La Costa Valley (1,073 single-family homes) Annual Sales:
The new rule about getting profits tax-free went into effect in 1997, and it motivated people to move! The sales history of this house is an example of how it used to be – make a little money and be on your way:
But over the last 10-12 years, people stopped moving so much. Any of the original LCV homeowners were already empty-nesting, so it wasn’t the kids that kept them from moving. Rates were coming down a bit, and refinancing made it a little more affordable – and there wasn’t anywhere else to move locally that was better than what they had already.
Some may have thought that the 2007 buyer got left holding the bag. But he’s now listed for $2,085,000!
The problem with describing the overall market conditions by looking at the whole group of sales is that the newer-looking one-story homes on culdesacs will always sell for a premium, and you can’t say that about the others.
The crime of the century was committed at this house. At the end of 2021, the listing agent priced this house at $1,799,000, and then spooned it over to her flipper buddy for $1,650,000 without putting it on the open market. TWO MONTHS LATER, the flipper listed it for $2,895,000 and these sellers paid $3,250,000 in February 2022! Then they listed it for $3,299,000 last month and got it.
The best part of attractive pricing is that it helps to weather the demand dynamics. We’re not going to get the 22 offers we got last week, but 100+ people have seen the home, and offer #4 just arrived.
I’ll find someone to buy my $2,295,000 listing in La Costa Oaks, and it could be the last LCO listing of the year. It will mean that LCO sellers will be expecting at least $2-something in the 2023 selling season, which won’t feel like prices dropped much while buyers were on vacation.