3Q2023 Market Update

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3Q2023 Market Update

Presented by Canning Properties Group Mike Canning | Jessica Canning | Nic Canning | Ellen Armstrong Brian Keck | Paige Colijn | Caroline Garcia | Anita Jones | Spiro Pettas

Overview The market started to break loose this quarter with deal flow notching upward 11% to 156 deals raising $440M. The middle and top of the market led the charge on the rebound this quarter, driving total investments up 41% from the $314M that closed last quarter. Interest was particularly strong for move-in ready properties in downtown Carmel which accounted for almost half of all sales, at $200M into just 50 deals. Pebble Beach is still below the historic average but did increase to 22 deals for $90M (up 15% for deals and 32% for dollars invested over last quarter). The Preserve broke a new record with 4 Vuelo De Las Palomas closing at $12.5M this quarter and building upon a trend of $10M+ sales in that region. The Carmel Highlands also rebounded nicely this quarter with 8 deals closing for $30M, compared to the 2 deals that closed for $6M last quarter.

It’s looking increasingly likely that the window for buyers who are trying to time the market is closing as deals are becoming increasingly competitive across the price spectrum. The median sales price shot up 25% this quarter to $2.10M, but this is primarily due to a higher percentage of deals closing north of $4M. The higher prices are squeezing buyers in Pacific Grove and Monterey, which both had slower quarters this time. Pacific Grove had just 30 deals close for $53M, which is essentially even with the past three quarters. However, big view properties are going for a premium and can move quickly, as we saw with 398 Calle De Los Amigos, which was listed for $5.9M and went into escrow immediately and will only be the 5th time a house has sold over $5M in PG. Although we’re steadily climbing our way out of the bottom of the market that we hit in 4Q22, sellers have to adjust to two new realities: houses are staying on the market longer (average days on market jumped to 50, from just 33 last year) and need to negotiate with buyers by coming off their list price (average discount off list is up to 2% currently and up to 8% off list in the Highlands). This is another example of returning to historic trends as on average in this area we would see properties sit on the market for about 75 days and go for about 4-7% off list price. The good news is that for those who are a bit patient and willing to work with buyers, you’re still getting strong prices that are well above where they were in 2019.

-Jessica Canning Cover Home: 3 Holding Field, Carmel 3HoldingField.com

Market Insight

ALL REGIONS

3Q2023 Sales by Price Range

156

Total Sales

Median Sales Price ($M) 3Q2023

Area

YoY % Change

$2.93

Carmel

13%

$4.20

Carmel Highlands

12%

$2.63

Pebble Beach

2%

$2.64

Quail

-12%

$12.50

Preserve

112%

$1.60

Pacific Grove

16%

$2.10

Carmel Valley Ranch

2%

$1.26

Monterey

11%

N/A

Tehama/Monterra

N/A

$2.10

Overall

25%

$8M+

7

$6.0M-$8.0M

2

$4.0M-$6.0M

15

$3.0M-$4.0M

11

$2.5M-$3.0M

19

$2.0M-$2.5M

23

$1.5M-$2.0M

27

$1.0M-$1.5M

32

<$1.0M

20

Total Annual Sales

Average Sales Price ($M) 3Q2023

Area

YoY % Change

$3.97

Carmel

25%

$3.85

Carmel Highlands

-64%

$4.34

Pebble Beach

9%

$2.64

Quail

-12%

$12.50

Preserve

112%

$1.78

Pacific Grove

15%

$2.10

Carmel Valley Ranch

9%

$1.25

Monterey

6%

N/A $2.95

Tehama/Monterra Overall

N/A 9%

Information believed to be reliable as obtained from the Monterey County Association of Realtors database and known off-market transactions.

3Q2023 Update

ALL REGIONS

# of Sales

Quarterly Sales by Region

Monterey

Carmel

Carmel Highlands

Preserve

Carmel Valley Ranch

Pacific Grove

Pebble Beach

Quail

Monterra & Tehama

Sales Price Range

3Q2022

3Q2023

2Q-3Q 22

2Q-3Q 23

10 Year Avg.. 3Q Sales

10 Year 2Q-3Q Avg.

<$1.0M

27

20

59

52

88

160

$1.0M-$1.5M

41

32

89

61

47

88

$1.5M-$2.0M

33

27

59

53

29

49

$2.0M-$2.5M

14

23

39

35

16

26

$2.5M-$3.0M

7

19

17

31

11

20

$3.0M-$4.0M

17

11

42

26

13

25

$4.0M-$6.0M

8

15

18

23

10

16

$6.0M-$8.0M

7

2

12

8

4

7

$8M+

8

7

18

9

4

8

Total Sales

162

156

353

298

221

399

Pebble Beach Market Overview

The Pebble Beach marketplace accelerated slightly in the 3rd quarter with 22 sales invested in $90.9M – up from the previous quarter which posted 20 sales invested in $71M. Throughout the 3rd quarter, inventory levels steadily hovered near record lows (average of 28 active) which limited purchase opportunities and tapered overall deal flow. This was particularly noticed in the upper price points as active inventory logged more days on market as Buyers in those price points waited on the sidelines for new options to become available. By the numbers, Central Pebble Beach’s average days on market ticked up to 146 (+2.1% QoQ), while the lower price points in MPCC and Upper Forest shrunk to 29.3 (-97% QoQ) and 26.3 (-226% QoQ) respectively.

Even with mortgage rates peaking above 7% in Q3, we saw a rise in loan-based deals from the previous quarter as buyers in the lower price points(<$2.5M) remained active throughout the summer. In the second quarter, all-cash purchases represented 78% of all deals while the 3rd quarter reduced to just 62%.

The MPCC East area was the hottest location in activity for Pebble’s market – representing 43% of all deals this quarter. The confluence of strong demand to join the club paired with those seeking shelter in the entry level market ($1.5M-$2.5M) of this coveted community boosted this area’s activity in Q3.

Have we entered a Buyer’s market yet? The numbers show that the market is largely still favoring sellers – particularly in the MPCC and Upper Forest areas which have quarterly absorption rates of 180% and 150% respectively.

Conversely, the Central Pebble Beach area had a 20% absorption rate this quarter. By definition, a market with an absorption rate at or below 15% typically signals a Buyer’s market.

Getting to know your neighbors: Interestingly, the Bay Area tied with local Buyers - representing 37.5% of purchases this quarter, while the San Juaquin Valley represented 12.5% and Texas and Arizona rounded out the remainder at 6% a piece.

As we enter the 4th quarter, which historically is a cooler quarter for deal flow, I am encouraged to see 7 escrows in the deal pipeline – totaling $17.73M in list prices. I anticipate the 4th quarter to post similar numbers to the 3rd quarter as value buyers pursue deals and those that need to buy remain active in the marketplace.

Nic Canning pebble specialist 831.241.4458

Featured Property Photo: 3348 Ondulado Road, Pebble Beach 3348Ondulado.com

3Q2023 Update

PEBBLE BEACH

3Q2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

22

Total Sales

$90.9M Total Dollar Volume

Get Smart

3Q2023 Snapshot

22 Units Sold in 3Q2023

62 Average Days on Market

3 0 1 0 7 3 4 1 3

28% increase from 2Q23

16% decrease from 3Q22

10% increase from 2Q23

21% decrease from 3Q22

13% increase from 2Q23

68% increase from 3Q22

3Q2023 Top Pebble Beach Sales 1480 Oleada Road 3908 Ronda Road 3164 Palmero Way 3199 Cortez Road 3113 Hermitage Road 2893 17 Mile Drive 1062 Marcheta Lane 1126 Mestres Drive 1039 Parkway Drive 2840 Paradise Park Road

$24,000,000 $13,200,000 $11,000,000 $5,300,000 $2,900,000 $2,900,000 $2,705,000 $2,700,000 $2,690,000 $2,625,000

3047 Whalers Way 1012 San Carlos Road 3171 Forest Lake Road 1072 Sawmill Gulch Road 1455 Lisbon Court 4059 El Bosque Drive 3114 Hermitage Road 3054 Strawberry Hill Road 4052 Costado Road 4158 El Bosque

*Indicates a Canning Properties Group Sale

$2,590,000 $2,300,000 $2,300,000 $2,195,000 $1,945,000 $1,895,000 $1,850,000 $1,800,000 $1,457,500 $900,000

3Q2023 Update

PEBBLE BEACH

# of Sales

Quarterly Sales by Region

Central Pebble Beach

4%

Average % off list price 3Q2023 Sales

MPCC

Upper Forest

l, l a f s i h t ed l o o c d n a g n i t n u o As dem c s di d n a s n o i negotiat ing to return to n are begin cal norms. histori

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

3Q2023

$2.63

2%

3Q2023

$4.34

9%

2Q2023

$2.74

-13%

2Q2023

$3.75

-27%

1Q2023

$2.67

-21%

1Q2023

$3.53

-55%

4Q2022

$2.80

5%

4Q2022

$4.97

24%

3Q2022

$2.57

-12%

3Q2022

$4.00

-13%

Average

YoY % Change

Carmel

Market Overview Carmel had a very strong quarter with investments surging 78% over this time last year for $197M, compared to $111M in 3Q22. This is dramatically higher than the historic average of $90-100M that downtown Carmel typically sees and almost matches the peak we saw in 2021 which had $200M+ per quarter. Part of the thrust behind the surge in investments this quarter are the top 2 sales: Butterfly closed for $29M and we sold SeaGlass for $15.5M. Given the construction costs associated with renovating right now, the market is paying a strong premium for move-in ready homes, with many deals even going partially furnished.

The Golden Rectangle had a particularly strong quarter with new inventory finally coming to the market throughout the summer. The Rectangle had 12 deals close this quarter - the highest deal flow since 4Q21. Carmel Point stayed steady with 3 deals for a total of $38M with a median sales price just north of $4.2M. Northeast Carmel continues to move with 14 deals closing for a combined $33M as buyers continue to snap up deals that are close to town. Southeast Carmel had 10 sales this quarter for a total of $31M, which is more than double what we saw last quarter and the highest we’ve seen in this region in several years. Northwest Carmel continues to be a good buy with the median sales price of $2.7M, benefitting from nice proximity to the beach and downtown Carmel. Hatton Fields had just 3 sales this quarter which is up from last quarter (0) but held back by a total lack of inventory as demand remains strong for this location.

Momentum continues to build as you go up the price point in Carmel, with 14 sales north of $4M this quarter (compared to just 7 at this time last year); we’ve seen 21 sales in this bracket over the past two quarters, which is up considerably from the 14 we saw in the summer quarters of last year. Of particular note is the $4-6M bracket, which had 10 of the 14 sales this quarter and represents the single largest bump over last year for any price range. Although sellers are no longer getting reach prices, with some negotiating and pricing at market, they’re still getting prices well above what we saw a few years ago and we don’t anticipate that changing in the near future.

Jessica Canning carmel specialist 831.238.5535

Featured Property Photo: 2480 Bay View Avenue, Carmel Point 2480BayView.com

3Q2023 Update

CARMEL

3Q2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

50

Total Sales

$197M Total Dollar Volume

Get Smart

3Q2023 Snapshot

50 Units Sold in 3Q2023

57 Average Days on Market

3 1 10 10 4 13 6 2 1

81% increase from 2Q23

78% increase from 3Q22

61% increase from 2Q23

43% increase from 3Q22

59% increase from 2Q23

75% increase from 3Q22

3Q2023 Top Carmel Sales 26320 Scenic Road SE Corner of Scenic & 9th Scenic & 8th NW Corner San Antonio 2 SW of 10th Torres 2SE of 10th Street NWC San Carlos & Santa Lucia 26138 Camino Real Camino Real 2NW of 8th 25962 Ridgewood Road San Antonio 3 NW of 11th

$29,000,000 $15,500,000 $8,695,000 $7,000,000 $5,540,000 $5,495,000 $5,450,000 $5,250,000 $5,250,000 $5,000,000

SE Corner Camino Real & 9th $4,500,000 N Carmelo 5SE of 2nd $4,450,000 24876 Pescadero Road $4,300,000 SEC of Ocean & San Antonio $4,200,000 26246 Carmelo Street $3,900,000 9th 2 NW Carmelo Street $3,550,000 Guadalupe 3 NW of 6th $3,549,000 San Carlos 3SW of 11th Street $3,400,000 Torres NE Corner 9th Avenue $3,395,000 NE Guadalupe & 6th Avenue $3,350,000

*Indicates a Canning Properties Group Sale

3Q2023 Update

CARMEL

# of Sales

Quarterly Sales by Region

Carmel Point

Golden Rectangle

Hatton Fields

Northeast Carmel

Northwest Carmel

Southeast Carmel

0%

Average % off list price 3Q2023 Sales

rs e y u b r e umm s n i e ve i g t i r t e Su p m o re c o m n i d e ng i t a i t o result g e sn s e l d n a s . s deal r e y u b r room fo

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

3Q2023

$2.93

13%

3Q2023

$3.97

25%

2Q2023

$3.13

8%

2Q2023

$3.52

12%

1Q2023

$3.02

9%

1Q2023

$3.92

13%

4Q2022

$2.90

-7%

4Q2022

$3.83

6%

3Q2022

$2.60

5%

3Q2022

$3.17

5%

Average

YoY % Change

Carmel Highlands Market Overview

The third quarter of 2023—with 8 closed sales (6 homes and 2 lots)— has been something of a rebound quarter for the Carmel Highlands and Carmel Meadows markets, following the slowest second quarter in over a decade wherein only 2 properties in these areas sold. Indeed, a careful examination of the numbers over the last 12, 6, and 3 months tells the story of a recovering and strengthening market in general: • There have been 15 sales in the last 12 months in these two markets • 10 of those 15 sales where in the last 6 months • 8 of those 10 closed in the 3rd quarter Overall, this is good news and clear evidence that the Highlands and Meadows markets are warming up as we move through the second half of 2023.

Currently there are 11 homes for sale in the Meadows and Highlands, with an average asking price of just a little over $8.3M, but with an increasing average DOM (Days on Market) now at almost 180 days. Compared to the fact that the median sales price of the 6 homes that sold last quarter was $4.375M, we can see that—relative to these markets—the homes at the lower range of the market are the ones that are moving. In fact, the highest priced home to close last quarter in the Highlands was 165 #A Spindrift Road—a new, contemporary build that had been under construction for many years—which sold for $6.3M (again, about $2M less than the average asking price of the current listings) and in just 38 days on the market.

And speaking of days on market, a final impressive statistic of 3Q23 is, the average DOM of the last 4 homes to sell in the Highlands and Meadows was a mere 22 days, which demonstrates that there is still a healthy demand for well positioned, accurately priced properties in these markets.

Two of the best deals currently available in these two areas are our 32684 Coast Ridge Drive and 2845 Ribera Road listings at $3.995M and $3.199M respectively. Both are well-priced, quality homes with beautiful views. For more information on these and other Canning Properties Group offerings, we invite you to visit our listings page at canningproperties.com.

Nic Canning CARMEL HIGHLANDS specialist

831.241.4458

Featured Property Photo: 32684 Coast Ridge Drive, Carmel Highlands 32684CoastRidge.com

3Q2023 Update

CARMEL HIGHLANDS

3Q2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

8

Total Sales

$30.5M Total Dollar Volume

Get Smart

3Q2023 Snapshot

8 Units Sold in 3Q2023

64 Average Days on Market

0 1 3 0 3 0 1 0 0

417% increase from 2Q23

59% decrease from 3Q22

300% increase from 2Q23

14% increase from 3Q22

203% increase from 2Q23

3% decrease from 3Q22

3Q2023 Top Carmel Highlands Sales 165 Spindrift Road #A 29705 Peter Pan Road 201 Spindrift Road 2765 Ribera Road

$6,300,000 $5,080,000 $4,550,000 $4,200,000

95 Yankee Point Drive 2700 Red Wolf (Lot) 14 Mentone Road 161 Spindrift Road #B (Lot)

$3,000,000 $2,998,000 $2,650,000 $1,700,000

3Q2023 Update

CARMEL HIGHLANDS

# of Sales

Quarterly Sales by Region

Carmel Highlands

4% Average % off list price 3Q2023 Sales

Carmel Meadows

adows e M e h t t tha Evidence s are t e k r a m ands st 4 and Highl a l e h t t is tha p u g n i m age r war e v a n a ell had s o t s e hom days!

2 2 e r e m DOM of a

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$4.20

12%

3Q2023

$3.85

-64%

2Q2023

$2.95

-43%

2Q2023

$2.95

-46%

1Q2023

$3.06

-23%

1Q2023

$3.23

-50%

4Q2022

$5.10

62%

4Q2022

$5.10

27%

3Q2022

$3.75

46%

3Q2022

$10.64

263%

Quail Lodge/Meadows Market Overview

The market in Quail slowed a bit this quarter with 2 home sales and one lot sale in Quail Meadows and days on market stretching up to 64 (from 48 at this point last year). However, this is primarily a sign of returning to the pace of sales that we saw prior to COVID, as we're seeing strong interest in the Quail region.

The two home sales were 7075 Valley Greens which sold for $2.85M (off 8% from the list price) and 7038 Valley Greens which closed for $2.439M and slightly above list price. The home at 7038 Valley Greens was a major fixer and represents the lowest priced sale in Quail in over 2 years. The bar for move-in properties is now well above $3M. Quail Meadows has gone a full year without a home selling. Demand continues to be strong for this hidden gem in the valley with many people reaching out to us asking for anything off market. One of the last remaining lots sold this quarter for $1.35M, which was one of the few equestrian lots in Quail Meadows and had been available on and off the market for several years.

The pipeline in Quail Lodge looks strong with three properties currently in escrow: 8022 River Place ($2.8M), 7028 Valley Greens ($3.4M) and 7028 Valley Knoll ($4.195M). There are also two listings that are actively listed on River Place: 8008 River ($2.699M and 61 days on the market) and 8023 River ($3.499M and 73 DOM).

Jessica Canning quail specialist 831.238.5535

Featured Property Photo: 7028 Valley Greens Circle, Quail Lodge SALE PENDNIG

3Q2023 Update

QUAIL LODGE / MEADOWS

3Q2023 Sales by Price Range 0 0 0 0 1 1 0 1 0

$8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

3

Total Sales

$6.6M Total Dollar Volume

Get Smart

3Q2023 Snapshot

3 Units Sold in 3Q2023

64 Average Days on Market

18% decrease from 2Q23

121% increase from 3Q22

Even with 2Q23

200% increase from 3Q22

2643% increase from 2Q23

29% decrease from 3Q22

3Q2023 Quail Lodge & Meadows Sales 7075 Valley Greens Circle 7038 Valley Greens Circle 5486 Quail Meadows Drive

$2,850,000 $2,439,000 $1,350,000

3Q2023 Update

QUAIL LODGE / MEADOWS

# of Sales

Quarterly Sales by Region

Quail Lodge

7%

Average % off list price 3Q2023 Sales

Quail Meadows

to g n i t r a t es r a s r e y s in e Bu c i r p n ko c a b h . s y u e l p l a V e d th n a l i a u Q

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$2.64

-12%

3Q2023

$2.64

-12%

2Q2023

$3.28

-10%

2Q2023

$2.69

-41%

1Q2023

$2.21

-43%

1Q2023

$2.21

-36%

4Q2022

$3.39

-26%

4Q2022

$3.39

-25%

3Q2022

$3.00

90%

3Q2022

$3.00

22%

Pacific Grove Market Overview

The housing market in general, much like the seasons, undergoes a cyclical pattern with each quarter bringing its own unique set of dynamics. The third quarter typically stands as a bridge between springtime enthusiasm and wintertime reflections. With its small-town charm, access to beaches and reputable public school system – it’s no wonder the Pacific Grove housing market has remained steadfast during the third quarter of 2023. Not surprisingly, the median sale price experienced a significant YoY increase of 16% during the third quarter, reaching $1.6M, marking the most substantial surge observed in recent years.

During the third quarter of 2023 we saw 30 houses sell in Pacific Grove, an almost identical number to the previous quarter. Additionally, of these 30 sales, only 2 transactions closed for under $1M. Comparatively speaking, during this same quarter last year, we saw 49 sales in Pacific Grove with 9 homes selling for under $1M. Move-in ready homes that needed mild updating were the hottest commodity for Pacific Grove buyers during the third quarter of 2023, many of whom are looking for the comforts of home immediately upon moving in. These properties provide the advantage of immediate occupancy while sparing buyers the hassle and time associated with major renovations.

However, the potential for mild updates allows homeowners to put their personal touch on the space, tailoring it to their specific tastes and needs.

This balance between move-in readiness and customization makes such homes particularly attractive, as Buyers can envision themselves living comfortably while also having the creative freedom to enhance and modernize the space – gradually turning it into their dream home over time.

Perhaps the most interesting statistic to note from the third quarter is the average Days on Market in Pacific Grove, which fell to 22 days for the first time in over a year. This has transpired on just two prior occasions within the last five years, representing a significant 208% reduction in DOM compared to the same quarter last year. Despite interest rates and other speculative influences, this is a strong sign that Pacific Grove buyers are eager and motivated to start their next chapters. If Buyers and Sellers can embrace the fact that the market is ever-changing, flexibility can be your greatest asset.

Spiro Pettas monterey & pg specialist 831. 214.3377

Featured Property Photo: 2853 Ransford Avenue Pacific Grove SALE PENDING

3Q2023 Update

PACIFIC GROVE

3Q2023 Sales by Price Range 0 0 1 1 3 4 9 10 2

$8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

30

Total Sales

$53.38M

2% increase from 2Q23

28% decrease from 3Q22

14% decrease from 2Q23

39% decrease from 3Q22

32% decrease from 2Q23

54% decrease from 3Q22

Total Dollar Volume

Get Smart

3Q2023 Snapshot

30 Units Sold in 3Q2023

22 Average Days on Market

3Q2023 Top Pacific Grove Sales 1209 Surf Avenue 520 Lighthouse Avenue 305 520 Lighthouse Avenue 304 542 Lighthouse Avenue 210 1387 Jewell Avenue 1038 Jewell Avenue 859 Balboa Avenue 919 Cedar Street 156 Monterey Avenue 815 Grove Acre Avenue

$4,000,000 $3,590,000 $2,680,000 $2,530,000 $2,500,000 $2,300,000 $2,250,000 $2,197,000 $2,090,000 $1,999,000

515 Hillcrest Avenue 304 Locust Street 411 Central Avenue 56 Spray Street 218 4th Street 134 11th Street 846 Walnut Street 430 Melrose Street 709 Lobos Avenue 38 Country Club Gate

$1,957,342 $1,745,000 $1,700,000 $1,650,000 $1,600,000 $1,599,000 $1,575,000 $1,500,000 $1,425,000 $1,300,000

3Q2023 Update

PACIFIC GROVE

# of Sales

Quarterly Sales by Region

Beach/Asilomar

Washington Park/Pine Candy Cane Lane

Downtown PG

0%

Average % off list price 3Q2023 Sales

Country Club/Forest Hill/Del Monte Park Central Ave/Downtown

nued i t n o c a cates i d ing n i t p s o i h d a T s seller s d r a w o when h c a shift t o r p tic ap a m es, g m a o r h p r i a e h lling t e s d n a otions m e pricing g n i t an let h t r e h t ra ess. c o r p e h guide t

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$1.60

16%

3Q2023

$1.78

15%

2Q2023

$1.47

7%

2Q2023

$1.52

1%

1Q2023

$1.47

-8%

1Q2023

$1.68

-1%

4Q2022

$1.15

-8%

4Q2022

$1.41

-11%

3Q2022

$1.38

6%

3Q2022

$1.55

3%

Monterey Market Overview

How’s the market? How’s inventory? As we segue into the fourth quarter of 2023, these questions have been the opening line of almost every conversation over the last few months and throughout most of this year.

And, despite persistently low inventory levels, the Monterey market continues to exhibit remarkable strength. The scarcity of available homes for sale has, in fact, fueled a highly competitive environment driving home sales to impressive levels. Which is why, during the third quarter of 2023, the median sale price rose to $1.26M – the highest we’ve seen in over a year in Monterey.

When inventory levels are low, as we've experienced on the Monterey Peninsula throughout most of 2023, it can create a competitive and sometimes frenzied environment for buyers. Multiple offers on desirable properties become the norm, driving up prices and potentially leading to bidding wars on well priced homes. However, if sellers overshoot the market, the house will sit for longer and end up well below list price. While this is a far cry from the pandemic days when homes were receiving a plethora of offers over list price, it’s a clear sign that Sellers are pricing their homes more realistically with ample Buyers ready to execute on a purchase.

During the third quarter of 2023 an interesting trend has emerged in Monterey – roughly 80% of the homes that sold within 2 weeks of being listed achieved sale prices above their initial asking price. Conversely, of the homes that sat on the market for 2 weeks or more, roughly 80% sold for below their initial asking price. This fact underscores the fierce competition among buyers and the importance of being agile and well-prepared when entering the market. It's also a testament to the current climate, where savvy Sellers are often in the driver's seat and Buyers must bring their A-game. In the current landscape, the ability to react swiftly and decisively can be the key to securing your dream home.

While housing markets elsewhere may experience significant fluctuations, the Monterey Peninsula has shown relative stability. The appeal of the area remains steady, and it has weathered economic downturns better than many other regions. As we bid adieu to the third quarter of 2023, we move into the final chapter of the year – where factors like holidays, weather changes and families looking to move here full time come into play. As we embrace the final chapter of 2023, remember that Monterey's real estate market, though competitive, holds opportunities for both Buyers and Sellers.

Spiro Pettas monterey & pg specialist 831. 214.3377

Featured Property Photo: 116 Via Via De Milagro 116ViaDeMilagro.com

3Q2023 Update

MONTEREY

3Q2023 Sales by Price Range 0 0 0 0 0 2 6 17 12

$8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

37

Total Sales

$43.8M Total Dollar Volume

Get Smart

3Q2023 Snapshot

37 Units Sold in 3Q2023

36 Average Days on Market

Even with 2Q23

16% increase from 3Q22

12% decrease from 2Q23

16% increase from 3Q22

51% increase from 2Q23

35% increase from 3Q22

3Q2023 Top Monterey Sales 450 Dry Creek Road 172 Via Gayuba 31 Via Descanso 242 Mar Vista Drive 8 Antler Place 361 Dry Creek Road 17 La Playa Street 117 Littlefield Road 225 Soledad Drive 741 Lily Street

$2,300,000 $2,100,000 $1,900,000 $1,800,000 $1,750,000 $1,750,000 $1,700,000 $1,590,000 $1,470,000 $1,425,000

251 Via Del Pinar 900 Irving Avenue 799 W Franklin Street 282 Van Buren Street 2150 San Vito Circle 769 Madison Street 1342 Castro Court 170 Van Buren Street 674 Archer Street 780 Toyon Drive

$1,400,000 $1,350,000 $1,335,000 $1,325,000 $1,315,000 $1,300,000 $1,260,000 $1,250,000 $1,247,130 $1,221,000

3Q2023 Update

MONTEREY

# of Sales

Quarterly Sales by Region

Golf Course/Flats

Alta Mesa/Peter's Gate

New Monterey

Monte Vista/Skyline

2%

Average % off list price 3Q2023 Sales

Old Town

t to s u j d a t a th itions Sellers d n o c t e mark e changing move their hous to are able faster.

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$1.26

11%

3Q2023

$1.25

6%

2Q2023

$0.91

-26%

2Q2023

$1.05

-18%

1Q2023

$1.25

11%

1Q2023

$1.27

6%

4Q2022

$1.12

10%

4Q2022

$1.10

-4%

3Q2022

$1.14

21%

3Q2022

$1.18

15%

Carmel Valley Ranch Market Overview

Carmel Valley Ranch sales slowed through the summer to 3 this quarter for a combined $4.3M. This is a bit slower than we're used to seeing as historically we've had 6 closings in the third quarter. Part of this is driven by buyers pushing back against rising prices in the $1.5-3M bracket in the valley.

In a nutshell, 3Q2023 had a 55% dip in overall sales compared to last year’s 3rd quarter. Properties are sitting on the market a bit longer with a 24% increase in days on market. YoY there was a 40% decrease in units sold. While there was a significant decrease across the board, there are still serious buyers who are ready to make a move for those properties that are well priced and check most, if not all, of their boxes.

During this quarter, there were 3 notable home sales in Carmel Valley Ranch; 9908 Club Place Lane that sold for $1.64 million and on the market for 83 days; and 9621 Homestead Road that sold for $2.55 million and on the market for only 5 days. The sale of 9621 Homestead Road stands out as a swift and high-value transaction. The difference in days on market between the two featured sales suggests that properties with desirable floor plans and layouts can move quickly in this market. There was also a vacant 12-acre lot sale for $135,000 just outside the gates on Robinson Canyon Road. This piece of land sold in twelve days and for $10,000 over list price.

Currently, there are a total of 6 active listings and 2 currently in escrow.

The active listings are comprised of 3 condos and 4 free standing homes, reflecting the diversity in housing options that this community offers. It's also worth noting that both properties that are in escrow are toward the bottom of the price range for their respective areas. Further supporting the fact that there are strong buyers out there but the property must be perfectly positioned in the market to move.

If you are considering buying or selling property in Carmel Valley Ranch, I invite you to reach out to me so I may serve you and help you achieve your real estate goals and desires.

Paige Colijn carmel & carmel valley ranch specialist 831.710.1655

Featured Property Photo: 907 Laureles Grade, Carmel Valley Sold in 3Q23

3Q2023 Update

CARMEL VALLEY RANCH

3Q2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

3

Total Sales

$4.3M Total Dollar Volume

Get Smart

3Q2023 Snapshot

3 Units Sold in 3Q2023

33 Average Days on Market

65% decrease from 2Q23

55% decrease from 3Q22

40% decrease from 2Q23

40% decrease from 3Q22

5% decrease from 2Q23

24% increase from 3Q22

3Q2023 Top Carmel Valley Ranch Sales 9621 Homestead Road 9908 Club Place Lane Robinson Canyon Road (Lot)

0 0 0 0 1 0 1 0 1

$2,550,000 $1,642,330 $135,000

3Q2023 Update

CARMEL VALLEY RANCH

# of Sales

Quarterly Sales

Carmel Valley Ranch

1%

Average % above list price 3Q2023 Sales

to g n i l l i w e r Buyers a ose h t r o f mium e r p a ble a y r i pa s e d ha t i w s e i t nd a n proper o i t a c n, lo a l p r o o l f layout.

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$2.10

2%

3Q2023

$2.10

9%

2Q2023

$2.55

59%

2Q2023

$2.50

53%

1Q2023

$2.15

-12%

1Q2023

$2.16

-12%

4Q2022

N/A

N/A

4Q2022

N/A

N/A

3Q2022

$2.05

12%

3Q2022

$1.92

4%

Santa Lucia Preserve Market Overview

Perfect summer temperatures in the 70’s and 80’s brought families and their guests to The Preserve to enjoy outdoor recreation in the security of nature just inland of the Carmel fog. In addition to world class golf, 100 miles of hiking trails with your dog, pickle ball, fishing and paddling in Moore’s Lake and kids summer camp, the Concours and Cocktails with Luxury Car Rally, Hundred Acre Wine dinners, foraging for chanterelles and gardening for vegetables in the Hacienda Garden made for a memorable summer.

It was a strong third quarter with $13.6M invested (an increase of 106% QoQ and up 84% YoY) including a record-breaking home sale at $12.5M with stunning ocean and golf views, a beautiful courtyard with pool and two guest houses sitting just above the Ranch Club. This record sale was twice the median home price showing a wide range of sizes, quality, and views in the Community, ultimately offering a diverse menu of homes for buyers.

After no homesite sales last quarter, two sales occurred in Q3, coming in at $1m and $100k, also showing a diverse menu of options for buyers ranging from big ocean or golf views close to town or close to the Club’s amenities to small, wooded lots in more rural settings.

This quarter’s featured house for sale is 3 Holding Field Run for $5.095m just 9 minutes from the front Gatehouse on a flat 13.3-acre lot in mild temps with great light and southern mountain views. It is 4,356 sqft with 3 beds, 3.5 baths all on a single level with floor to ceiling windows, large bedrooms, a pool, and a recreation barn for entertaining or horses. We also have a brand new build at 24 Arroyo Sequoia listed for $4.9M and a few off market as well.

We were honored to represent both the buyer and seller of a lot at 27 Pronghorn Run and look forward to seeing the dream house coming to fruition.

Brian Keck preserve specialist 831.238.8730

Featured Propety Photo: 24 Arroyo Sequoia, Carmel 24Arroyo.com

3Q2023 Update

SANTA LUCIA PRESERVE

3Q2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

3

Total Sales

$13.6M Total Dollar Volume

Get Smart

3Q2023 Snapshot

3 Units Sold in 3Q2023

286 Average Days on Market

106% increase from 2Q23

84% increase from 3Q22

200% increase from 2Q23

Even from 3Q22

9444% increase from 2Q23

32% increase from 3Q22

3Q2023 Top Preserve Sales 1 Vuelo De Las Palomas 27 Pronghorn Run 34160 Robinson Canyon Road

$12,500,000 $1,000,000 $100,000

*Indicates a Canning Properties Group Sale

1 0 0 0 0 0 0 1 1

3Q2023 Update

SANTA LUCIA PRESERVE

# of Sales

Quarterly Sales by Region

Preserve Lots

$12.5M

30% higher than the previous record sale

Preserve Homes

in k r a m r te a w h g i h New rve e s e r P The

Median Home Sales Price ($M)

Average Home Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

3Q2023

$12.50

112%

3Q2023

$12.50

112%

2Q2023

$6.60

27%

2Q2023

$6.60

27%

1Q2023

N/A

N/A

1Q2023

N/A

N/A

4Q2022

$6.38

18%

4Q2022

$6.38

18%

3Q2022

$5.90

-8%

3Q2022

$5.90

-6%

Tehama

Market Overview Sales of homes and land in Tehama have remained unchanged since last quarter. The only sale recorded this year was for the resale of Lot 10 which we closed in April for $2.5M, after being on the market for 151 days.

Tehama had one home listed for sale this year for $11.95M, at $1,255 sq.ft.

This listing expired in September after 340 days on market, but is available “off market”. Let us know if you have any friends or family looking to buy here. There is still high demand for finished homes in Tehama.

We find interest and showing requests for vacant land has increased in the third quarter of 2023, but as of this date there are no lots currently in escrow. There are 11 lots listed for sale on MLS with prices ranging from $1.975M to $4M. Median list price is $2.75M with an average days on market of 149 days.

We continue to see some resistance from Buyers in Tehama. The current rise in interest rates only affects a small percentage of our Buyers as most of our clients are cash buyers. Homeowner’s insurance continues to create some challenges for our sales in the high fire risk areas, and some of you may have experienced cancellations of your current policies. We still have brokers who will insure homes and hope to see restrictions ease next year as we hopefully make our way through another fire season without experiencing a major wildfire in the area. We are happy to report that Tehama continues to be an industry leader regarding creating a fire-safe community that benefits everyone.

Overall, the real estate market is still fairly robust here on the Peninsula, especially for finished homes that are priced well and in move-in condition. We are committed to continuing our marketing efforts for our listings online, through direct mail and in print. We look forward to an active 4th quarter with more people showing a renewed interest in the community as we head into the holiday season.

Brian Keck tehama specialist 831.238.8730

Featured Property Photo: 25520 Via Malpaso, Carmel ViaMalpaso.com

3Q2023 Update

TEHAMA

2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

1

Total Sales

Lots

$2.5M Total Dollar Volume in 2023

1

Units Sold in 2023

151

Average Days on Market in 2023

82% decrease from 2022

80% decrease from 2022

66% decrease from 2022

Homes

No Home Sales This Year Lots

24 Tehama (Lot 10)

*Indicates a Canning Properties Group Sale

$2,500,000

0 0 0 0 1 0 0 0 0

TEHAMA

# of Sales

Quarterly Sales by Region

3Q2023 Update

Tehama Lots

$2.5M 2023 Sales Price for Tehama Lots

Tehama Homes

st e h g i h e h has t a m a he h t e n i T e c i nd pr a l e g a r a. l u ave s n i n e yP Montere

Tehama 5 Year Home Sales 10 Alta Madera Avenue 27 Tehama 24825 Via Malpaso 24825 Via Malpaso 8275 Carina 25560 Via Malpaso 50 Marguerite 24 Tehama (Lot 10)

$8,500,000 $6,350,000 $5,500,000 $5,250,000 $4,995,000 $3,395,000 $2,750,000 $2,500,000

*Indicates a Canning Properties Group Sale

Monterra Market Overview

Home and land sales in Monterra Ranch continued to be at a standstill last quarter.

Monterra has had no home sales close this year. There are currently two homes listed for sale – one on Monterra Oaks Road for $5.495M and one on Alturas Court for $4.8M, with an average price per square foot of $1,222, and an average of 58 days on the market. The home on Monterra Oaks road recently went into escrow and is due to close at the end of this month. There are three homes that should complete construction by the end of the year and will most likely be priced between $4.6M and $6.2M. Interest in vacant land has increased in the third and fourth quarters of 2023, but as of this date there is nothing in escrow and we are holding to four land sales in 2023 totaling $4.9M (3 on market and 1 off market sale). The average days on market for the sales was 150 days, and median sale price came in at $1.35M. There are currently 16 lots listed on MLS (Canning Properties Group has 9 of them) and we have had some great showings, but Buyers are hesitant. List prices range from $200,000 (this lot has no water) to $2.75M (this is one of the Ranch lots) with an average days on market of 305 days.

We are committed to continuing our marketing efforts online, through direct mail and in print. Homeowner’s insurance continues to create some challenges for our sales in the high fire risk areas but, we have brokers who will insure homes and hope to see restrictions ease next year as we make it through another fire season without experiencing a major wildfire in the area. We look forward to a typically active 4th quarter with more people showing a renewed interest in the community when the spec homes hit the market.

Brian Keck monterra specialist 831.238.8730

Featured Property Photo: 7745 Paseo 7745 Paseo Venado, Monterey 7745PaseoVenado.com

3Q2023 Update

MONTERRA

2023 Sales by Price Range $8M+ $6.0M-$8.0M $4.0M-$6.0M $3.0M-$4.0M $2.5M-$3.0M $2.0M-$2.5M $1.5M-$2.0M $1.0M-$1.5M <$1.0M

4

Total Sales

Lots

$4.9M Total Dollar Volume in 2023

4

Units Sold in 2023

113

Average Days on Market in 2023

23% decrease from 2022

56% decrease from 2022

4% decrease from 2022

Homes

No Home Sales This Year Lots

7580 Monterra Ranch Road 7765 Paseo Venado 7725 Paseo Venado 7548 Monterra Ranch Road (Buyer & Seller)

*Indicates a Canning Properties Group Sale

$1,350,000 $1,350,000 $1,200,000 $1,000,000

0 0 0 0 0 0 0 4 0

MONTERRA

# of Sales

Quarterly Sales by Region

3Q2023 Update

Lots

$4.9M Total Invested in 2023

Homes

hold o t e u n i t es con l a s d rance n u a s L n i h t i ven w e , y d a e st s. challenge

Monterra 5 Year Home Sales 7553 Canada Vista Court 7835 Monterra Oaks Road 8320 Vista Monterra 7557 Canada Vista Court 7635 Mills Road 24253 Via Malpaso 24319 Monterra Woods Road 24316 Monterra Woods Road 7410 Alturas Court 7574 Paseo Vista Place 7564 Paseo Vista Place 8120 Manjares 8320 Vista Monterra

$5,500,000 $5,233,500 $4,925,000 $4,500,000 $4,500,000 $4,350,000 $4,300,000 $4,175,000 $4,100,000 $3,995,000 $3,900,000 $3,875,000 $3,850,000

7568 Paseo Vista 7571 Paseo Vista 7578 Paseo Vista 7422 Alturas Court 7635 Mills Road 7625 Mills Road 24279 Via Malpaso 7418 Alturas Court 7820 Monterra Oaks Road 7548 Monterra Ranch Road 24255 Via Malpaso 7579 Paseo Vista 7579 Paseo Vista

$3,700,000 $3,650,000 $3,575,000 $3,475,000 $3,450,000 $3,400,000 $3,400,000 $3,300,000 $3,200,000 $3,150,000 $2,950,000 $2,550,000 $2,500,000

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PEBBLE BEACH

3364 17 Mile Drive | 336417Mile.com | Approved Plans SANTA LUCIA PRESERVE

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12 Rancho San Carlos Rd | 12RanchoSanCarlos.com

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CORRAL DE TIERRA

CARMEL MEADOWS

15490 Weather Rock Way | 15490WeatherRockWay.com

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Canning Properties Group | 831.238.9718 | CanningProperties.com VIEW THE FULL MARKET REPORT FOR ALL REGIONS AT 3Q2023.COM © 2023 Sotheby’s International Realty. All Rights Reserved. Sotheby’s International Realty® is a registered trademark and used with permission.

Each Sotheby’s International Realty office is independently owned and operated, except those operated by Sotheby’s International Realty, Inc. All offerings are subject to errors, omissions, changes including price or withdrawal without notice. Equal Housing Opportunity. Mike Canning DRE #01004964, Jessica Canning DRE #01920034, Nic Canning DRE #01959355, Ellen Armstrong DRE #02046046, Brian Keck DRE #02070480, Dave Reese DRE #02121762, Paige Colijn DRE #02168140, Anita Jones DRE #01926760, Seth Reese DRE #02202742, & Spiro Pettas DRE #02066568.

Work with a team. Work with the best.

© 2023 Sotheby’s International Realty. All Rights Reserved. Sotheby’s International Realty® is a registered trademark and used with permission. Each Sotheby’s International Realty office is independently owned and operated, except those operated by Sotheby’s International Realty, Inc. All offerings are subject to errors, omissions, changes including price or withdrawal without notice.

Equal Housing Opportunity. Mike Canning DRE #01004964, Jessica Canning DRE #01920034, Nic Canning DRE #01959355, Ellen Armstrong DRE #02046046, Brian Keck DRE #02070480, Paige Colijn DRE #02168140, Anita Jones DRE #01926760, & Spiro Pettas DRE #02066568.