2019 Market Update

2019 Market Update Presented by Canning Properties Group

CanningProperties.com | team@canningproperties.com Sotheby's International Realty | DRE# 00899496

Overview Pebble Beach, Carmel, Carmel Highlands, Quail and The Preserve finished off 2019 very strong, with $263M in sales, which brought the total for 2019 to $943M. Although the annual total is down from 2018 which had $1.04B in sales, 4Q19 was 63% higher than 4Q18 ($161M). Deal-flow followed a similar pattern with more deals in 4Q19 over last year (96 and 73 respectively) but the year finished below that of 2018 by 10%; this difference was primarily driven by a slow start to the year, which was 27% slower than the first half of 2018.

Pebble Beach was particularly strong in 2019 with $454M in sales, representing 48% of total dollars invested this year, which is up a touch from 2018 (42%). Carmel typically slows down in the fourth quarter so it wasn’t a surprise to see it fall a bit from the previous quarter but it was up considerably from the end of 2018. Carmel Highlands sales dropped significantly in 2019 with $44M in sales, which was down by 60% from the previous year. This is primarily due to slowness at the top of the market as there was only one sale above $6M this year in the Highlands. Quail Lodge and Quail Meadows continue to draw interest and consistent sales, although we did see a dip in home sales in Quail Lodge in 2019 (from 12 to 9 in YoY sales). The Preserve continues to build momentum with 10 sales in 2019, matching 2018 but we’re starting to see prices firming with the difference off list price tightening to 5.5% in the last quarter of 2019.

Overall, we’re seeing increased demand for homes in this area as more people move out of the Bay Area full-time, in addition to second home buyers looking for a quiet retreat away from work. As such, we anticipate steady growth over the next 12 months.

Market Overview Pebble Beach Carmel Carmel Highlands Quail Lodge / Quail Meadows Santa Lucia Preserve Team Update & Market Leaders

4-5 6-9 10-13 14-17 18-20 22-25 26-28

Mike Canning

Jessica Canning

DRE#01004964 831.596.1171 mike@mikecanning.com

DRE# 01920034 831.238.5535 jessica@canningproperties.com

Ellen Krausse

Natalie Pitschke

DRE# 02046046 831.204.2204 ellen@canningproperties.com

DRE# 02041776 831.521.7363 natalie@canningproperties.com

Nic Canning

DRE# 01959355 831.241.4458 nic@canningproperties.com

Brian Keck

DRE# 02070480 831.238.8730 brian@canningproperties.com

Featured Property Photo: 1504 Bonifacio, Pebble Beach

Market Insight All Regions

4Q19 Sales by Price Range

96

Total Sales

Median Sales Price ($M) 4Q19

Area

YoY% Change

$1.74

Carmel

-5%

$1.27

Carmel Highlands

-38%

$1.90

Pebble Beach

21%

$3.28

Quail

152%

$2.04

Preserve

-8%

$1.81

Overall

10%

$8M+

3

$6M - $8M

4

$4M - $6M

11

$3M - $4M

4

$2.5M - $3M

5

$2M - $2.5M

16

$1.5M - $2M

14

$1M - $1.5M

23

<$1M

16

Total Annual Sales

Average Sales Price ($M) 4Q19

Area

YoY % Change

$2.10

Carmel

-4%

$2.44

Carmel Highlands

-20%

$3.37

Pebble Beach

60%

$3.52

Quail

162%

$2.14

Preserve

-3%

$2.74

Overall

24%

4 | Market Overview

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

4Q19 Update All Regions

# of Sales

Quarterly Sales by Region

Carmel

Sales Price Range

Carmel Highlands

Pebble Beach

Preserve

Quail

4Q18

4Q19

2018

2019

10 Year Ave. 4Q Sales

10 Year Ave. Annual Sales

<$1.0M

7

16

41

43

23

91

$1.0M-$1.5M

22

23

104

98

20

86

$1.5M-$2.0M

17

14

83

59

15

57

$2.0M-$2.5M

7

16

49

47

9

34

$2.5M-$3.0M

8

5

32

37

4

21

$3.0M-$4.0M

3

4

40

32

6

27

$4.0M-$6.0M

5

11

28

29

5

19

$6.0M-$8.0M

4

4

19

11

2

7

$8M+

0

3

11

10

2

7

Total Sales

73

96

407

366

86

348

Market Overview | 5

Pebble Beach Market Overview

Notwithstanding a strong finish to the year (40 sales in 4Q), Pebble Beach’s market slowed in 2019 with 144 total transactions, down 7.7% year-over-year from 2018.

Total Dollar Volume for 2019 yielded better results with $454M in sales ($134.94 in 4Q), bolstered by another record setting year for the top of Pebble’s market (10 sales above $8M). Worth noting that the $454M in 2019 eclipsed the record previously set in 2018 ($435.23M).

Median sales prices continued to climb across the board from 2018 – rising 8% in Central Pebble Beach ($4.43M), 8.1% in MPCC ($1.62M) and 5.5% in Upper Forest ($1.09M) – buoyed by steady demand and tight inventory levels.

Despite the robust year at the top of Pebble’s market, the >$8M price range is showing signs of slowing heading into 2020 with the longest absorption rate (21 months to sell current inventory) and most saturated inventory per price range (9 actively listed).

For the Central Pebble Beach and MPCC areas, the $4M-$6M price bracket had a stellar year – posting the most annual transactions to-date with 11 and 4 sales respectively.

Conversely, the bottom of MPCC’s market (<$1M) evaporated in 2019 with just 2 sales as demand outstripped supply in this hotly pursued region of Pebble Beach. Just above the $1M threshold, the $1M-$2M price brackets (in MPCC) saw the tightest negotiations with sales averaging only 4.3% off of list prices. Sellers can anticipate this sought-after sub-market to remain highly competitive - thus favoring sellers – as we enter 2020.

With 22 sales for the year (5 sales in 4Q), the Upper Forest continued its trend back to historical averages (20.1 sales/year) - matching 2018 total sales. Worth noting this area in particular has been impacted (more than others in Pebble Beach) by the tightening regulations in the home owner insurance marketplace.

6

Featured Property Photo: 1565 Riata Road, Pebble Beach 1565Riata.com

4Q19 Update Pebble Beach

4Q19 Sales by Price Range 3 0 6 1 4 5 5 11 5 40

$8M+ $6M - $8M $4M - $6M $3M - $4M $2.5M - $3M $2M - $2.5M $1.5M - $2M $1M - $1.5M <$1M Total Sales

40 Total Sales

$134.9M Total Dollar Volume

Get Smart

40 Units Sold in 4Q19

4Q19 Snapshot

129 Average Days on Market

1% decrease from 4Q18

23% increase from 3Q19

3% increase from 4Q18

14% increase from 3Q19

40% increase from 4Q18

8% increase from 3Q19

2019 Top Pebble Beach Sales 3256 17 Mile Drive 1536 Cypress Drive 3200 17 Mile Drive 1552 Cypress Way Casa Ladera 3317 17 Mile Drive 3908 Ronda Road 3208 Stillwater Lane 1487 Padre Lane

$24,000,000 $24,000,000 $21,000,000 $18,130,000 $14,735,000 $14,500,000 $11,446,000 $10,250,000 $8,850,000

Indicates a Canning Properties Sale

3191 Del Ciervo 3187 Cortez Road 1531 Riata Road 22 Poppy Lane 3191 17 Mile Drive 1212 Portola Road 1230 Portola Road 4042 Sunridge Road 1020 Rodeo Road

$8,150,000 $7,500,000 $6,790,000 $6,000,000 $5,987,500 $5,865,000 $5,850,000 $5,500,000 $5,200,000

Pebble Beach | 7

Quarterly Sales by Region MPCC

Upper Forest

# of Sales

Central Pebble Beach

elow b s e l sa r e w ing e v i F r d e ar $1M es up. pric

8%

Average % off list price 4Q19 Sales

Median Sales Price ($M)

2% increase from 4Q18

1.5% increase from 3Q19

Average Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

4Q2019

$1.90

21%

4Q19

$3.37

60%

3Q2019

$2.30

23%

3Q19

$3.13

-24%

2Q2019

$2.19

51%

2Q19

$3.50

51%

1Q2019

$1.21

-22%

1Q19

$2.43

-11%

4Q2018

$1.58

-6%

4Q18

$2.11

-16%

8 | Pebble Beach

4Q19 Update Pebble Beach

Pebble Beach Ocean & Golf Front Sub-Region Market Overview

2019 brought 5 sales along Pebble Beach’s famed golf and oceanfront, which amounted to a 53% rise over 2018 in total dollar volume and also the second most in activity over the last 10 years for that sub-market. With 5 properties on the market (3 golf front, 2 oceanfront), we anticipate more activity to occur along these frontline properties as we head into 2020, although we may see the bargaining needle shift towards buyers throughout the year.

Sales Average DOM Listing Discount Median Sales Price

2010 3 78 -19 $17.50

2011 1 277 -33 $4.00

2012 1 0 0 $14.00

2013 3 10 -13 $22.50

2014 6 616 -4 $16.50

2015 4 154 -14 $10.23

2016 4 168 -9 $17.00

2017

2018 3 27 -11 $25.25

2019 5 407 -19 $21.00

MPCC Frontline Sub-Region Market Overview

For the second year in a row, the frontlines along MPCC’s Shore and Dunes courses posted only 2 sales – down from its historical norm (3.1 average sales per year) despite strong demand for this coveted sector. Razor-thin inventory levels limited sales in 2019 and with just 1 actively listed on the market, all signs indicate that trend-line will remain the same in 2020 as well.

Sales Average DOM Listing Discount Median Sales Price

2010 2 55 -15.1 $2.63

2011

2012 3 7 -5.1 $4.25

2013 1 229 -10.4 $3.14

2014 4 178 -7.1 $3.67

2015 4 197 -6.2 $4.64

2016 6 160 -8.2 $4.70

2017 6 208 -6.2 $4.15

2018 2 37 -2.0 $5.20

2019 2 21 -6.6 $5.20

Spanish Bay Condos Sub-Region Market Overview

With 4 sales in 2019 – ranging in price from $3.025M to $4.3M - the Residences at Spanish Bay posted another above-average year (typically average 3.4 sales/year). The median sales price rose yet again this year (up 63% yearover-rear from ’18), bolstered by two sales of ocean-view units located atop the middle area of the complex, which sold for $4.3M and $3.75M, respectively. In line with overall shift in market trends, demand remains high for these more turn-key type properties.

Sales Average DOM Listing Discount Median Sales Price

2010 3 176.3 -9.6 $2.68

2011 4 261.3 -10.7 $2.00

2012 4 13.3 -2.8 $2.06

2013 2 138.0 -9.1 $2.90

2014 1 82.0 -5.0 $1.90

2015 4 3.0 -5.2 $3.75

2016 3 65.7 -3.1 $3.60

2017 6 91.7 -5.8 $3.40

2018 4 116.0 -3.3 $3.07

2019 4 32.8 -3.3 $3.60

Pebble Beach - Sub Regions Overview | 9

Carmel

Market Overview Carmel sales showed a seasonal dip in the fourth quarter to 42 closed escrows, reaching a total of $88.2M. Although this is down from last quarter when 51 deals closed for $99M, it is up significantly from 4Q18, where 32 deals closed for $70M. Downtown Carmel is still suffering from a lack of inventory right now, with just 54 active listings across all regions, which is having an impact on what regions buyers are looking at: Northeast Carmel topped the list this quarter with almost $20M in sales, beating both Carmel Point ($18M) and the Golden Rectangle ($16M). The Golden Rectangle usually averages approximately 10 deals but was down to just 6 this quarter, the slowest velocity in over 4 years. Carmel Point also came in with 6 closed escrows this quarter, led by our sale at 26325 Isabella Avenue, which closed for $7.29M. Even with strong demand for downtown Carmel right now, buyers are balking at overpriced listings with the average days on market for actively listed properties currently hovering at about 132 days but homes that have sold this quarter sold in an average of 72 days.

There are early signs that this market is tilting toward a buyersâ&#x20AC;&#x2122; market as buyers are gaining more bargaining power in deals; the discount off of list price has notched up to 5.4%, which is almost double what it was in 4Q18 (2.8%). This has also resulted in prices starting to fall, with the median sales price for 2019 dropping to $1.85M, which is down 7.6% from last year. However, part of this is due to slower velocity in the higher priced regions (Carmel Point and the Golden Rectangle) which both saw increases in median sales prices this year.

Overall, the demand continues to be very strong for Carmel with 176 deals closing in 2019, down slightly from the 187 last year and down 15% from 2017, which was the high water mark for the decade. As we enter a new decade, we anticipate continued strong interest from the Bay Area looking for vacation homes (which has increased over the past 6 months) and continued growth at a steady pace through 2020.

10

Featured Property Photo: Crespi 6 SE of Mountain View, Carmel-by-the-Sea Crespi6SEofMountainView.com

4Q19 Update Carmel

4Q19 Sales by Price Range $8M+ $6M - $8M $4M - $6M $3M - $4M $2.5M - $3M $2M - $2.5M $1.5M - $2M $1M - $1.5M <$1M

42 Total Sales

$88.2M

Total Dollar Volume

Get Smart

42

Units Sold in 4Q19

4Q19 Snapshot

72 Average Days on Market

0 2 3 1 1 10 9 9 7

14% decrease from 4Q18

11% decrease from 3Q19

5% decrease from 4Q18

18% decrease from 3Q19

12% increase from 4Q18

11% decrease from 3Q19

2019 Top Carmel Sales 26325 Isabella Avenue NEC Scenic & 8th 26314 Ocean View Avenue Carmelo 4SE of Ocean Scenic 4SE Of 13th 2417 Bay View Avenue Carmelo 3SW of 11th 2586 Santa Lucia Avenue 2337 Stewart Way

$7,287,500 $6,850,000 $6,400,000 $6,350,000 $6,300,000 $6,200,000 $5,725,000 $4,700,000 $4,700,000

Indicates a Canning Properties Sale

25434 Hatton Road $4,500,000 San Antonio 4SE of 2nd $4,400,000 26125 Scenic Road $4,250,000 Camino Real 2NW of 4th $4,195,000 Santa Rita 2NW of 6th $4,050,000 Lincoln 3NW of Santa Lucia $3,995,000 Lincoln 4SW of 12th $3,775,000 SEC of Lopez & 2nd $3,750,000 San Carlos 2SE of 13th $3,700,000

Carmel | 11

Quarterly Sales by Region Golden Rectangle

Hatton Fields

Northeast Carmel

Northwest Carmel

Southeast Carmel

# of Sales

Carmel Point

ear p p a P rices hit a to have u. platea

5.4%

Average % off list price 4Q19 Sales

Median Sales Price ($M)

3% increase from 4Q18

2% increase from 3Q19

Average Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

4Q19

$1.74

-5%

4Q19

$2.10

-4%

3Q19

$1.65

-25%

3Q19

$1.95

-22%

2Q19

$2.05

6%

2Q19

$2.32

1%

1Q19

$2.13

12%

1Q19

$2.37

4%

4Q18

$1.83

10%

4Q18

$2.18

9%

12 | Carmel

4Q19 Update Carmel

Carmel "3C's"

Sub-Region Market Overview Tight supply continues to hold back velocity in the Golden Rectangle and 3 C’s in particular; the 24 sales this year was a 14% drop from last year. We finally saw a drop in the median sales prices as buyers begin to push back on terms. Additionally, the availability of Malpaso water in Carmel led to a run of speculative deals in downtown Carmel and now that the program is exhausted, we’re likely seeing the last wave of new construction for a while.

Sales Average DOM Listing Discount Median Sales Price

2010 18 112 -8.9 $1.42

2011 18 94 -4.3 $2.21

2012 31 135 -5.5 $1.33

2013 21 133 -4.0 $2.05

2014 20 175 -3.3 $2.14

2015 14 72 -4.1 $2.20

2016 21 71 -4.2 $2.17

2017 25 47 -3.7 $2.24

2018 28 37 -3.4 $2.71

2019 24 59 -2.4 $2.45

Carmel Point

Sub-Region Market Overview The core parts of Carmel Point had just 11 sales this year, down 35% from last year and the lowest activity levels seen in a decade. However, given the larger lot sizes of the point, we’re seeing much higher sales prices on the Point when compared to other regions in downtown Carmel, with 2/3 of active listings on the Point coming in above $3M. Sales Average DOM Listing Discount Median Sales Price

2010 13 95 -8.4 $1.83

2011 12 133 -7.1 $1.95

2012 13 289 -11.4 $3.00

2013 24 278 -6.8 $2.25

2014 19 138 -4.9 $2.84

2015 15 182 -4.2 $2.60

2016 14 67 -5.9 $2.49

2017 18 98 -4.7 $4.16

2018 17 121 -5.3 $2.90

2019 11 143 -7.2 $4.25

Scenic

Sub-Region Market Overview Sales finally slowed on Scenic this year with just 3 deals, half what it was last year and the slowest velocity in a decade. Somewhat surprisingly, buyers are preferring fixers on Scenic currently, as they’re wanting to customize the house themselves. This is unique on Scenic as buyers tend to want a finished product in the $24M bracket.

Sales Average DOM Listing Discount Median Sales Price

2010 2 178 -25.0 $4.25

2011 4 133 -5.4 $5.20

2012 6 331 -11.4 $5.46

2013 9 263 -6.2 $4.90

2014 7 183 -4.8 $4.03

2015 4 133 -5.8 $7.20

2016 5 184 -4.4 $8.90

2017 8 109 -9.0 $5.62

2018 6 97 4.4 $6.40

2019 3 72 -12.5 $6.30

Carmel - Sub Regions Overview | 13

Carmel Highlands Market Overview

Carmel Highlands and Carmel Meadows experienced a quiet 4Q with $9.78M invested in the region (4 units sold). This is a 46% decrease in dollar volume from 4Q18 ($17.95M), a 23% decrease from 3Q19 ($12.7M), and a 45% decrease from the 4Q seasonally adjusted average ($17.7M). Although the region stabilized in 3Q19 after a slow start to the year, a stagnant 4Q brought the area back down to a total dollar volume of $44.1M in sales for 2019 which is a 31% decrease from the 10-year annual average of $64.1M in sales.

Active inventory in the Highlands and Meadows has expanded to 22 homes (6 oceanfront) with residential single-family homes hovering at an average DOM of 160 days. At this point last year, there were 16 homes and 6 lots on the market (5 oceanfront).

Although homes are typically pulled off the market to rest during the holidays, it appears as if more sellers in the Highlands are waiting out the season and engaging actively in marketing their homes for sale in 1Q. The Highlands market continues to present unique opportunities for value oceanfront buys; the sale this quarter in Otter Cove involved a 10% discount off the most recent list price (sale price: $6.25M). Note this listing had been on and off the market since 2014 and was originally listed for $7.95M. Also worthy of note is the behavior at the market bottom in the Highlands in 4Q: 3 of the 4 sales in the region this quarter were in under $1.5M, all of which were full price transactions. Days on market for product at the bottom of the market contracted to an average of 13 days this quarter; In 4Q18, homes selling <$1.5M in the Highlands were on the market for more than 3 times as long (46 days on average). For reference, the 10-year average DOM for homes <$1.5M in the Highlands is 86 days. Net/net, this tempo involves continued velocity in the lowest price bracket with rising demand for entry level properties.

14

Featured Property Photo: 165 Spindrift Road, Carmel Highlands 165Spindrift.com

4Q19 Update Carmel Highlands

4Q19 Sales by Price Range 0 1 0 0 0 0 0 2 1

$8M+ $6M - $8M $4M - $6M $3M - $4M $2.5M - $3M $2M - $2.5M $1.5M - $2M $1M - $1.5M <$1M

4 Total Sales

$9.78M Total Dollar Volume

Get Smart

4

Units Sold in 4Q19

4Q19 Snapshot

54 Average Days on Market

46% decrease from 4Q18

23% decrease from 3Q19

43% decrease from 4Q18

33% decrease from 3Q19

17% decrease from 4Q18

10% increase from 3Q19

2019 Top Carmel Highlands Sales 30620 Aurora Del Mar 30530 Aurora Del Mar 2715 Ribera Road 157 Carmel Riviera Drive 153 San Remo Road 101 Yankee Point Drive 195 San Remo Road 27030 Meadow Drive 120 Yankee Point Drive

$6,250,000 $5,295,000 $5,200,000 $2,800,000 $2,700,000 $2,495,000 $2,400,000 $2,225,000 $1,945,000

Indicates a Canning Properties Sale

193 San Remo Road 30774 San Remo Road 31 Mentone Drive 5 Mal Paso Road 164 Spindrift Road A 3010 Ribera Road 30772 San Remo 99 Corona Road 119 Oak Way

$1,817,500 $1,775,000 $1,610,000 $1,495,000 $1,300,000 $1,164,000 $1,050,000 $1,015,000 $980,000

Carmel Highlands | 15

Quarterly Sales by Region

# of Sales

Central Pebble Beach MPCC Upper Forest Carmel Highlands Carmel Meadows

UPDATE

e ist pric l f f o t n s Disc ou arter a u q s i h t shrinks in the s e l a s of 75% price. l l u f d nds s ol a l h g i H

2.6%

Average % off list price 4Q19 Sales

Median Sales Price ($M)

1% decrease from 4Q18

6.5% decrease from 3Q19

Average Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

4Q19

$1.27

-38%

4Q19

$2.44

-20%

3Q19

$1.49

-70%

3Q19

$2.12

-67%

2Q19

$2.23

16%

2Q19

$2.56

4%

1Q19

$1.85

-38%

1Q19

$1.85

-45%

4Q18

$2.05

-16%

4Q18

$3.04

-5%

16 | Carmel Highlands

Oceanfront Properties Carmel Highlands

New Contemporary Oceanfront Estate 165Spindrift.com

Oceanfront Contemporary 30500AuroraDelMar.com

Artistic Oceanfront 36654Highway1.com

Modern Oceanfront Hideaway 36648Highway1.com

Quail Lodge/ Meadows Market Overview

Quail Lodge held steady this quarter with 4 more sales bringing the total for 2019 to 13 sales â&#x20AC;&#x201C; just passing the 10 year average of 12.3 sales â&#x20AC;&#x201C; but down when compared to last year when 18 deals closed. Of the 13 sales this year, 4 were condos, which have averaged over $942K, the highest point in over a decade for the area. For single family residences, weâ&#x20AC;&#x2122;re starting to see prices plateau in Quail Lodge with the median sales price dropping to $1.53M in 2019, down 13.5% from the historic peak hit last year ($1.76M). However, we continue to see strong demand for single level, renovated homes, which the Quail Lodge market continues to deliver, so we anticipate continued strength into 2020.

Quail Meadows had a strong 2019 with 4 sales, all of which closed $3.75M or higher. All-in, over $20M in sales closed in 2019, which was more than double that of 2018 ($9.95M). It appears that Quail Meadows has finally rebounded with a median sales price in 2019 of $5.04M, up 48% from last year, over twice that of 2011, and the highest seen in well over a decade.

Current buyer demographics in Quail Lodge and Quail Meadows continue to shift toward young family households as the region presents unique opportunity afforded by larger lots, fantastic schools, and a touch of sunshine. We anticipate this trend will stay true through 2020 as more families migrate south from the Bay Area to settle on the Central Coast.

18

Featured Property Photo: 5465 Quail Meadows Drive, Carmel 5465QuailMeadows.com

4Q19 Update Quail Lodge/Meadows

4Q19 Sales by Price Range 0 1 2 0 0 1 0 1 1

$8M+ $6M - $8M $4M - $6M $3M - $4M $2.5M - $3M $2M - $2.5M $1.5M - $2M $1M - $1.5M <$1M

6 Total Sales

$21.1M Total Dollar Volume

Get Smart

6

Units Sold in 4Q19

4Q19 Snapshot

60 Average Days on Market

113% increase from 4Q18

161% increase from 3Q19

20% increase from 4Q18

50% increase from 3Q19

25% increase from 4Q18

70% decrease from 3Q19

2019 Top Quail Lodge/ Meadows Sales 5483 Covey Court 5493 Oak Trail 7030 Valley Knoll Road 5482 Quail Meadows Drive 5452 Quail Meadows Drive 7054 Valley Greens Circle 7044 Valley Greens Circle 8018 River Place 7027 Valley Greens Circle

$6,250,000 $5,884,820 $4,550,000 $4,187,500 $3,750,000 $2,300,000 $2,280,000 $2,015,000 $1,725,000

Indicates a Canning Properties Sale

8081 Lake Place $1,700,000 7048 Valley Greens Circle $1,525,000 7074 Valley Greens Circle $1,450,000 8071 Lake Place $1,425,000 7020 Valley Greens Drive #16 $955,000 7020 Valley Greens Drive #1 $950,000 7026 Valley Greens Circle #3 $950,000 7026 Valley Greens Circle #10 $915,000

Quail / Santa Lucia Preserve | 19

Quarterly Sales by Region Quail Meadows

# of Sales

Quail Lodge

ee s o t g in Start o om r g n i t otia g e n e ge. mor d o L l i in Q ua

6.1%

Average % off list price 4Q19 Sales

Median Sales Price ($M)

2% increase from 4Q18

2% increase from 3Q19

Average Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

4Q19

$3.28

152%

4Q19

$3.52

162%

3Q19

$0.95

-46%

3Q19

$1.62

-7%

2Q19

$2.01

9%

2Q19

$2.48

27%

1Q19

$1.85

N/A

1Q19

$1.85

N/A

4Q18

$1.30

1%

4Q18

$1.35

-21%

20 | Quail Lodge / Meadows

Featured Properties Carmel & Pebble Beach

Coming Soon - Scenic Road DiscreetProperties.com

Your Resort Home in the Sun RetreatinCarmelValley.com

Sweeping Ocean Views in Pebble Beach 1504Bonifacio.com

Vintage Carmel Charm Casanova6SEof4th.com

Carmel-by-the-Sea Dream Home Doloresand13th.com

Minimalist Tehama Retreat 8275Carina.com

Build Your Dream House on Scenic 26319Scenic.com

Farm to Table Estate with Valley Views 5465QuailMeadows.com

Santa Lucia Preserve Market Overview

The Preserve had a strong finish to the year with two home sales and two lot sales in 4Q19, extending the consecutive quarter selling streak to a record 9 quarters; however, total dollars sold ($20.5M) fell by 33% YoY from a very strong 2018 ($30.6M).

Inventory remains high and diverse (13 active homes and 47 lot listings), offering buyers options and strong negotiating positions. However, as inventory continues to move, the market is increasingly stabilizing; the list discount was only 5.5% this quarter, down from last quarter (10.3% off ask) and 4Q19 (9.4% off ask).

Quality product in the $3M-$4M range in moderately-sized homes near the front gatehouse and near Ranch and Golf Clubs remains the sweet spot for demand. We are honored to have represented both the seller and buyer at the single level contemporary house at 3 Holding Field Run and the elegant country home at 7 Corral Run. We are also honored to have been the top sales team in the Preserve in total gross dollars sold at over $7.1 million.

Similarly to Quail, the Preserve is experiencing an influx of young working professionals in search of a quiet retreat to supplement their footprint in the Bay Area. They're increasingly drawn to the hiking trails, community events, and natural beauty the Preserve is known for.

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Featured Property Photo: 32 Potrero Trail, Carmel 32Potrero.com

4Q19 Update Preserve

4Q19 Sales by Price Range 0 0 0 2 0 0 0 0 2

$8M+ $6M - $8M $4M - $6M $3M - $4M $2.5M - $3M $2M - $2.5M $1.5M - $2M $1M - $1.5M <$1M

4 Total Sales

$8.58M Total Dollar Volume

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4Q19 Snapshot

4

Units Sold in 4Q19

201 Average Days on Market

2019 Top Preserve Sales Homes 7 Corral Run 5 Red Tail Trace 36 Pronghorn Run 3 Holding Field Run 33 Rancho San Carlos Road

Lots $4,045,000 $3,925,000 $3,700,000 $3,100,000 $1,700,000

Indicates a Canning Properties Sale

16 Touche Pass 5 Mesa Trail 3 Corral Run 2 Wild Boar Run 41 Pronghorn Run

$995,000 $975,000 $975,000 $800,000 $250,000

Santa Lucia Preserve | 23

Quarterly Sales Preserve Houses

# of Sales

Preserve Lots

rly a e l c s gi P ric in ilizing, stab

5.5%

Average % off list price 4Q19 Sales

Median Sales Price ($M)

4% decrease from 4Q18

4.8% decrease from 3Q19

Average Sales Price ($M)

Quarter

Median

YoY % Change

Quarter

Average

YoY % Change

4Q19

$2.04

-8%

4Q19

$2.14

-3%

3Q19

$1.70

-50%

3Q19

$1.70

-50%

2Q19

$1.00

-53%

2Q19

$2.01

-7%

1Q19

$2.09

-44%

1Q19

$2.09

-52%

4Q18

$2.21

-39%

4Q18

$2.21

-39%

24 | Preserve

Featured Properties Santa Lucia Preserve

Private Hacienda Retreat PronghornRun.com

Expansive Valley Views 70ChamisalPass.com

Timeless Single Level Hacienda 59RanchoSanCarlos.com

Private Hacienda Retreat 15MesaTrail.com

476 Acre Ocean View Ranch 10RanchoSanCarlos.com

Contemporary Hacienda with Stunning Views 32Potrero.com

Tranquil Equestrian Escape 14Vasquez.com

Coming Soon DiscreetProperties.com

Santa Lucia Preserve | 25

Providing the Best Service for our Buyers & Sellers

Over $201M in sales in 2019

#1

Sotheby’s International Realty Team in Carmel

#2

Sotheby’s International Realty Team in California

#3

Sotheby’s International Realty Team Nationwide

Work with a team; work with the Best.

A perennial leader for nearly 30 years, offering deep expertise in the Pebble Beach and Carmel markets and the highest level of professionalism and service. ​ Two generations offer a unique perspective on the local markets and communities; we have the team depth to handle the needs of buyers and sellers at a moments notice. ​ Cutting edge website and market reports keeping buyers and sellers well-informed of market trends and off-market possibilities. ​ Leverage the best technology to create targeted online campaigns and track user behavior to showcase your home.

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Market Leaders Connected By A Powerful Brand.

Amplified By An Exclusive Collaboration.

Your local area specialist: Jessica Canning The Market Leaders is a select group of Sotheby’s International Realty top producing agents in strategic markets representing distinguished clientele and world class properties. We cross-market each other’s listings, convene on industry best practices, and share market intelligence. We provide proprietary marketing initiatives and greater exposure to top feeder markets and qualified buyers.

Canada, Toronto - Andy Taylor CA, Coastal San Diego - Eric Iantorno CA, Los Angeles - Marc Noah CA, Lake Tahoe/Truckee - Jeff Hamilton CA, Malibu/Santa Monica - Shen Schulz CA, Orange County – Sean Stanfield CA, Pebble Beach/ Carmel - Jessica Canning CA, San Diego + Coast - K Ann Brizolis CA, San Francisco - Gregg Lynn CA, San Francisco - Neill Bassi CA, Santa Barbara/Montecito - Dusty Baker CA, Silicon Valley - Michael Dreyfus CO, Aspen/Snowmass - Chris Klug CO, Denver/Boulder - Josh Behr CO, Vail/Beaver Creek - Tye Stockton CT, Greenwich - Leslie McElwreath FL, Boca Grande - Rich Taylor FL, Destin - Blake Morar FL, Miami - Dennis Carvajal FL, Miami - Jorge Uribe FL, Palm Beach - Cristina Condon FL, Palm Beach - Frances Peter FL, Palm Beach - Todd Peter FL, South Florida - Mayi de la Vega

HI, Big Island of Hawaii - Dodie MacArthur HI, Big Island of Hawaii - Molly Harris IL, Chicago - Ryan Preuett IL, Chicago - Tim Salm MA, Boston - Beth Dickerson MA, Boston - Michael Carucci MA, Cambridge/Boston - Lauren Holleran NM, Santa Fe - Tim Van Camp NV, Lake Tahoe - Lexi Cerretti NV, Las Vegas - Kristen Routh-Silberman NY, Hamptons - Dana Trotter NY, New York City - Jeremy Stein NY, New York City - Nikki Field NY, New York City - Amanda Field Jordan TX, Austin - Kumara Wilcoxon TX, Austin/San Antonio - J Kuper TX, Dallas – Faisal Halum TX, Dallas - Bernard Uechtritz TX, Houston - Walter Bering UT, Salt Lake City - Thomas Wright WA, Bellevue/Seattle - Becky Gray WA, Seattle - Moira Holley WA, Seattle/Bellevue - Stacy Jones WI, Milwaukee – Peter Mahler Washington, D.C. - Michael Rankin

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2019 Canning Properties Group Sales 3200 17 Mile Drive Represented: Buyer & Seller $21,000,000

5482 Quail Meadows Drive Represented: Buyer $4,187,000

157 Carmel Riviera Drive Represented: Seller $2,800,000

1552 Cypress Drive Represented: Seller $18,130,000

7 Corral Run Represented: Buyer & Seller $4,045,000

NW Corner of Casanova & Fraser Represented: Buyer $2,400,000

Casa Ladera Represented: Buyer & Seller $14,735,000

Lincoln 3 NW of Santa Lucia Represented: Buyer $3,995,000

130 Asilomar Boulevard Represented: Seller $2,462,000

3208 Stillwater Lane Represented: Seller $10,250,000

Lincoln 4 SW of 12th Represented: Seller $3,775,000

7054 Valley Greens Circle Represented: Buyer $2,300,000

15 Alta Madera Represented: Buyer $8,500,000

San Carlos 2 SE of 13th Represented: Buyer & Seller $3,700,000

26595 Canada Way Represented: Buyer $1,800,000

26325 Isabella Avenue Represented: Seller $7,287,500

1474 Viscaino Road Represented: Buyer $3,650,000

25233 Ward Place Represented: Seller $1,700,000

5493 Oak Trail Represented: Seller $5,884,820

26040 Ridgewood Road Represented: Seller $3,300,000

3019 Sherman Road Represented: Buyer $1,600,000

3301 17 Mile Drive, #15 Represented: Buyer & Seller $4,376,000

3 Holding Field Run Represented: Buyer & Seller $3,100,000

3572 Taylor Road Represented: Seller $1,550,000

Camino Real 2 NW of 4th Represented: Buyer $4,195,000

56 Spanish Bay Circle Represented: Buyer & Seller $3,025,000

1185 Santa Ana Street Represented: Buyer $670,000

*Source: Statistics pulled from MLS as of 1/1/20

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Featured Property Photo: 1456 Riata Road, Pebble Beach