As the third quarter of 2024 closes, the real estate market across the Monterey Peninsula is showing both growth and challenges, with Carmel continuing to stand out as the region's hottest market. Here's a breakdown of the key trends and insights from September's Market Action Reports:
Carmel: The Hot Spot on the Monterey Peninsula
Carmel's real estate market remains robust, with impressive year-to-date (YTD) growth. The average sale price (SP) is up 17%, and the median sale price has risen 15%. The market has maintained a steady pace of transactions, with the number of sales nearly matching those of the same period last year. Notably, September saw 31 sales, the second-highest number of transactions for the year, further solidifying Carmel's position as the most sought-after market in the area.
Pacific Grove: Steady Growth
Pacific Grove is experiencing steady growth in sales, with the number of units sold increasing by 6% YTD. Buyers and sellers alike are benefiting from a healthy list price to sale price (LP/SP) ratio of nearly 96%, reflecting the area's competitive pricing and strong buyer demand.
Monterey: Leading the Way in Sales Growth
Monterey has shown the most significant uptick in sales volume across the Peninsula. Sales units have surged by 16% YTD, and the LP/SP ratio sits at a solid 97%, indicating that homes in Monterey are being sold close to their asking prices. The combination of increasing sales and tight price negotiations reflects a stable and appealing market for both buyers and sellers.
Highway 1 South Coast: A Slowing Market
The South Coast along Highway 1 has faced noticeable challenges. Sales have dropped by 25% YTD, and the months' supply of inventory has ballooned to nearly 21 months. This figure indicates that, at the current pace of sales and with no new listings, it would take almost two years to clear the existing inventory. Sellers in this area may need to adjust their pricing or expectations to accommodate this slower market.
Pebble Beach: A Rising Inventory with Fewer Sales
Pebble Beach has also experienced a slowdown in 2024, with sales down 18.5% YTD. The months' supply of inventory has grown significantly by 50%, reaching 7.6 months. While Pebble Beach continues to be a prestigious area for luxury buyers, the rising inventory suggests that the market is becoming more favorable for buyers seeking negotiation opportunities.
Carmel Valley: A Sharp Decline
Carmel Valley is facing one of the more substantial downturns in the region. Sales are down 25% YTD, and the months' supply of inventory has grown to 18 months, indicating a significant slowdown in buyer activity. With an 18-month inventory, sellers in Carmel Valley may experience longer listing times and may need to adjust pricing to attract buyers in a slower market.
Key Takeaways for Buyers and Sellers:
- Carmel remains the hottest market on the Monterey Peninsula, with strong price growth and steady sales. Buyers looking to invest in Carmel should act quickly as demand remains high, while sellers can enjoy favorable market conditions.
- Monterey and Pacific Grove are seeing strong sales and competitive pricing. Both markets are performing well, with homes selling close to list prices.
- Pebble Beach and Carmel Valley are experiencing rising inventory levels, which could present opportunities for buyers looking for negotiating power. However, sellers in these areas may need to adjust their strategies to account for the longer sales cycles.
- The Highway 1 South Coast has seen a sharp slowdown, with inventory levels much higher than the area's current demand. Sellers may face challenges in this market and may need to be patient or consider price reductions.
As we move into the final quarter of 2024, the Monterey Peninsula real estate market remains dynamic, with opportunities and challenges for both buyers and sellers. Whether you're looking to invest in Carmel real estate, Monterey real estate, or other parts of the Peninsula, staying informed on these market trends is key to making the best decisions.
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Looking to buy or sell on the Monterey Peninsula? Get in touch to discuss how these trends can impact your next move in Carmel, Pebble Beach, or the surrounding areas.
