I follow La Jolla inventory pretty closely, and to be honest I’m not seeing much change there. The only difference that I see now is that inventory is down from end of last summer, but I believe that is typical seasonal fluctuation.
In general, for the last three to four years La Jolla has seen a lot of places that come on the market, languish, and then are removed without selling. A small percent has gone into foreclosure, but the number of actual short sales and REOs is still probably less than 20% of the market. (SFRs, not counting the lower priced condos in UTC)
In the last several months, it does seem to me that we’ve seen a decline in ridiculously priced places. I’d guess that there are now enough comps that 2005-2006 prices seem silly even to the sellers.
