La Jolla Real Estate
La
Jolla real estate is a highly sought after commodity.
The La Jolla area occupies about 20 square miles, and has
a population of about 35,000, leaving precious little room for additional La Jolla Real Estate.
La Jolla provides tremendous residential real estate value and appreciation potential. In its July 2002 issue, the Robb Report designated La Jolla, the "jewel" of San Diego, as the best place to live in America. It is one of the wealthiest communities in the entire USA.
In La Jolla Real Estate, you'll find small beach cottages and elaborate custom estates with up to five acres of land. Prices vary from street to street. View home sites are the norm in La Jolla. The wooded hillsides that rise to around 1000 feet above sea level offer many spectacular views with prices for these views costing 10% to 50% more. There is virtually no vacant land left to develop in La Jolla and the property values are high and getting higher. On occasion, older existing homes are being purchased, and then demolished to allow a brand new home to be erected on the site.
La Jolla was one of the earliest colonies in the San Diego area in the early 1800's. In 1886, Frank Botsford, referred to as the "father" of La Jolla, purchased the chaparral and sage covered land without realizing it would be very difficult to find a good, reliable source of drinking water. He decided to sell, and a public auction was held. The La Jolla real estate sold for what amounted to only $1.25 an acre ... land which would be more than $2 million an acre today!
Today, a 92037 zip code is one of the most sought after in the U.S. At the 2000 census the median home price reached $663,000, but in the four short years since, the median price of La Jolla real estate has more than doubled - in April of 2004, DataQuick Information Systems reported a median of more than $1.2 million. Average property values are measured in the millions and real estate gets snapped up quickly. Home prices range from $900,000 to $12 million. One specific example of dramatic property appreciation in La Jolla: a home in the Shores area that was purchased in 1976 for $189,000, sold in May 2004 for $3.15 million - definitely proof that a buy and hold approach when it comes to California real estate in general, and La Jolla real estate in particular, is prudent practice.
Many people ask how they can be confident they are paying a fair price for a property. A home is worth what someone will pay for it. Everything else is an estimate of value. To determine a property's value, most people turn to either an appraisal or a comparative market analysis. An appraisal is a certified appraiser's estimate amenities, energy efficiency, the quality of the of the value of a home at a given point in time. To make their determination, appraisers consider square footage, construction quality, design, floor plan, neighborhood and availability of transportation, shopping and schools. Appraisers also take lot size, topography, view and landscaping into account. A comparative market analysis is an informal estimate of market value, based on comparable sales in the neighborhood, performed by a La Jolla real estate agent or broker. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available at local recorder's or assessor's offices, through private companies or on the Internet.
There are many permanent local residents, and there are many others who have a second or investment property in the area. Investing in real estate can be part of a solid financial strategy. The most important considerations are:
1) Know the market...what is happening in the area and economy
2) Know how to analyze a property
3) Know your limits (dollar and risk wise)
It's an exciting time in the San Diego market. With a reputation for integrity and service since 1914, The Willis Allen Company would welcome the opportunity to help you find the home of your dreams. For further information, please call us at 858.459.4033. Our knowledgeable and professional team of sales associates are supported from six strategically located branch offices throughout San Diego County.
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