Monterey County Real Estate Market Update

Mike Meza December 10, 2024

Monterey County Real Estate Market Update: What You Need to Know

As we close out the year, it's clear the Monterey County real estate market is evolving. Here's a breakdown of the latest trends by price range, giving you actionable insights into what buyers and sellers can expect as we head into 2025.

Homes Under $500,000: Inventory Crunch

The entry-level market is facing significant challenges:

Closed Units: 204, down 21% from October 2023.
Key Insight: Homes under $500,000 are nearly nonexistent, reflecting Monterey’s high average sale prices.

Takeaway: Affordable housing remains scarce, making this segment competitive for buyers.

The $1M-$3M Market: A Balancing Act

This mid-luxury segment is holding steady:

Closed Units: 603, flat compared to last year.
Months of Supply: 4.6 months, up 26%, signaling more inventory.
Days on Market: 49 days, a slight 4% increase.
Active Inventory: 300 units, up 40%—near the highest levels in recent years.

Takeaway: Buyers in this range have more choices, but sellers must adjust to longer selling timelines as the market balances out.

Luxury Homes: $3M-$5M

This segment is seeing interesting shifts:

Closed Units: 99, up 18% from 2023.
Months of Supply: 7 months, up 8%.
Days on Market: 59 days, down 3%.
Price per Square Foot: $1,491, down 6%.

Takeaway: Despite slight price declines, activity is strong. Buyers should prepare for longer negotiations, while sellers may need to adjust pricing expectations.

Ultra-Luxury Market: $5M-$10M

The high-end market is experiencing notable growth:

Closed Units: 46, up 39%.
Months of Supply: 8.3 months, down 23%.
Price per Square Foot: $1,897, down slightly.

Takeaway: This segment is performing well, with quicker turnover and robust demand, even as pricing remains stable.

Over $10M: Ultra-Luxury Spotlight

The elite tier is small but active:

Closed Units: 7, down slightly from last year.
Active Inventory: At its highest level in years.
Price per Square Foot: $3,907, up 13%.

Takeaway: The ultra-luxury market remains niche, but sellers are commanding record-high prices.

What This Means for Buyers and Sellers in 2025

Buyers: The growing inventory signals an opportunity to find the perfect property. With interest rates expected to fluctuate, staying informed and flexible will be key.
Sellers: The market is shifting toward balance. Pricing competitively and preparing for slightly longer days on market will be essential.

Key Insight: Homeowners are coming to terms with the “new normal” of higher interest rates and are entering the market, which is fueling inventory growth. This sets the stage for a more evenly balanced market in 2025.

Final Thoughts

If you're considering buying, selling, or investing in Monterey County, now is the time to strategize. Let’s work together to navigate the evolving market and make the best decisions for your goals.

Ready to move? Contact me today, and let’s plan your next steps in Monterey County real estate.