Number of Homes For Sale vs. Sold in Pacific Grove, CA
The chart above shows us how many homes are for sale compared to how many homes sold in each month over the past 12 months. We are able to derive the state of the market as a buyer’s or seller’s market, and the amount of activity that’s taking place in the Pacific Grove Real Estate market. We can also determine when the most sales activity is taking place and the direction that the market activity is headed.
One indication of a neutral real estate market is having 6 months of inventory. More than 6 months of inventory is an indicator of a buyer’s market and less than 6 months is an indicator of a seller’s market. The number of months of inventory can be determined by taking the average number of homes selling per month and dividing that amount by the number of properties currently for sale. In this instance, there are about 12 months of inventory.
We see a spike in sales in June and August, with July following closely. We are now in a downward trend, moving into the end of the year which is traditionally slower for home sales.
Homes for sale in Pacific Grove number 88. With approximately 16 homes selling per month in Pacific Grove, there are about 5.5 months of inventory. This is a great sign, indicating a seller’s market in Pacific Grove. Achievement rate, percentage of asking price attained in sale, is healthy at 93%. And homes are selling in just over 2 months. I’m looking for Pacific Grove to have a strong Summer.
City Pebble Beach, CA
Dates Analyzed June 29 through July 6
Property Type Single-Family Residential
# of Homes For Sale 110
Avg List Price $3,411,285
Median List Price $1,996,500
# of Homes Sold 3
Avg Asking Price $1,781,633
Avg Sales Price $1,492,333
Achievement Rate 84%
Median Sales Price $1,525,000
Avg Days on Market 294
Notes There are currently 9 months of inventory in Pebble Beach. 84% of asking price is being attained. The average sales price of homes sold in Pebble Beach is almost 1.5 million dollars.
Homes are selling in approximately 3 months in Carmel. This relatively fast under these market conditions. The average sales price is over 2 million dollars. But with approximately 16 properties selling per month and 171 active listings, there are about 10 months of inventory. 6 months of inventory is a balanced real estate market. We are in a buyer’s market.
My pricing strategy goes like this; “a properly priced home is practically sold.” Price trumps all other factors, including marketing approaches, home conditions, market competitiveness, and sales approach. I’d like to be able to tell you that I do a series of mission-impossible-fancy-shmancy-knock-your-socks-off-super-top-secret-ninja moves to sell your home, but that just wouldn’t be true. I do as much marketing as any agent can do; open-houses, web, print, etc. But price is king and my expertise is in determining the sales price that the current market will bear.
Sell Your House!
Pricing your home at its market value gets it sold quickly, which allows you to move on with your plans without the stress and agony of dealing with what you’re leaving behind. Some agents like to pad their listing prices, adding 5 to 10 percent, to allow room for negotiation. Negotiating price is an expected element of today’s transactions. But let me give you a couple reasons why that may not be the best strategy; 1) whether you realize it or not, as a seller who naturally wants the most money possible for their home, you begin to think that some of that padded amount will end up in your pocket. I hate the be the bubble-burster, but it’s not gonna happen. 2) A padded listing creates a real pricing advantage for homes that come on the market priced at their fair market value. A home that’s listed at market value stands out from the competition. Compared to all the overpriced options, it strikes buyers as a rare value and leads to traffic and a high number of showings by other agents.
The goal of a CMA (Current Market Analysis) is to determine a demonstrated indication of the true current value of your home. It’s not to develop an opinion of what we may consider a reasonable value. We’re working with facts to arrive at an objective, accurate valuation.
If you, or someone you know, is thinking about selling a home or piece of property, email me. At no cost to you, we’ll put together a CMA that will tell you what your home can sell for today.
I look forward to our discovery!
Happy Friday! Enjoy this wonderful weekend. The weather is going to be amazing, the Big Sur Marathon is in town, the Pebble Beach Food & Wine Event is rockin the Peninsula…there’s endless fun to be had. I hope to see you around.
Below I have provided statistics about real estate that has sold on the Monterey Peninsula in the first quarter of 2011. In gathering these figures, I included the cities of Carmel, Monterey, Pacific Grove, Pebble Beach, and Seaside.
As you can see, Traditional Listings still outnumber Distressed Listings (Foreclosures and Short Sales) by 5 to 1. Traditional sales versus distressed sales came out 3 to 1, respectively. Total home sales are up 3% from Q4 of 2010 and are up 26% from Q1 of 2010. The highest number of homes have sold in the $300,000 to $500,000 price range, but the shortest average Days on Market is in the $700k to $1M price point. Interest rates have risen and fallen over the last few months, but remain steady around 5% for a conventional 30-year fixed.
Thank you for taking the time to read my report. Please don’t hesitate to reply with questions about the information that I’ve presented or requests for more detailed information on your city of choice.
Q1 Market Report
Monterey Peninsula
New Foreclosures
52
New Short Sales
56
New Traditional Listings
248
Total New Listings
356
Foreclosures Sold
43
Short Sales Sold
34
Traditional Sales
117
Total Sold
194
# of Cash Purchases
52
Total Homes Sold Q1 2011
194
Total Homes Sold Q4 2010
188
Total Homes Sold Q1 2010
143
Homes Sold
Avg DOM
below $300k
40
101
$300k – $499k
46
103
$500k – $699k
37
141
$700k – $999k
25
98
$1M – $2M
29
138
$2M – $4M
12
186
$4M +
5
180
My Goal…
My goal is to be your real estate expert. I am here to help you and your friends with all of your real estate needs; including but not limited to the sale, purchase, and financing of a home. I study market conditions closely and together we can construct a marketing and price plan that will get your home sold in a reasonable time frame. Whether it be for investment or residence, I can help you analyze location, pricing, and product in order to find the best property available.
Have a wonderful Spring and I look forward to our next conversation.
As the graph above shows, the number of units sold in November was a drastic increase from the 2009 low in June. The median and average price of the transactions held steady throughout the year, which tells me that while other areas may be seeing a large decrease in home sales price, Pacific Grove values are holding strong.
El Dorado Realty Company 