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Merritt’s Market Update Monterey Peninsula February, 2013

Š2012 Merritt Ringer


Read, Seen, or Heard

Here’s an chart that speaks volumes about recent American history:

Source: Institute for Research on Labor & Employment, UC Berkeley


Table of Contents

The Big Picture…………………….…….………... 3 Inventories…………………...…….…….………... 4 Prices…………………………………….………… 5 Financing………………………………….……….. 6 Carmel………………………………...….….…… 7-8 Carmel Valley…………………………..….……… 9-10 Pebble Beach………………………...……….…… 10-11 Pacific Grove…………………………….…….…..12-13 Monterey…………………………………....….…..14-15 Monterey-Salinas Corridor………………...……. 16-17 Seaside & Marina ………………………...……… 18-19 An Agents Life …………………...….…...…….…..20 End Note …………………………………………....21

Caveat: I’m no economist (despite the performance of most, this is not a boast). I also lack the gift of prophecy; from the evidence, I’m not alone. But our real estate market is buffeted and buoyed by all manner of larger forces, so I do watch the horizons. I also dig into our local market. The information here is as reliable as I can make it, but nothing like comprehensive.


THE BIG PICTURE U.S. existing home inventory for sale:

U.S. existing home sale prices:


INVENTORY We hear a lot about how inventory has declined. The chart below shows how relative this is. Inventories have fallen a lot from the peaks of the financial crisis. But they’re higher than in the hot market early last decade. Monterey Peninsula: 2003-201

In each of the sections ahead, you can take a similar long view of the local markets that interest you.


PRICES Below is a chart of the average closed sales prices, per square foot, of Monterey Peninsula homes from 2003 through 2012. These numbers, though a bit crude, are a fair proxy for our market as a whole. They show that prices generally have fallen about 35-40% from the peak.

In the sections that follow, you can look at the impact the crisis had on prices in the markets that interest you. Note that prices have stabilized, or are climbing a bit, in most markets.


FINANCING

Rates Rates fluctuate by the second and different lenders offer various packages, so the numbers below are just a snapshot. The rates below are for loans without points. Up to $417,000 30 year fixed: 3.5% 5/1 ARM: 2.675% Jumbo (over $483,000 here) 30 year fixed: 4% 5/1 ARM: 2.75% The addition of a point reduces the rate .125-.250%.


CARMEL: 10 YEARS OF INVENTORY & PRICES

Carmel prices are down generally 30-35%.


CARMEL CLOSED HIGH & LOW

This chic contemporary home in Carmel Meadows took top spot. With vast views of Pt. Lobos & Monastery Beach, this 3,500 sf home had great sleek charm. In 2010, it sold for $4.550M. It just sold again for $4.5M.

This is what the bottom of our market looks like today: a 1,156 sf 2Bd/2Ba home at the intersection of Forest & Mountain View. It sold without hitting the open market for $700K.


CARMEL VALLEY: 10 YEARS OF INVENTORY & PRICES


CARMEL VALLEY CLOSED HIGH & LOW

On Carmel Valley Rd., a bit west of Boronda. Said the listing agent: “2 bed 3 bath contemporary main house retains original charm but is fully functional & features a 1 bed 1 bath attached guest unit or office space PLUS a 1 bed 1 bath detached guest house built in 2001.� It had 3.276 acres, a pool, and almost 4 acres. It sold for $1.345M.

A bank-owned home, also on Carmel Valley Road (near Schulte) offered 3Bd/2.5Ba and just over 1600 sf on an acre. It sold a little over the asking price for $421K.


PEBBLE BEACH: 10 YEARS OF INVENTORY & PRICES


PEBBLE BEACH CLOSED HIGH & LOW

On Porque Lane, between the Lodge & Cypress Point, this single-level home had been extensively rebuilt about a decade ago. It offered 3Bd/2.5Ba, in 3,905 sf, on over 1 1/2 acres. It sold in 9 days for $2.950M.

On Lookout Rd, near Forest Lake, this single-level ranch, with 2500 sf, & 4 Bd/2.5 Ba, faced greenbelt. It was a bit dated. They started by asking $980K; after 539 days of trying, they closed for $800K.


PACIFIC GROVE: 10 YEARS OF INVENTORY & PRICES


PACIFIC GROVE CLOSED HIGH & LOW

On 11th, near the shore, this 15 year-old 3Bd/2.5Ba home had almost 2100 sf. In 2006, it sold for $1.145M; in 2010, it sold for $875K; it just closed for $775K, a fall from its peak of about a third.

Del Monte Park captured the bottom with this home on Presidio. It had a mere one bedroom and one bath in 632 sf, The agent valiantly claimed charm but little was evident. It was bank-owned and sold for $265K.


MONTEREY: 10 YEARS OF INVENTORY & PRICES


MONTEREY CLOSED HIGH & LOW

An updated home on Doud got the top price last month. It boasted 5Bd/3Ba in over 3,000 sf with lots of tall ceilings. It sold near the asking price in just over a month for $775K.

A 1Br/1Ba condo took the bottom spot with a full-priced sale of $92.5K.


MONTEREY-SALINAS CORRIDOR:

10 YEARS OF INVENTORY & PRICES

(east to San Benancio)


MONTEREY-SALINAS CLOSED HIGH & LOW

In Villa Oaks, a small gated community off San Benancio, this 5 year old home had 4600 sf, 5Bd/4.5Ba. It sold in 2009 for $1.3M. It just closed again for $1.325M.

Also off San Benancio, on Harper Canyon Rd., this home offered 3Bd/2Ba in 1,779 sf. It sold fast for $448.5K.


SEASIDE & MARINA: Average Price/ Sq. Ft.

Marina prices/sq. ft.

Seaside prices/sq. ft.


MARINA & SEASIDE CLOSED HIGH

Marina’s highest closing was a short-sale on Quebrada Del Mar Road. It was 24 years old, almost 2100 sf, & it had 4Bd/2.5Ba. In 2001, it closed for $465K. It just sold again for $385K.

Seaside Highlands, our perennial holder of the top spot, snagged it again with this sale. A 5,700 sf home with 4Bd/2.5Ba, it sold for $651K.


An Agent’s Life

Carmel Valley on a rainy winter’s day.


Thank your for taking a few minutes with my e-magazine. Your comments & questions are welcome. Let me know about issues you’d like to see addressed here or stories and facts you’d like others to know. Know anyone thinking of buying or selling, someone who would benefit from informed & straight counsel? Please keep me in mind. Referrals like yours are the heart of my practice.

© Merritt Ringer 2012


Merritt’s Market Update

Š2013 Merritt Ringer


Merritt's Peninsula Market Update: February, 2013  

Monterey Peninsula Real Estate Market update

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