Stretching for seven miles along San Diego’s curving coastline, La Jolla is a California beach beauty lolling in the lap of luxury.
La Jolla, whose moneyed moniker comes from the Spanish la joya or the jewel, has a rich history.
When California became a state in 1850, La Jolla was nothing more than 60 lots. Through the decades, it grew extremely affluent, and by the 1890s it had become a thriving resort area and an art colony.
The beaches and ocean views aside, the neighborhood’s most prominent feature is the 29-foot-high Christian cross that rises from Mount Soledad, an 822-foot-tall hill that’s one of the highest points in the city.
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The community is home to the University of California San Diego, the Salk Institute, the Scripps Institution of Oceanography and The Scripps Research Institute.
La Jolla, whose population in the 2010 Census nearly topped 47,000, is made up of several sections, including The Farms, The Shores, The Village, Beach Barber Tract, Bird Rock, Country Club and Muirlands. It is the only community within San Diego distinguished enough to possess its own ZIP Code–92037.
Boundaries
Although the U.S. Postal Service defines the boundaries of the neighborhood as any property with the 92037 ZIP Code, the city classifies it as a smaller area, starting at Pacific Beach on the southwest and following the Pacific Ocean shoreline heading northward through Torrey Pines State National Reserve and ending at Del Mar, California. Gilman Drive and Interstate 5 mark the eastern side, which runs north to the University of California San Diego.
Price Range
The highest recorded price for a single-family house, $24 million for an expansive 1.79-acre compound in La Jolla Shores, was recorded on June 20.
Single-family homes, however, tend to be priced at $2 million to $3 million, and townhouses and condos are $800,000 to $900,000, according to Joy Bender, a real estate agent for Pacific Sotheby’s International Realty.
An active listing search of single-family homes in late July showed prices ranging from $950,000 to $29.5 million, said Vincent Crudo, a real estate professional at Willis Allen Real Estate. He added that the average price then was $4.5 million and the median $3.2 million.
#ICYMI: A beachfront home with a blue dome seeks nearly $27 million in #LaJolla:https://t.co/Y3Z0S3Glx6 pic.twitter.com/eIsdXhzIoZ
— Mansion Global (@MansionGlobal) April 4, 2016
Of the 43 homes under contract during that same period, Mr. Crudo found a high of $12 million, a low of $1.2 million, an average of $2.6 million and a median price of $1.9 million.
"Yes, it’s high at the high-end," he said, adding that 40% of buyers pay all cash, "but can you get a good house at $2.5 million? Absolutely. Can you get a good one for $1.5 million? Yes."
The $1.5 million, Ms. Bender, added, would get you a "cute storybook house" that needs a lot of tender loving care.
On the condo side, in late July, there were 77 units on the market, Mr. Crudo said. They ranged in price from $325,000 for a 400-square-foot studio close to the beach to $7.5 million for a recently renovated two-bedroom penthouse in The Village.
Housing Stock
There’s a wide variety of styles of single-family homes ranging from Spanish Mediterranean to contemporary. The properties are small; 1 to 2 acres of land is considered large in La Jolla.
"Mediterranean used to be the predominant style," Mr. Crudo said. "But buyers today want the California coastal look, a kind of Cape Cod with an open floor plan. We’re a beach community, so they want something with a light, bright vibe."
Condos typically are in small, mid-rise buildings of four to 10 stories.
"There are only a couple of high-rises of 15 to 20 stories," Mr. Crudo said, "because people covet the views. They don’t want to do anything to obstruct them."
What Makes It Unique
Ms. Bender said La Jolla more than lives up to its nickname, Jewel City. "It’s like the Beverly Hills of San Diego," she said. "It’s cosmopolitan."
She likes the flavor of "the cute, downtown smaller-label boutiques that sell things you can’t find in big-box stores" and the variety of restaurants—George’s at the Cove, which serves California Modern cuisine; and seafood spots Herringbone La Jolla and Eddie V’s Prime Seafood.
Mr. Crudo, who is a local, said La Jolla’s old, established character and an immense new investment in infrastructure—such as the recent $600-million renovation and expansion of the Westfield UTC mall—are what sets it apart. His favorite spots include THE LOT, a fine-dining restaurant/movie venue; the award-winning NINE-TEN Restaurant & Bar in the historic Grande Colonial hotel; and the Peter Lik Gallery.
"La Jolla is not as big as Los Angeles or San Francisco," he said, "but it’s a better quality of life. And compared with any coastal luxury market in California, pricewise, we are a bargain."
He enjoys going to La Jolla Cove, a small beach surrounded by sandstone cliffs, to watch the seals swim in. "It’s a spectacle," he said.
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Luxury Amenities
In addition to the University of California San Diego, the neighborhood has several private, college-prep schools, including The Bishop’s School (grades six through 12) and the Gillispie School (for students ages 2 through sixth grade). La Jolla High School, which is part of the San Diego public school district, is on the "best" lists of Newsweek and U.S. News.
The Museum of Contemporary Art, which has a collection of over 3,500 American and European works from 1950 to the present, hosts a continuing series of Downtown after Sundown festive events.
La Jolla Museum of Contemporary Art
Matthew Field / WikipediaThe neighborhood has two golf courses—Torrey Pines Golf Course and La Jolla Country Club—and the exclusive, award-winning La Jolla Beach & Tennis Club.
The tennis club is so popular, Ms. Bender said, that there’s a three-year waiting list for memberships.
In addition to luxe beachy brands like Kate Spade, Tommy Bahama and Lululemon Athletica, La Jolla has a number of iconic one-off shops, including Sigi’s Boutique, which offers European and U.S. fashions from designers like Brunello Cucinelli and Jill McGowan; Adelaide’s, a flower and home-goods purveyor; and the Ascot Shop, which features fashions for men.
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Who Lives There
The neighborhood, home to Qualcomm and a slew of biotech companies, attracts families, business executives and entrepreneurs as well as second-home buyers, who make up a small percentage of sales.
"I’ve had some clients who own six or seven houses and who only live here a week or a month," Ms. Bender said, adding that she’s had clients from Florida as well as Phoenix, Tucson, Seattle, New York City and Park City, Utah. "And some rent them out."
Such long-term rental rates, she added, range from $3,200 per month for a two-bedroom condo and $8,000 for a "nice house" to $12,000 to $15,000 for a luxury property.
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Notable Residents
Throughout its history, La Jolla has been home to a variety of noted authors, scientists, sports figures, executives and performers, including Gregory Peck, Tucker Carlson, Raquel Welch, Raymond Chandler, Deepak Chopra, Theodor "Dr. Seuss" Geisel and Anne Rice.
Arte Moreno, the owner of the Los Angeles Angels baseball team, has a home in La Jolla.
Ms. Bender said that 2012 GOP Presidential Nominee Mitt Romney, who has a house in the Beach Barber Tract, is currently one of the community’s well-known celebrities. "We see him all around town," she said, adding that the home of Gateway founder Ted Waitt is on the market now.
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Outlook
Noting that the market has been on the upswing for the last few years, Ms. Bender said she expects the trend to continue. "With limited inventory and high demand for second homes, our market outlook is positive," she said.
"I just listed a first-floor, two-bedroom, 1,461-square-foot condo for the record-breaking price per square foot of $646.82—it’s ambitiously priced at $945,000— and in the first 24 hours, I’ve already had requests for two showings."
Mr. Crudo, too, said the outlook is promising. "I still see a good run, even in the higher stuff in the next couple of years," he said. "As interest rates rise, prices could become flatter, which would give people more room to negotiate."