a very strong sellers market – one that should remain strong, unless financing conditions markedly change.
La Jolla between $2,500,000 and $3,500,000:
43 active listings. 10 homes are in escrow, although 6 of them have been pending for over 3 months.
Only 5 homes closed escrow in the past 3 months.
That represents 27 months supply – 3 to 4 months supply would indicate a strong sellers market, so currently it’s very much a buyers market.
The lesson to draw is don’t rely on newspaper headlines, not even in the local papers – especially quoting median prices.
The stats above indicate that there is a lot of competition for not a lot of inventory in the lower price range, whereas in the higher price point, buyers are in much shorter supply and can negotiate harder and expect to get more concessions from owners anxious to sell.
Remember – all real estate is local, especially at different price points.
I can research market conditions for the price range you are interested in, for La Jolla, Del Mar and Rancho Santa Fe – just ask …