The one thing to remember about the really primo areas of Del Mar and La Jolla is that, relatively speaking, they didn’t enjoy the massive runup in pricing that the lower price ranges did.
The areas on the bottom that are getting hurt the most also increased by the most, percentage wise.
Some of those bottom end neighborhood increased by nearly 400%. In contrast, La Jolla and Del Mar areas increased a lot, but not 400% worth. More like 250% or so.
Unless these areas break the pattern that has prevailed so far in past cycles, they’ll also correct quite a bit, although the percentage corrections won’t be as drastic as the lower priced markets.
If a 1,000 SqFt house in Barrio Logan bottoms out at $120k, the same home in La Jolla won’t be selling for $900k. It’ll end up being a lot closer to $500k because the relationship between Barrio Logan and La Jolla has remained relatively consistent over the years.
