La Jolla, a suburban portion of the larger city of San Diego, is one of the strongest housing markets in the United States today. La Jolla real estate was lucky enough to avoid some of the most detrimental effects of the nationwide economic recession and real estate downturn that began in the year two thousand eight, but still suffered some minor setbacks. These were perhaps most easily seen in the rates of foreclosure and home sales, both of which were affected adversely by the economy, albeit to an extent much less mild than that which gripped markets such as Las Vegas.
Houses in La Jolla are in fact considered to be near the top of the real estate market recovery, at least according to an August 19, 2009 article in the San Diego Union Tribune. The article, written by Roger Showley, stated that “The chief economist for the National Association of Realtors predicted yesterday that mortgage interest rates will rise to 6 percent next year but saw no evidence of a “double dip” in housing price declines…He noted that demand locally is strong enough that there is just a 2 1/2 month inventory of homes for sale. With construction running at a sluggish pace, he said a shortage could develop next year as buying interest picks up.”
The Voice of San Diego published a similar piece on August 25, 2009, which found that “a hint came Tuesday that the local housing market is firming.” The author of the piece, Kelly Bennett, noted that “Local home prices rose in June, the first month-to-month increase in more than two and a half years, according to the newest Standard & Poors/Case-Shiller index.” Further hope for real estate in La Jolla is found in an August 21, 2009 article in the online edition of the San Diego News Network, which reported that “An expert economist sees good things for the San Diego housing market. Lawrence Yun, chief economist for the National Association of Realtors, said the local market is buoyed by a tight housing inventory and federal tax incentives.”