Below is a graph that shows us where our real estate market is now and where it has been over the past 10 years (2000 through 2010). Each graph is for a particular city, including figures for single-family residential homes in Carmel, Monterey, Pacific Grove, Pebble Beach, and Seaside. We follow the number of home sales, the average home sale price, median home sale price, and the average days on market (DOM).
The variables indicated, help us see where we are at right now, what we can expect to purchase a home for, and how we can reasonably price our home for sale. For example, if my home was worth $1,000,000 in 2005 and the median sales price has decreased by 25% since 2005, then with all else remaining the same, I can expect to receive about $750,000 for my home today. On the same, and more encouraging, front, if a home that I want to buy was purchased for $1,000,000 in 2005 and the median sales price of homes in the area has decreased by 25%, then I know that $750,000 is a reasonable asking price from the seller.
Carmel:
Carmel, California Real Estate Market Trends; 2000 - 2010
Monterey:
Monterey, California Real Estate Market Trends; 2000 - 2010
Pacific Grove:
Pacific Grove, California Real Estate Market Trends; 2000 - 2010
Pebble Beach:
Peabble Beach, California Real Estate Market Trends; 2000 - 2010
Seaside:
Seaside, California Real Estate Market Trends; 2000 - 2010
The line graphs above show us where the real estate market on the Monterey Peninsula is today and where it has been over the past 10 years. I have the same statistics, including more detailed figures, in a spreadsheet format that I can EMAIL TO YOU UPON YOUR REQUEST.
Please enjoy this information and don’t hesitate to contact me to discuss it further. I look forward to your inquiries, our discussions, and helping you and your friends with your real estate needs.
Pacific Grove, CA – A common question that a Realtor is asked is “are we at the bottom?” Almost as commonly, I get asked, “when was the peak of the real estate market?” So today, and for the next couple days, I’m going to share some information about the Peaks and Pitfalls of the real estate market on the Monterey Peninsula.
Rather than generalizing the information I provide, which can be deceiving due to our unique micro-climates, I’m going to separate my reports by city. In order to adequately answer the two questions proposed in the preceding paragraph, I have to offer insight on a couple different variables. In answering the questions, we must know if we’re referring to sales volume (the total dollar amount of homes sold), sales price (the dollar amount of each home sold), or total number of sales. So I’m going to provide 4 figures: 1) Total Sales Volume, 2) Average Sales Price, 3) Median Sales Price, 4) Number of Homes Sold.
Today we will focus on single-family residential property Pacific Grove over the past 10 years.
The number of closed sales is an indicator of how active our real estate market is, how many people are interested in buying and selling property in our area. The chart above shows us that the peak in the number of closed sales of single-family residential homes in Pacific Grove was in 2003, with 191. That number decreased from 191, to 172, to 145, to 111, to 98 over the next four years, until finally bottoming out in the 5th year at 94 sales in 2008. The difference between 191 sales in 2003 versus 94 sales in 2008 is a 51% decrease. The number of sales jumped from 94 in 2008 to 118 in 2009 and 129 in 2010. This is an increase of 21% and 9% respectively, following the “pitfall” year of 2008.
Average and Median Sales Prices of real estate are indicators of the value of real estate in our area. Average and median sales prices appear to be directly related when studying the graph above. These figures topped out in 2005 at a median sales price “peak” of $882,500, and an average sales price “peak” of $1,044,438. It will difficult to tell until we have 2011 and 2012 results, but it seems that Median Sales Prices “pitfalled” in 2009 at $603,750. This is a 32% decrease from the peak in 2005. There is an increase of just over 4% in median sales price from 2009 to 2010.
Average sales price appears to still be descending, although if the past 10 years are a good indicator of what is to come, I expect the average sales price to rebound along with the median sales prices in 2011. Average sales price in Pacific Grove “pitfalled” in 2010 at $703,230. This is a 33% decrease from the peak in 2005.
Pacific Grove, CA - Total Sales Volume, 2000 - 2010 (MLS results)
The line-graph above shows the flow of Total Sales Volume (US Dollars) in Pacific Grove from 2000 through 2010. It took 4 years to get from a low of $73,508,644 in 2001, to a high of $151,443,551 in 2005 (52% increase). And 3 years to slide back down to $79,207,460 in 2008 (48% decrease). We saw an increase of 8% and 6% respectively over the next two years, through 2010.
In summary, 2005 was the “Peak” in Pacific Grove and 2008 was the “Pitfall.” It looks like things are on the rise. Some people are speculating a second dip in the market. I believe that 2011 and 2012 are very important years for real estate on the Monterey Peninsula. There is a limited supply of homes here, which differentiates us from places such as Las Vegas and Arizona. But the macro-outlook of the economy still has an effect on our market.
Please don’t hesitate to share your thoughts or questions. And as always, if you know anyone who could use my assistance in selling their home, please let me know.
El Dorado Realty Company 