From watching the La Jolla market, I can tell you that there is plenty of craziness and only a couple of people pricing their houses realistically. And btw, that house on lamplight you refer to was on the market for months before they bought it at $1.8m. With a bunch of open houses and lots of marketing, so I can guarantee you they didn’t get it at “below market”. More likely the seller popped a champagne bottle when it finally sold.
Here’s another house that is similar. Bought in 2005 for 1,950,000 and now wants to sell for $2.3m to $2.6m. (Hah! Lots of luck!)
They bought for $2.9m in 2006 and have been trying to sell at $2.65m (a $250k loss not counting fees and costs) with no takers for months. So, I don’t think you can say the La Jolla market is going up.
