La Jolla Median House Price Surges to $1.78M

A La Jolla beach view requires bigger checks this summer than last with the median house price rising to $1.78 million, part of an upward trend in San Diego County real estate costs.

“There is inventory on the market—we see new inventory every day,” Linda Lee, board president of the Greater San Diego Association of Realtors, said in a statement. “But most homes, especially the ones priced appropriately, aren’t on the market for very long."

The median price of existing San Diego County homes increased by 3 percent to $481,000 in June, a jump of more than 23 percent from a year ago. Through the first half of 2013, prices are up nearly 20 percent from this time last year.

In June 2012, the median price of a La Jolla home was $1,287,500—almost half a million dollars less than what it is now.

San Diego County condo and townhome prices have also seen a significant increase over the past year, leaping 34 percent from June last year to today's median price of $301,000.

Could this be a bubble?

While Lee gave a definitive 'no'—"We are not headed toward another housing bubble," she said—others aren't so sure about nationwide trends.

"The home price growth is too fast, and only additional supply from new homebuilding can moderate future price growth," said Lawrence Yun, the chief economist for the National Association of Realtors, in a CNN Money article last month.

Lee pushed back against fears that the rapidly rising prices are a sign of bubble by pointing to the types of buyers snatching up homes now: all cash or creditworthy.

"There’s a great deal of cash buyers purchasing homes and everyone else is well qualified," Lee said. "The banks continue to be very careful about who they’re lending money to and that’s a significant change.”

Gary Thomas, the president of the National Association of Realtors, seems to agree.

"The boom period was marked by easy credit and overbuilding, but today we have tight mortgage credit and widespread shortages of homes for sale," he told CNN Money.

La Jolla Home Sales By the Numbers
ZIP code: 92037

• Homes sold (June): 37
• Homes sold (Year to Date): 182
• Average days on market (June): 64
• Average days on market (YTD): 69
• Median price (June): $1,178,000
• Median price (YTD): $1,525,000