Nick Rogers
If you’re thinking about buying or selling a home in La Jolla, you’ve probably heard the term “absorption rate.” But what does it mean, and how does it affect you?
Let’s keep it simple: what is absorption rate?
Absorption rate simply tells us how quickly homes are selling compared to how many are available. It’s a percentage that shows whether it’s a buyer’s or seller’s market.
Calculating the absorption rate involves dividing the number of homes sold in a recent period (usually the last month) by the total number of homes currently listed for sale. This percentage gives you a clear snapshot of how active or competitive the market is.
Here’s a quick and easy guide:
Below 15%: Buyer’s Market (Lots of homes to choose from, slower sales)
15–20%: Balanced Market (Good mix of homes and buyers)
Above 20%: Seller’s Market (Homes sell quickly, strong competition)
What’s happening right now in La Jolla?
In the past month, 24 single-family homes were sold in La Jolla, and right now, there are 74 homes actively listed for sale. This puts La Jolla firmly into a strong seller’s market, with about 32% of homes selling quickly.
What does a strong seller’s market mean for you?
If you’re selling:
This is great news! There’s a good chance your home will sell fast, maybe even with multiple offers. It’s a perfect opportunity to get the most value from your home.
Consider staging your home or making small improvements to stand out even more and maximize your sale price.
If you’re buying:
The market is competitive. Homes are selling fast, so you’ll want to be prepared. Getting pre-approved for a mortgage, acting quickly, and making strong offers will give you an advantage.
Stay flexible and open-minded. Being willing to compromise slightly on certain home features can help you secure a great property more quickly.
Why should you keep an eye on the absorption rate?
Knowing the absorption rate helps you set realistic expectations. Sellers can price their homes strategically, and buyers can better prepare for competition.
La Jolla continues to be highly desirable, with its beautiful beaches, upscale dining, excellent schools, and vibrant community. This sustained appeal contributes to its strong real estate market. Whether you’re looking to move soon or planning for the future, understanding local market trends is key.
Thinking about your next move in La Jolla? Let’s chat—I’m here to make the process easy and clear.