Appreciating The Ambience In Del Mar
by Ryan Thomas
photography by Vincent Knakal

In the past few years, Del Mar real estate has gone from steady appreciation to top Southern California commodity. In 2004, beachside lots alone went for around $6.5 million — that’s without the house — and most homes away from the shore sold in the low millions. So far this year, according to the multiple listing service Sandicor, the top sales have averaged around $4 million. But despite these high-end prices, demand for homes in Del Mar continues to exceed supply.

Several factors — beyond just the coastline and good weather — contribute to this allure. There is a unique charm to Del Mar, as well as an appreciation for culture, a strong sense of community, and a feeling of safety that is reassuring in today’s world. Add to all this the historical significance of one of the world’s top horseracing tracks, and it’s no surprise Del Mar remains one of the top luxury communities in the U.S.

“Del Mar will always remain hot,” says Patricia Lou Martin of Kramer and Martin Real Estate, “because it has so many of the things places like Santa Barbara and Malibu don’t. Clean white beaches, a village within walking distance, the racetrack, and the best climate in the country.” Martin admits prices are beginning to lower, but says that the average is still quite high — today, the average price per square foot is nearly $1,000. On top of that, many of the older homes that may not initially seem appealing, are being bought and reconstructed, thus bringing their values back up.

“The investment value is very good,” says Martin. “A lot of people are rebuilding and adding value to their properties. There are also historical values to consider in some properties.”

Mary Chaparro of the Gates Chaparro Prudential team, which operates out of Del Mar Plaza, echoes Martin’s attribution of the village’s charm, pointing out that Del Mar’s town center is a bit easier to access — often by walking — than La Jolla’s. “Oceanfront homes are going from around $6 million to $25 million,” she says, “and those properties will continue to do very well.”

With many new families looking for first homes, Chaparro points out that schooling has had a big influence on home sales as well. “The Del Mar Elementary Union and San Dieguito Union High School districts have greatly impacted property values with exceptional curriculums,” she says. “The Del Mar Union Elementary Schools feed into Carmel Valley Middle School and the acclaimed Torrey Pines High School. Many buyers specifically target Del Mar due to the well-known academia allowing students various options for college prep classes.” Last year, Torrey Pines High School received a score of 800 out of 1,000 in the Academic Performance Index, making it one of the top performers in the state.

But ambience and school system aside, Chaparro says Del Mar is an investor’s town. “There’s a lack of supply, just as there is a shortage of housing all over the county. So the land values are skewed, and you get property, like the oceanfront property in Del Mar, that is now going for quite a lot. And it will keep appreciating; it has already allowed many individuals to utilize equity from existing homes. Everyone talks of the bubble, but the market hasn’t slowed down much here. Del Mar is one place you’re going to see tremendous returns on investments.”

Lack of room to expand has caused many homeowners to build upwards and outwards — known as “McMansioning” — creating feuds among neighbors who cherish their coastal views. Chaparro mentions there are now challenges to remodelling based on view-related restrictions — the design review board must approve requests for additions since ocean views equal higher values. “They have to take into account views based on the adjacent properties, and there are a few properties that have numerous view easements and restrictions on them. This problem is much more prevalent now and everyone is hoping it will change.” For now, McMansioning continues to skew the value of properties, appreciating some and depreciating others.

Former Mayor Richard Earnest, however, says the quaintness of the village will always attract new homeowners, noting that Del Mar is more hamlet than anything else. “Even though Del Mar is a town wedged between big city and fairgrounds,” Earnest says, “it remains a small and eclectic village, much like the villages in Europe.

Topography of hillsides provides for great views, all the houses are different, the people are diverse, and we try to keep it quiet as we can.”

Earnest says that a large part of Del Mar is run on volunteerism, which in turn creates a sense of neighborhood. And though many towns in America can be considered tight-knit in the same vein, few of them, Earnest points out, have such a great coastline.

“Beach colonies are always number one,” reiterates Martin. “We’re almost like a resort town with a resort lifestyle. The village itself has so many great shops and restaurants, such as the Rendezvous Restaurant, which just opened. It’s already so popular you have to wait days for a reservation.”

The business district, and most prominently Del Mar Plaza, provides a means for fashion and entertainment, while still retaining a low-key vibe that keeps the experience personal. With views of the ocean, and an outdoor walking environment, the Plaza is the epitome of California coastal commercial property, and has had a beneficial impact on surrounding real estate.

“The Plaza was an experiment,” says Ivan Gaylor, who, along with his partner David Winkler, designed the Plaza in 1990, “to try and build a public business space that engenders and enriches the community. We believed that a community exists as much in its public spaces as in its own backyards.” He adds, “Developers often underestimate the influence of a walking community, which gives it an emotional heart. Now many homes are [marketed as being] within walking distance of the Plaza.”

With this emotional heart and quiet village charm, how does the demand for such living weigh in against an uncertain economic future? Says Chaparro, “We’re not seeing the so-called bubble. Del Mar is a special area, one that will continue to see property values do very well for a long time.”