The Covenant’s leading concerns (high-speed internet, a health club/pool center, and Art Jury reforms) all lead to the issue of home values. According to Trulia, an online residential real estate site for buyers/sellers and real estate professionals, home prices in the 92067 zip code outside the Covenant are higher than within the Covenant.
The median sales price for homes in ZIP code 92067 for June 14th to Sept. 14th was $2,125,000. This represents a decline of 5.1%, or $115,000, compared to the prior quarter and a decrease of 0.9% compared to the prior year. Sales prices have appreciated 28.9% over the last 5 years in 92067.
Between June 14th to Sept. 14th, the median sales price for homes in the Covenant was at $2,000,000. This is an increase of 3.8% or $75,000 compared to the prior quarter and an increase of 6.1% to the prior year. Sales prices have appreciated 48.1% over the last 5 years in the Covenant.
As of today however, the median sales price for 92067 remains 6.25% higher than the median sales price for homes within the Covenant.
Average listing price for homes in ZIP code 92067 was $4,470,032 for the week ending Sept. 24, which represents a decline of 1.4%, or $62,981 compared to the prior week and a decline of 3.3%, or $150,430, compared to the week ending Sept. 3rd.
In contrast, average listing price for homes for the Covenant was $4,223,598 for the week ending Sept. 24th, representing a decline of 3.3%, or $145,294 compared to the prior week and a decline of 4.3%, or $191,616 compared to the week ending Sept. 3rd.
Average price per square foot for homes in 92067 was $508 in the most recent quarter, which is 0.20% higher than the average price per square foot for homes in Rancho Santa Fe at $507 per square foot.
However, Covenant home values are still moving closer to the rest of the 92067 zip code. Five years ago, the average price per square foot for homes in 92067 was $464 while Rancho Santa Fe alone was at $436. While the gap has closed recently, it may not hold without a modernization of technological infrastructure in the Covenant.
Homes within the Covenant had a 5.5% increase in value per square foot from last year, while 92067 as a whole had a decline of 0.6% in the same time frame.
Bringing high-speed internet and better cellular coverage to homes within the Covenant will likely give a boost to property values. The Association is currently in talks with service providers and will obtain proposals in the coming months.
A health club and pool center is also projected to increase property values, residents will be voting from Oct. 20th to Nov. 19th to support or oppose spending for professional planning.
The Covenant Design Review Committee (CDRC, formerly known as the Art Jury) has been a large hurdle for those wanting to make home renovations and start new building projects. However, the CDRC has been going through several reforms to become more efficient and transparent since the new Association Board took over earlier this year. Meetings are now open to the public, and applicants seeking approval for projects will be present during CDRC deliberations. The CDRC has also cut down on the time it takes for applicants to go through the approval process (2-3 weeks) and reduced the number of times an application has to be reviewed.
Should both the health club and tech infrastructure projects come to fruition, and the CDRC become less of an obstacle, the Covenant could see a significant increase in home values.