What’s Selling in Monterey; April 27, 2011

What’s selling this year in Monterey, CA?  Let’s take a look at real estate figures in Monterey, dating back to January 1, 2011…

Single-family residential homes:

• # Active: 87
• # Sold: 38
• Absorption Rate: 9.5 per month
• Current Inventory: 9 months
• Average List Price: $580,797
• Average Sales Price: $546,792 (-6%)
• Median Sales Price: $451,500
• Average Days on Market: 127

Townhouse/Condo:

• # Active: 18
• # Sold: 16
• Absorption Rate: 4 per month
• Current Inventory: 4.5 months
• Average List Price: $292,275
• Average Sales Price: $283,331 (-3%)
• Median Sales Price: $251,450
• Average Days on Market: 136

About 9 single-family residential homes are selling per month in Monterey.  Homes are selling in just under 130 days for about 6% less than their asking price.  9 months of available inventory tells us that we’re still in a buyer’s market.

Condos and townhomes seemed to be more appropriately priced, selling for only 3% less than their asking price.

Now (2010) vs. the most recent Peak of the Real Estate Market – Carmel; April 7, 2011

 

Carmel, CA; Annual Real Estate Sales Figures

 

Carmel, CA –

Real estate markets are cyclical.  Historically, an entire cycle lasts 15 years.  In Carmel, we saw our peak 7 years ago in 2004 and 2005.  We are at the bottom of the trough, seeing current figures that resemble those of 2002 and 2003.

There were drastic increases in the market environment in 2004, which led to fearfully inflated market conditions from 2005 through 2007.  A steep decline in real estate ensued, leaving us in our current market, which I expect to last for a couple more years.

It’s a great time to buy, but also a good time to sell for those who’s needs have changed and who still have some equity in their current property.  You may be selling low, but you have the opportunity to buy lower, getting more for your money.

Number of Closed Sales:

• 2004 (peak) = 269
• 2010 = 167
• Difference = -38%

Total Sales Volume:

• 2005 (peak) = $435,718,251
• 2010 = 221,469,840
• Difference = -49%

Average Sales Price:

• 2005 (peak) = $1,962,694
• 2010 = $1,326,166
• Difference = -32%

 

What’s Selling in Pacific Grove, CA; March 25, 2011

Pacific Grove, CA –

37 homes have sold in Pacific Grove since the beginning of the year.  That’s approximately 12 homes per month.  There are currently 70 homes for sale in Pacific Grove.  With 12 homes selling per month, PG has just under 6 months of inventory.  This is VERY exciting news for the area.

As I’ve shared before, 6 months of inventory is an indicator of a neutral real estate market.  Below 6 months is a sign of a “seller’s market“, above 6 months tells us that we’re in a “buyer’s market.”

For the first time since the first quarter of 2008, the Pacific Grove real estate market appears to stepped over the hump into “Sellersville.”  The market is still very delicate though.  Homes that are not priced properly sit on the market unsold until the seller is willing to adjust the price as necessary to attract today’s savvy buyers.

Here’s why I believe that Pacific Grove is seeing such progress in its real estate market: 1) It’s a great place to visit.  2) It’s scenery is beautiful. 3) Its people are friendly. 4) Its schools are great. 5) Its homes are priced affordably. 6) Its a great place for a family, for empty-nesters, for retired couples, and for tourists.

Pacific Grove fits right in between the lack of a high-quality school district in Monterey and the presence of a high-quality price point in Carmel, making it the perfect place for many people.

The average sales price of the homes that have sold since the beginning of the year is $643,238.  This is almost 97% of the average asking price, which was $665,917.  The median sales price for these homes is $$535k, versus a median asking price of $550k.  Again, a measly 3% difference.  DOM (average days on market) for the homes sold in Pacific Grove this year is 154.

In conclusion, the hot market in Pacific Grove are homes that are priced between $500k and $700k.  Such homes are selling in just over 5 months.

Please feel free to share your thoughts or questions below.  I look forward to our discussion.

Happy Friday!  Finish the week up strong and have a wonderful weekend!

~ Zach

What’s Selling in Pebble Beach, CA; March 15, 2011

Pebble Beach, CA – 15 single-family residential properties have sold in Pebble Beach since the beginning of the year.  The average sales price was $3,453,200.  The average list price was $3,931,400.  This is an 87% achievement rate.  Achievement rate is the percent of asking price that is achieved upon sale.

The highest priced property sold was $8,408,000, lowest priced was $900,000, median price was $3,000,000, the PPSF (average price per square foot) was $801.43, and the DOM (average days on market) was 208.  With 104 single-family homes currently active in Pebble Beach, and although 1.5 months is too short of a time period to give us a accurate figure, we’re currently looking at an attrition rate of 10.4 months.  This means we have about 10 months of inventory in Pebble Beach.  6 months of inventory is considered a balanced market.  Above 6 months puts us in a “buyer’s market” condition.

Feel free to post any comments or questions.  I look forward to your input.

~ Zach