La
Jolla’s True Value
In his introduction to the book Above San
Diego, Neil Morgan tells a wonderful true story about the vanguard
of La Jolla who grew tired of hearing people claim to live
in La Jolla, when actually their homes were closer to Santee.
So a group took the question to court of “Just how far
east does La Jolla extend?” In a Solomon-like decision,
the judge ruled, “La Jolla is a state of mind.”
The
question was not merely rhetorical, but a matter of money — big
money — because every inch of La Jolla real estate
is valuable. Obviously, not all neighborhoods in the area
will
bring the same prices, but just for giggles, take a look
at the current cost of living at the pinnacle of the rich
and
not always famous. This year as of May 2005, the five most
expensive homes in La Jolla sold for between $5.5 million
and almost $13 million. Averaged out, the price of these
homes
was a hefty $7,841,800. Last year, the average of the five
most valuable homes was just over $11 million (not a drop
in prices, merely five different homes). At the moment, there
are a couple of homes on the market in the high $20 million
range and one that is rumored to be available soon for about
$40 million. Take your breath away?
Not all of the homes in
La Jolla bring in prices like these, but according to the
Sandicor Comparative Market Analysis,
the mean home selling price in the last six months was $1.75
million. And the average number of days it took to sell a
home is La Jolla was 90.
When asked what the main factors
are that support prices like this, the selling agent of one
of those homes, Marty
Gellens
of Prudential Real Estate in La Jolla, says, “We
find the second home market is very big now. This wasn’t
the case five years ago, but in the aftermath of 9/11,
people don’t
want to travel as much. They like the feeling of personal
security that La Jolla has to offer. We also find that
thanks to technology,
our clients aren’t limited to where they can live
and work. So they want a second home in a great climate
like
La Jolla has.”
An average of 74 degrees and the sun
shining more than 300 days a year does give La Jolla a
rare allure. And then
there
are the beautiful beaches, many with their own unique draw.
La Jolla Cove is an underwater nature preserve forested
with kelp and marine life. Black’s Beach is the secluded
clothes-optional choice, and Windansea is the favorite
for surfers.
Realtors complain that there is a lack of
inventory available for clients, which makes their job more
challenging. “There’s
only so much coastline,” says Eric Chodorow of Willis
Allen Real Estate in La Jolla. “And we find many
of our buyers coming from Arizona and Texas demand oceanfront.”
When
pressed to describe who is buying the top-end homes that
he is selling, he said there is a range. Many are
buying second
homes, but many are families who want their kids in La
Jolla schools, such as the prestigious Bishop’s School.
A number of people from Mexico City are diversifying their
investments
by buying in the area. And some people who work downtown
buy in La Jolla because they want the resort-like lifestyle.
Indeed,
many people see La Jolla as being very like the French
Riviera. Shoppers, diners, art lovers, and antiques
collectors
all rank La Jolla as a favorite area with a sophisticated
draw. Golfers come from all over the world to play at the
Torrey
Pines Golf Club where the Buick International PGA takes
place. From the greens, the staggering view of La Jolla
and the
Pacific Ocean has made more than one visitor think how
lovely it would
be to set up housekeeping in the town.
Todd Bloom of Prudential
Real Estate La Jolla has sold many multi-million dollar homes
in La Jolla. “We are selling
condos and water view homes, everything is in demand.
We will never have enough inventory. It might take six months
to a
year to sell the very most exclusive properties, but
they
will sell. No doubt about it.”
That kind of optimism
makes one wonder if there is an end in sight. With 25
percent of the La Jolla buyers
purchasing
their
second and third homes, have we invested too much in
real estate to be safe? Will there be a day of reckoning
in
the near future?
One wouldn’t get that impression
from speaking with the luxury home agents in the area.
However, Gellens did concede
that the prices aren’t as wildly fluid as they
were last year. She said there is some buyer/seller resistance,
with
buyers being unwilling to pay anything the sellers demand.
Yet she doesn’t believe in the “balloon bust
theory.” She’s
very bullish on the coastal properties, and because of
the limited number available, she believes the prices
will sustain
and continue to increase.
If there is any place on the
planet where it is possible to maintain a healthy dose
of optimism, it is unquestionably
in
the town that “is a state of mind.” — Shana
K. Wilson
Ranch & Coast’s
Hot Properties
La Jolla is, was, and will always be one of the most luxurious
locales in the country. With coastline bluffs, proximity to
premier shopping, and views of the mighty Pacific, owning a
home is La Jolla is a step closer to attaining a sense of the
majestic. While most homes in La Jolla can certainly be qualified
as elegant, some are beyond words. Here are our top picks currently
on the market.
Casa de la Luna (above)
Built on two lots, Casa de la Luna, an 11,000 square-foot home,
offers every feature you could desire. San Diego Home/Garden
Lifestyles’ 21st annual Home of the Year, this home
has been recognized for its grand living in a cozy setting.
$12,000,000
Arlene Sacks
Willis Allen
858/922-3900
Villa Di Capri (above)
Escape to a private, gated coastal retreat high above the Pacific
where exceptional craftsmanship and exquisite materials blend
to create an estate of distinction and refinement.et on the
largest privately owned oceanfront parcel in San Diego County.
Bonnie
Adams
Coldwell Banker
858/459-3851
Via
Casa Alta
Dazzling views of the ocean, La Jolla Shores and the vity from
almost every room of this remodeled home. Over 20,303 square
feet, with a gorgeous pool. $5,750,000.
Maxine and Marti Gellens
Prudential California Realty
858/551-6630
Oceanfront Masterpiece
This magnificent oceanfront home boasts panoramic views of
sand, surf, evening lights from most rooms, glorious yard
including viewside pool.
Randy and Jo-an Upjohn
Prudential California Realty
858/551-7200 |
