I heard an interesting comment the other day on broker caravan.
The listing agent said, “Maybe we’re all undervalued?”, as he sat on his $6,000,000 listing with nobody else in attendance.
If you judge it by the weather, he could have a point. If we have the best weather in the U.S.A., then we should have the highest-priced real estate.
It probably means that rich folks from around the world who are retiring will be giving strong consideration to the San Diego area. Retirees are going to be drawn to where the grandkids live first, and if the ‘kids are in the general Southern California vicinity, then San Diego might be considered for retirement.
Either that is happening, and/or our employment base is stronger than ever.
Two days ago, we saw that the NSDCC sales this year between January 1st and June 15th were 7% higher than last year.
NSDCC is the coastal area between La Jolla and Carlsbad that has a population of around 300,000 people. Carlsbad makes up about a third of the population and sales in the area, and realtors and buyers alike consider it a quality lower-priced alternative to the affluent Encinitas-La Jolla stretch.
Here is the breakdown of those January 1st-June 15th sales:
|Category by Area|
|Carlsbad # of New Listings|
|Carlsbad # of Closed Sales|
|Carlsbad Median SP|
|La Jolla-Enc # of New Listings|
|La Jolla-Enc # of Closed Sales|
|La Jolla-Enc Median SP|
The number of sales in Carlsbad corresponded with a similar increase in listings. But look at the higher end market – the year-over-year sales were 8% higher, in spite of 2% fewer listings! The median price increased nicely too.
This is an affluent area, and real estate is booming – could it be undervalued?