This is a great time to buy in La Jolla! The market has slowed to a normal market so there aren't multiple offers to worry about and sellers are showing some flexibility when it comes to price.Inventory is increasing, and prices are generally falling in the bubble markets.
Is it a good time to buy?
It certainly is a better environment to buy now then at the peak (generally at the end of the summer) because there is indeed more inventory available and lowball offers might be accepted by certain sellers. However, prices will continue to decline in the bubble markets for many years to come. The typical housing unit located in a bubble market will decline more then 20% in real dollars [inflation adjusted] over the course of 3 years from the peak price.
Many bubble markets will experience real price declines much greater then 20%. Some markets may experience price declines of 60% in real dollars over the next 3 years. Of course in some markets prices may decline for more then 3 years.
It is very hard to predict when the real dollar price bottom will occur in a bubble market. But in most bubble markets we are a mere 4 or 5 months from the peak price. It will take many years for prices to reach bottom. There are still large price declines ahead in the bubble markets. Now is NOT the time to buy in the bubble markets. Be patient. Prices will continue to fall.