As the second quarter of 2010 wound down, it looked like the real estate market’s high end, specifically in La Jolla, is still a bit of a roller coaster ride. Traditionally, spring is a more active real estate season than winter, but while lower-cost homes sales were helped by the Federal Tax Credit, financing challenges for loans above the conforming level have still discouraged buyers at the high end. However, gradually it’s looking like at least in the detached home market buyers are gaining more confidence — and financing — with sales and prices beginning to rebound by the end of May. La Jolla’s attached home market declined a bit, as sold listings, which had been 29 in March, dropped to 24 in April, and again to 18 in May. The median home price between April and May remained the same at $530,000, but that number is considerably less than the March median price of $565,000. Year to date, sales are at 93 in the attached market, an increase from 88 the previous year, when the median price for attached homes in La Jolla was $562,000. And, on the bright side, it took less time to sell these attached homes. On average, they were on the market for 52 days in May 2010, while it took 89 days to make a sale in May 2009. Looking at the more expensive detached home market, we find April listed sales down to 17 from 27 the previous month, but then rebounding in May to 25. The median price in April sunk to $1,005,000, compared to $1.4 million just the month before and $1.5 million the year before. However, in May, the median price climbed to $1.3 million, an increase, but considerably less than May 2009, when the median price of a detached home in La Jolla was $1.7 million. Year to date, sales of detached homes in La Jolla reached 96, about the same as the year before when there were sales of 99 listings. Of course, with lower prices, it took less time for the homes to move. At the end of last quarter, the average number of days spent on the market was 107. In April that number dropped to 95. With the increase in prices in May, the average number of days on the market shot up to 127. What is the takeaway from these figures? While from month to month both sales listings and median prices are changeable, if you look from today to this time last year, sales are pretty consistent. La Jolla continues to make good on its reputation as a jewel in the crown of San Diego. So, how is La Jolla faring compared with San Diego County in general? We’ve been hearing a lot about how the county is one of the nation’s bright spots in the real estate market, and, indeed, the market appears to be in stabilization mode, and particularly solid at the entry level. So, it’s no surprise that the sales numbers are far better for the rest of the county in general than for La Jolla as we end the second quarter of 2010. We find that total listings of attached homes sold in May (1,128) were up 21 percent from April (932) and a tremendous 24.6 percent from the year before (905). Detached homes also fared well, with a 20 percent increase (2,017) in May compared with April (1,681), and a 13 percent increase from May 2009 (1,786). These gains were, of course, tied to the federal homebuyer tax credits, which ended May 31, so it will be interesting to see how the June numbers look when they’re released. Of course, the California homebuyer tax credit is still in place so we may continue to see sales increase as home buyers request these credits from the California Franchise Tax Board. In La Jolla, though, the high price point of homes in the area will keep sales trends uncertain, so it’s worth taking the long view when it comes to value. One of the sticking points for buyers right now is that jumbo loans remain difficult to acquire, and lenders have often boosted down payment levels to 25 percent or more. But interest rates remain historically low and we’re starting to see some relaxing of requirements at the jumbo loan level. If you have questions about home buying in La Jolla, as always, consult your REALTOR,® who can help guide you with your lending options. — Mark Marquez is the 2010 president for the San Diego Association of REALTORS®.