What’s Selling on the Monterey Peninsula?; April 18, 2011

Monterey, CA –

We are three-and-a-half months into the year (2011).  Everyone is sitting on the edge of their seat, anticipating a perspective; some sort of idea as to where we are in this economic roller coaster.  The housing market plays a huge roll in our position.  I try to share information in this blog that helps you get a feel for where you can position yourself on your seat…on the edge or comfortably against the back-rest.

Monterey Peninsula

Today I’m reporting the status of single-family residential real estate sales year-to-date on the Monterey Peninsula (Carmel, Monterey, Pacific Grove, Pebble Beach).  Comparing the same time period in 2010 to 2011 is a nice way see where we were and where we’re going.  As you can see below, inventory is up 26%, number of sales is down 29%, Foreclosures are up 26%, Short Sales are up 47%, average and median sales prices have remained steady, and average days on market (DOM) has increased by 13%.

	2010	2011	%Difference
New Listings	322	435	26%
Sold Listings	148	115	-29%
Foreclosed Listings	31	42	26%
Short Sale Listings	31	59	47%
Avg Sales Price	$1,237,553	$1,245,040	1%
Median Sales Price	$797,500	$800,000	0%
Avg DOM	114	131	13%

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