As we neared the end of the first quarter of 2010, I spent some time reviewing the residential real estate market in La Jolla. As we have watched the overall market dip and then show signs of recovery, the high-end neighborhoods, such as La Jolla, have continued to struggle. While programs such as FHA and the Federal Tax Credit have helped to sell lower-cost homes, financing has not been easily available for loans above the conforming level, leaving buyers unable or unwilling to make large purchases. To get a closer look, I have reviewed numbers for La Jolla for the close of 2009 and the start of 2010, from which we can draw some conclusions that will help us prepare for the spring months, which often prove to be some of the most active real estate months of the year. In the La Jolla neighborhoods, we watched 2009 come to a close with a year-to-date median sales price below that of 2008 for detached homes, but not by far. We ended 2008 with a year-to-date median price of $1,625,000, and we ended 2009 with a year-to-date median price of $1,450,000, a difference of $175,000. Year-to-date, sold listings were up significantly, from 199 in 2008 to 244 in 2009, although that was accompanied by an increase of average days on the market. Year-to-date in 2008, homes spent 86 days on the market, while in 2009 they spent 116 days on the market. Across the county, this was a trend in 2009: Decreased median prices, longer terms on the market and an increase in sales. What I find most interesting about the La Jolla area, though, is that while many high-end neighborhoods sold very few homes during 2009, La Jolla actually outsold the number of homes sold the previous year. This drives home the point that La Jolla will remain desirable no matter how big a hit the real estate market takes. So what have we seen thus far in 2010? As is very typical in the real estate market, especially in the high-end lately, we saw a big lack of activity in January and February of 2010. Just as sports and nature have their seasons, so does real estate. Sold listings dropped from 28 in December to 11 in January, then back up just slightly to 13 in February. What we can be encouraged by, however, is the median price, which jumped from $1,325,000 in December to $1,562,500 in January, through February where we ended the month with a median price of $1,528,650. This actually leaves us at a higher median price, year-to-date, than this time last year; something to celebrate, seeing as the first quarter is not typically the best. The year-to-date median sales price for detached homes in La Jolla as of February 2010 is $1,545,575 as compared to year-to-date for 2009, which was $1,525,000. Where La Jolla took the hardest hit in the past three months is within the median price for single-family attached homes. We ended 2009 with a median price for December of $525,000. Not much changed in January of 2010, with a median price of $522,000, but at the close of February, the price fell drastically to $365,000. As would be predicted, the number of sold listings fell to 21 as compared to 31 for the month of December. For sellers, it can only go up from here. March marked the start of the “real estate season,” and with that, we should see an increase in sold listings and we hope to see the median price remain steady. For buyers, however, it is a different story. Qualifying for financing has remained difficult at such a high price point. Since the “financial crisis,” jumbo loans have been more difficult to come by and often require a down payment of 25 percent or more. However, there are positive signs for buyers looking to purchase in “The Jewel” of America’s finest city, including lower rates, easier terms and the relaxing of requirements for jumbo loans. As always, consult your REALTOR®, who can help guide you with your lending options.