4Q2023 Market Update

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4Q2023 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 | Arleen Hardenstein | Alecia Hull

Overview After a turbulent and raucous few years in real estate, it is becoming increasingly clear that the peaks of 2020-2022 are behind us, as is the trough that was 2023. Deal flow bottomed out at 574 last year, which is the lowest number of deals since 2008, when just 477 deals closed. However, we’ve seen buyers once again approach the real estate investment process judiciously, but personally. Unlike the stock market or other investment types, real estate is indeed a very personal decision as both buyers and sellers decide just how they want to live their lives - and move accordingly. Deal flow dropped to just 128 deals in 4Q23, down from the 155 in 3Q23 but up slightly from 4Q22 so overall, it looks like the market is improving slowly but steadily.

Over the last few months of the year we saw many more buyers and sellers start to approach and enter the market. However, buyers are confronted with learning about this highly nuanced market through extremely tight inventory. We anticipate a brief pulse of new inventory in January and February, which is historically standard for this area but, don’t foresee a significant surge in new inventory coming our way throughout 2024.

With the top of the market quiet through most of 2023, we’re seeing the median prices fall a bit in Carmel and the Highlands, but this is more a function of the higher velocity of sales at the bottom of the market rather than overall pricing changes. Pacific Grove registered a stunning 20% median price bump in 4Q23 (to $1.38M) and Monterey notched up 5% to $1.19M. However, Carmel was down 13%, Carmel Highlands down 34%, Quail down 8% and Monterra down 3% this quarter. Pebble Beach continues to suffer from a particularly acute inventory shortage, so there were only 16 deals that closed but that ended up lifting median sales prices by 5% in prices to $2.93M. The good news is basic market fundamentals are sound right now with buyers overwhelmingly looking for move-in ready properties (and paying a premium for them).

Cover Home: Scenic 6 SW of Ocean Ave, Carmel Scenic6SWofOcean.com

Market Insight

ALL REGIONS

4Q2023 Sales by Price Range

128

Total Sales

$8M+

17

$6.0M-$8.0M

32

$4.0M-$6.0M

24

$3.0M-$4.0M

8

$2.5M-$3.0M

16

$2.0M-$2.5M

15

$1.5M-$2.0M

10

$1.0M-$1.5M

1

<$1.0M

5

Total Annual Sales

Median Sales Price ($M)

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

4Q2023 Update

ALL REGIONS

Quarterly Sales by Region

1Q2022

2Q2022

3Q2022

4Q2022

1Q2023

2Q2023

3Q2023

4Q2023

Pebble Beach Carmel Carmel Highlands

32 51 9

24 50 12

28 35 7

24 27 2

39 27 6

20 32 2

21 50 9

16 33 4

Quail Preserve Pacific Grove Monterey Carmel Valley Ranch Monterra & Tehama Total Sales

4 8 30 51 1 6 192

3 3 47 38 3 8 188

1 3 49 30 5 2 160

2 4 31 32 0 3 125

2 1 38 33 3 1 150

3 1 35 42 5 1 141

3 3 30 36 3 0 155

4 1 36 31 3 0 128

Historic Sales Averages by Price Range Sales Price Range

4Q2022

4Q2023

3Q - 4Q 22

3Q - 4Q 23

10 Year Avg.. 4Q Sales

3Q - 4Q 10 Year Avg.

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

23 27 16 16 10 10 10 7 6 125

17 32 24 8 16 15 10 1 5 128

51 67 47 30 18 24 19 15 14 285

35 65 52 31 33 27 25 3 12 283

71 42 28 13 11 11 11 4 5 197

153 89 58 30 23 25 21 8 10 416

Pebble Beach Market Overview

As anticipated during the winter holiday season, deal flow cooled in the 4th quarter with 16 sales - down from the 21 posted in 3Q23. This brings the total amount of sales for the year to 96, which is slightly below the 108 total sales posted in 2022. Sales prices this quarter ranged from the entry level of $1.7M to the high of $9.4M with the majority of activity occurring in the MPCC area.

With the recent contraction in deal flow – particularly at the top of the market - total dollar volume in the 4th quarter dipped to $57M in investments, which is down -35% from 3Q23 and -58% from 4Q22. Total dollar volume for the year closed at $352.5M compared to last year which posted a remarkable $572.80M. In historical perspectives, these 2023 totals are still strong annual postings for total dollar volume.Throughout 4Q23, the overall median sales prices rose to $2.925M – up 10% QoQ and YoY respectively – in large part to steady demand outpacing thin supplies. The Central Pebble area posted more sales in the lower price points causing a mild regional drop in median prices while the MPCC and the Upper Forest areas both climbed in values from the previous quarter.

Demand remains strong for select properties that host a combination of the most lifestyle needs for buyers (location/layout/views/setting) while homes in less desirable locations or in need of remodeling are staying on market longer. This trend was illuminated in the rise in deals over recent quarters that sold over ask price for those most desirable properties.

By the numbers - the highest sales price this quarter was $9.4M, which came from a newly built Modern-style home on the golf front of Poppy Hills. This was a quiet quarter for the top of the market ($10M+) which saw 3 sales above $10M in 3Q23 and 4 sales in 4Q22.

Entering the new year, there are 28 active listings on the market – ranging from a ranch-style home listed at $1.5M in the Upper Forest to a custom-built home with ocean views in the Macomber Estates area that is offered at $39M. Interestingly, current active listings matched last quarter’s average levels while dipping below 4Q22’s (31 actives).

Pebble Beach is poised for a rebound in deal flow in 2024 as mortgage rates are forecasted to drop several bases points – inviting sellers with low rates to re-enter the marketplace in search of better opportunities. Also, a resilient economy bolstered by strong growth in AI (in nearby Silicon Valley) should propel the Pebble Beach market out of its winter slumber.

Nic Canning pebble specialist 831.241.4458

Featured Property Photo: 3249 17 Mile Drive, Pebble Beach 324917Mile.com

4Q2023 Update

PEBBLE BEACH

4Q2023 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

16

Total Sales

$57M Total Dollar Volume

Get Smart

4Q2023 Snapshot

16 Units Sold in 4Q2023

70 Average Days on Market

1 0 3 4 5 1 2 0 0

35% decrease from 3Q23

58% decrease from 4Q22

24% decrease from 3Q23

33% decrease from 4Q22

12% increase from 3Q23

23% increase from 4Q22

4Q2023 Top Pebble Beach Sales 30 Poppy Lane 3348 Ondulado Road 1472 Padre Lane 1032 San Carlos Road 1407 Cantera Court 1209 Benbow Place 1168 Rampart Road 1156 Arroyo Drive 2930 Lupin Lane 1048 Paradise Park Road

$9,400,000 $5,400,000 $5,000,000 $4,605,000 $3,600,000 $3,450,000 $3,435,000 $3,010,000 $2,925,000 $2,850,000

4155 Sunset Lane 1053 The Old Drive 2832 Paradise Park Road 4063 Mora Lane 4056 Sunset Lane 4086 Los Altos Drive

*Indicates a Canning Properties Group Sale

$2,825,000 $2,575,000 $2,500,000 $2,000,000 $1,725,000 $1,700,000

PEBBLE BEACH

# of Sales

Quarterly Sales by Region

4Q2023 Update

Central Pebble Beach

5%

Average % off list price 4Q2023 Sales

MPCC

Upper Forest

s n o i t a t o g l ne u f t h g u o and With th s r e y u b h for d from bot e s i o p s ei l b b e P , s seller 24. ’ n i d n u o a reb

Pricing Trends

Carmel

Market Overview As buyers were buoyed by softening interest rates, they have returned to the market which elevated the sales in 3Q23. However, strong buyer interest has confronted the harsh reality of an unrelenting tight inventory, thus limiting their options and narrowing their ability to truly learn about the many nuances in the Carmel market. Sales in Carmel continued to tighten as it closed out 2023 with just 33 deals closed, down 34% from last quarter but climbing 22% from the low we saw in 4Q22.

The market is rebounding fairly evenly, with strong sales across the price spectrum and 4 north of $8M. The $126M closed in 4Q23 was down a bit from last quarter but still up over last year. The days when you could buy anything in downtown Carmel for under $1M are essentially gone; it has been over 2 years since one has become available and both of those were teardowns (essentially dirt value). The lack of inventory will ensure that this holds firm in the foreseeable future.

The Golden Rectangle and Carmel Point continue to be the most coveted locations and have seen extraordinarily tight sales over the past 2 years, with just 11 sales this quarter in those regions combined; we saw 20 sales in those areas in 2Q21 alone. Northeast Carmel finally slowed down, after having several years of very strong sales, with just 4 deals closing in 4Q23, down from 15 last quarter. Southeast Carmel continued to hold steady with 7 deals closing this quarter (down a bit from the 10 last quarter), and Hatton and Northwest Carmel stayed steady with 3 and 8 deals respectively, matching last quarter.

Historically, we’ve seen a nice uptick in new inventory around the AT&T golf tournament and anticipate to see a few more coming to the market over the next few weeks. However, buyers should brace themselves for a longer wait if they’re particularly attached to a location and price.

Jessica Canning carmel specialist 831.238.5535

Featured Property Photo: Scenic 6 SW of Ocean Ave, Carmel-by-the-Sea Scenic6SWofOcean.com

4Q2023 Update

CARMEL

4Q2023 Sales by Price Range 4 1 5 4 4 3 7 5 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

33

Total Sales

$125.8M Total Dollar Volume

Get Smart

4Q2023 Snapshot

33 Units Sold in 4Q2023

61 Average Days on Market

36% decrease from 3Q23

15% increase from 4Q22

34% decrease from 3Q23

22% increase from 4Q22

7% increase from 3Q23

46% increase from 4Q22

4Q2023 Top Carmel Sales NEC of Scenic & 10th Monte Verde 2 NE of 6th Casanova 7 NW of Ocean San Antonio 3 SW Of 12th 25498 Hatton Road NWC Casanova & 8th Mission 3SW Of 7th Street 2480 Bay View Avenue 2579 14th Avenue 12th 2 NE Of Monte Verde

$12,975,000 $11,000,000 $10,700,000 $10,500,000 $7,185,000 $5,300,000 $4,750,000 $4,700,000 $4,300,000 $4,150,000

Mission 5 SE of 12th Lincoln 3 SE of 11th SEC Dolores & 8th Dolores 2 SW of 11th Dolores 3NE of 10th 2931 Alta Avenue 25981 Ridgewood Road San Carlos 2 SW of 11th Forest 3SW of 7th San Carlos 3 SW of Vista Avenue

*Indicates a Canning Properties Group Sale

$3,665,000 $3,662,900 $3,200,000 $3,155,000 $2,900,000 $2,550,000 $2,525,000 $2,500,000 $2,300,000 $2,200,000

CARMEL

# of Sales

Quarterly Sales by Region

4Q2023 Update

Carmel Point

Golden Rectangle

Hatton Fields

Northeast Carmel

Northwest Carmel

Southeast Carmel

2%

Average % off list price 4Q2023 Sales

et k r a m l e arm C e h t h g een s s n i Althou a g ice r p , w o l s ars l e y f o is stil e l p cou t s a p e h . m r over t i f g n i d are hol

Pricing Trends

Carmel Highlands Market Overview

As we dive into the final quarter of 2023, this provides us wonderful opportunity to reflect on our real estate landscape in Carmel Highlands and Carmel Meadows.

Noteworthy are the 4 homes sold in Carmel Highlands and Meadows compared to the 9 homes sales from the preceding quarter. However, when compared with 4Q2022, the region witnessed an impressive 100% surge, underscoring the enduring strength of the market and its appeal to prospective buyers. The four properties that changed hands this quarter had an average sales price of $3.35 million. In Carmel Highlands, it’s important to call out 226 Peter Pan Road, which sold off market for $3.950M. This property had the highest sales price this quarter. Historically, it’s evident that when securing a property off market, Buyers will be paying a premium. In the realm of Carmel Meadows, we took pride in representing the sellers of 2845 Ribera Road, a property that successfully sold for $2.8 million. It's rare to see homes become available in this enclave and when a special property becomes available, demand is strong.

Within this slice of paradise, there are currently 5 active listings and 1 contingent property. Should you be contemplating a discussion on the current value of your property or entertaining the idea of selling, please don't hesitate to reach out. We would be delighted to schedule a meeting at your earliest convenience.

Additionally, be on the lookout for exciting new listings that we are eagerly anticipating introducing to the market early next year!

Paige Colijn carmel & carmel valley ranch specialist 831.710.1655

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

4Q2023 Update

CARMEL HIGHLANDS

4Q2023 Sales by Price Range 0 0 0 3 1 0 0 0 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

4

Total Sales

$13.45M Total Dollar Volume

Get Smart

4Q2023 Snapshot

4 Units Sold in 4Q2023

78 Average Days on Market

58% decrease from 3Q23

23% increase from 4Q22

56% decrease from 3Q23

100% increase from 4Q22

4% increase from 3Q23

38% decrease from 4Q22

4Q2023 Top Carmel Highlands Sales 226 Peter Pan Road 142 Carmel Riviera Drive 206 Upper Walden Road 2845 Ribera Road

$3,950,000 $3,600,000 $3,105,000 $2,800,000

*Indicates a Canning Properties Group Sale

CARMEL HIGHLANDS

# of Sales

Quarterly Sales by Region

4Q2023 Update

Carmel Highlands

4% Average % off list price 4Q2023 Sales

Carmel Meadows

et has k r a m e h of t ge The top r u s e h t t since e i u q n e be ’22. n i w a s we

Pricing Trends

Quail Lodge/Meadows Market Overview

Quail Lodge continues to dominate the valley with a steady flow of listings and strong sales prices. The unique combination of single level, smaller size, walkability and consistent curb appeal have drawn strong demand and elevated prices. There were 4 sales in 4Q23 bringing in just over $13M. The top sale goes to 7028 Valley Knoll, which closed for $4.1M, then our immaculate listing at 7028 Valley Greens which closed for $3.225M, then 8023 River Place at $3M and 8022 River Place at $2.7M. However, unlike during the boom in 2020-2022, buyers are getting a little wiggle room on prices with the sales price coming in about 6% off list price this quarter.

The biggest and best news in Quail Lodge is that our roads are officially paved and look gorgeous! The HOA has done amazing work to collaborate with the county to make this happen and it has already elevated the look of the area, which will help in resale prices and continued demand. The HOA is also looking to make Quail Lodge a FireWise community, which can have a positive impact on insurability and rates, so if you’re interested in working on this initiative, please reach out and we’ll help coordinate it.

Finally, Quail recently brought on a new chef and is revamping the menu at the Covey, so we anticipate demand to continue to build for this area.

Quail Meadows didn’t have any homes sell this quarter but we are bringing on a few over the next few months, so follow our Discreet Listings page on our website for updates.

Jessica Canning quail specialist 831.238.5535

Featured Property Photo: 5462 Quail Way, Quail Meadows 5462QuailWay.com

4Q2023 Update

QUAIL LODGE / MEADOWS

4Q2023 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

$13.025M Total Dollar Volume

Get Smart

4Q2023 Snapshot

4 Units Sold in 4Q2023

47 Average Days on Market

96% increase from 3Q23

72% increase from 4Q22

33% increase from 3Q23

100% increase from 4Q22

27% decrease from 3Q23

2% decrease from 4Q22

4Q2023 Quail Lodge & Meadows Sales 7028 Valley Knoll Road 7028 Valley Greens Circle 8023 River Place 8022 River Place

$4,100,000 $3,225,000 $3,000,000 $2,700,000

*Indicates a Canning Properties Group Sale

0 0 1 2 1 0 0 0 0

QUAIL LODGE / MEADOWS

# of Sales

Quarterly Sales by Region

4Q2023 Update

Quail Lodge

6%

Average % off list price 4Q2023 Sales

Quail Meadows

ing d l i u b s i f o Quail t u o g n comi m u t n e. e g r u mom s 2 202 0 2 0 2 the

Pricing Trends

Santa Lucia Preserve Market Overview

The autumn season in the Preserve was as beautiful and vibrant as any with warm temperatures making outdoor pursuits very pleasureful including the Men’s Boar Hunt Golf Invitational, the Stocker Cup, the NCAA Cal Poly Invitational, the Mushroom Hunt and K9 hikes, camp outs at Moore’s Lake, equestrian activities, gardening, wine pairing dinners and pickleball socials.

Real estate sales slowed in the 4th quarter, finishing with just 1 homesite sale at $500K, and no home sales. At the end of the year, there were 2 finished homes and 37 homesites listed for sale which is on par with the last quarter of 2023 and last year this time. The median sales price for vacant land was $500K, which is a decrease of 9% from the 3rd quarter, and down 85% from this time last year. Homesites sales were slower this year with continued heightened building costs and times, however we do see things improving - a new home was completed in just under 3 years from purchase of land to moving in, so it’s a great time to buy a homesite.

We have great relationships with architects and builders that can deliver a very high-quality finished product for under $1000/sq.ft., so don’t hesitate to inquire about building your dream home. Fire insurance concerns have also been a headwind, but we do have insurance providers ready to write policies and as a Firewise Community with fuel management plans, a fire department on property, and fire safety infrastructure in place, The Preserve has a positive proven track record relating to fire safety.

As we review sales activity in all of 2023, one thing important to note is that it was a record-setting year achieving the highest watermark home sale of all time at $12.5M. Limited finished home inventory clearly weighed on sales velocity. We currently have two 3 bedroom, 3.5 bath homes on the market at 3 Holding Field Run located closer to the front gatehouse, a brand new build at 24 Arroyo Sequoia near the Golf Club.

We expect to see sales activity picking up in 2024 since homesite prices have not risen over the years with the rest of the market, we have some great finished homes coming to the market and the challenging market macroenvironment headwinds are easing.

Brian Keck preserve specialist 831.238.8730

Featured Propety Photo: 3 Holding Field, Carmel 3HoldingField.com

4Q2023 Update

SANTA LUCIA PRESERVE

4Q2023 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

$500K Total Dollar Volume

Get Smart

1 Units Sold in 4Q2023

4Q2023 Snapshot

0 Average Days on Market

96% decrease from 3Q23

98% decrease from 4Q22

67% decrease from 3Q23

75% decrease from 4Q22

100% decrease from 3Q23

100% decrease from 4Q22

4Q2023 Top Preserve Sales 3 Rumsen Trace

$500,000

*Indicates a Canning Properties Group Sale

0 0 0 0 0 0 0 0 1

SANTA LUCIA PRESERVE

# of Sales

Quarterly Sales by Region

4Q2023 Update

Preserve Lots

0%

Average % off of list price 4Q2023 Sales

Preserve Homes

s e l a s k a pe e h t h t i , we W M 2 1 $ g in t s e r c to e s e l pric a s d an l e t a p s i e c c i r p anti t i ex s a e s a d l i u b incre h t i w r e t t e b align costs.

Pricing Trends

Pacific Grove Market Overview

Pacific Grove had a very strong finish to 2023 with 36 sales closing for $62.8M – both metrics are up when compared to last quarter and 4Q22.

Historically speaking, the final quarter of the year (spilling into the first quarter) is the slowest period for transactions, with activity typically picking up as the spring sun reemerges. However, despite thin inventory levels throughout all of 2023, the Pacific Grove market showed consistent growth, with the fourth quarter producing the highest sales volume of the year. As the ball dropped on 2023, there were 26 active listings in Pacific Grove – right on par with the previous quarter (3Q23) – but a surprising YoY increase from this time last year when there were only 17 homes on the market. Finishing the year strong, Pacific Grove’s market appears poised for continued growth.

Pacific Grove is perfectly positioned to benefit from a market rebound with strong demand for engaging communities, prices below $2M and easy access for those who are commuting back to the office in the Bay Area. As such, sales are well balanced across the spectrum, even topping $5.95M with the sale on 398 Calle de los Amigos closing in the 4th quarter.

The top of the market is rising in PG as this is the 3rd sale above $4M in 2023 – almost matching the peak of 2021 for dealflow in this bracket.

Competitiveness is also driving prices up, resulting in a 15% increase in median sales prices over this quarter last year.

Amidst the uncertainties of the broader economic landscape and fluctuations in interest rates, Pacific Grove’s real estate market has defied expectations in 2023, charting a course of steady growth. Throughout all of 2023, demand for specific locations and key properties remained high, as many of the homes that sold in under 14 days of being listed went for over asking, while overpriced homes in less desirable locations or that needed work tended to take longer to sell, while also incurring price drops along the way. Despite all the outside rumblings, there is an encouraging sign of stability in Pacific Grove as we segue into what’s sure to be an intriguing 2024.

Arleen Hardenstein pacific grove specialist 831.915.8989

Visit DiscreetProperties.com to view all upcoming and off-market listings.

4Q2023 Update

PACIFIC GROVE

4Q2023 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

36

Total Sales

$62.8M Total Dollar Volume

Get Smart

4Q2023 Snapshot

36 Units Sold in 4Q2023

31 Average Days on Market

0 0 1 2 3 3 7 14 6

18% increase from 3Q23

37% increase from 4Q22

20% increase from 3Q23

16% increase from 4Q22

39% increase from 3Q23

14% decrease from 4Q22

4Q2023 Top Pacific Grove Sales 398 Calle De Los Amigos 440 Crocker Avenue 520 Lighthouse Avenue #205 1042 Jewell Avenue 1011 Balboa Avenue 402 4th Street 229 Asilomar Blvd 1054 Egan Avenue 925 Balboa Avenue 110 Grand Avenue 308 Bishop Avenue 491 Grove Acre Avenue

$5,950,000 $3,905,000 $3,194,000 $2,950,000 $2,850,000 $2,550,000 $2,225,000 $2,115,000 $2,000,000 $1,932,000 $1,925,000 $1,900,000

1130 Ripple Avenue 204 Ridge Road 236 Spruce Avenue 1071 Morse Drive 1116 Lincoln Avenue 144 17th Street 315 Junipero Avenue 509 Alder Street 1235/1237 FunstonAvenue 324 Eardley Avenue 2853 Ransford Avenue 1324 Funston Avenue

*Indicates a Canning Properties Group Sale

$1,825,000 $1,690,000 $1,580,000 $1,500,000 $1,434,150 $1,425,000 $1,375,000 $1,348,000 $1,340,000 $1,250,000 $1,250,000 $1,242,500

PACIFIC GROVE

# of Sales

Quarterly Sales by Region

4Q2023 Update

Beach/Asilomar Downtown PG

Country Club/Forest Hill/Del Monte Park

Washington Park/Pine Candy Cane Lane

2%

Average % off list price 4Q2023 Sales

bove a r o t a to pay y d a e r n PG if i Be e s u o h for a e c i r p et. k t r a lis m e h to t it’s new

Pricing Trends

Monterey Market Overview

The Monterey market slowed a bit this quarter with 31 deals closing for a total of $36.5M. The tightening inventory was particularly prounounced in Monterey with active listings dropping to just 27 – from 40 last quarter, so buyers must adjust to a new reality of houses selling faster and less options to choose from. Additionally, the market is paying a premium for homes that are move-in ready but a lot of the inventory that’s coming to the market needs updating and repairs, which is contracting the market further.

Prices continue to lift in Monterey with sales below $1M only representing about a third of the market in 4Q23, down from a little over half in 4Q21 and 99% in 4Q13. For the first time ever, in 2022 and 2023, there were more sales above $1M than below it. Demand across all of Monterey’s neighborhoods has remained steady, with all areas benefitting from higher prices and dealflow this quarter. The combination of views and walkability has lifted the New Monterey area, which accounted for almost half of the deals this quarter, up from just a third of deals in 4Q21.

There was considerable worry over spiking interest rates and the potential impact on dealflow at the bottom of the market, but buyers appear to have absorbed the higher rates as dealflow and median sales prices haven’t changed over the past 2 years but have more than doubled over the past decade. 2023 was clearly a buyer’s market with a majority of deals getting multiple offers, particularly those that didn’t need extensive repairs. The potential for lower interest rates will have an interesting effect on this market as the lower rates will encourage more sellers to make the leap and move, while simultaneously opening the door for more buyers to afford the market.

Spiro Pettas monterey specialist 831. 214.3377

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

4Q2023 Update

MONTEREY

4Q2023 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

31

Total Sales

$36.52M Total Dollar Volume

Get Smart

4Q2023 Snapshot

31 Units Sold in 4Q2023

30 Average Days on Market

0 0 0 0 1 1 7 12 10

14% decrease from 3Q23

2% decrease from 4Q22

14% decrease from 3Q23

3% decrease from 4Q22

25% decrease from 3Q23

9% decrease from 4Q22

4Q2023 Top Monterey Sales 898 Colton Street 600 Martin Street 835 Johnson Street 5 Cielo Vista Drive 12 La Playa Street 840 Filmore Street 901 Irving Avenue 40 Cuesta Vista Drive 1 Stratford Place 811 Grove Street

$2,550,000 $2,100,000 $1,705,000 $1,600,000 $1,550,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,441,500

961 Monterey Circle 30 Crandall Road 56 Sierra Vista Drive 856 Lomita Street 759 Grace Street 752 Taylor Street 127 El Dorado Street 1321 Hoffman Avenue 1103 McClellan Avenue 952 Hellam Street

$1,295,000 $1,295,000 $1,254,000 $1,222,500 $1,215,000 $1,190,000 $1,100,000 $1,093,000 $1,050,000 $1,000,000

MONTEREY

# of Sales

Quarterly Sales by Region

4Q2023 Update

Alta Mesa/Peter's Gate

Golf Course/Flats

Monte Vista/Skyline

Old Town/New Monterey

1%

Average % off list price 4Q2023 Sales

d to be e e n s r e buy iftly as Serious w s t c a d to limb. c prepare o t e u ontin prices c

Pricing Trends

Carmel Valley Ranch Market Overview

Carmel Valley Ranch serves as the epitome of refined living and natural beauty. As we conclude 2023, the enduring charm of this community remains a testament to the seamless integration of tranquility, and an unparalleled quality of life. Currently, the market boasts 4 active listings, 2 contingent, and 1 pending, affirming its resilience and vitality.

Recapping the fourth quarter of 2023, a total of 3 sales occurred with an average sales price of $1.575 million. We’re honored to represent the buyers of a wonderful home up on the summit at 10485 Fairway, which was the highest price sale of the quarter, fetching $2.5 million. The other two sales were 9542 Maple Court and 9682 Sycamore, both were condos down along the golf course. However, there is pricing pressure taking place in the Ranch right now, with a few homes sitting much longer and needing to take a price adjustment before getting an offer. For example, Fairway was originally listed for $3.25M and closed for $2.5M after over 3 months on the market. However, the market is responding well to price adjustments, as all of the contingent and pending deals in escrow have had price reductions. The demand is there, but sellers must adapt to the changing market.

While we don’t anticipate dealflow returning to the same levels seen in 2020-2022, demand continues to be strong for well priced home in the Ranch and we anticipate that continuing throughout 2024. Should you wish to explore the value of your property or consider listing it for sale, please do not hesitate to reach out. We would be delighted to schedule a meeting at your earliest convenience.

Paige Colijn carmel & carmel valley ranch specialist 831.710.1655

Visit DiscreetProperties.com to view all upcoming and off-market listings.

4Q2023 Update

CARMEL VALLEY RANCH

4Q2023 Sales by Price Range 0 0 0 0 1 0 1 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

$5.5M Total Dollar Volume

Get Smart

4Q2023 Snapshot

3 Units Sold in 4Q2023

48 Average Days on Market

27% increase from 3Q23

300% increase from 4Q22

even with 3Q23

300% increase from 4Q22

45% increase from 3Q23

300% increase from 4Q22

4Q2023 Top Carmel Valley Ranch Sales 10495 Fairway Lane 9542 Maple Court 9682 Sycamore Court

$2,500,000 $1,575,000 $1,440,000

*Indicates a Canning Properties Group Sale

CARMEL VALLEY RANCH

# of Sales

Quarterly Sales

4Q2023 Update

Carmel Valley Ranch

3%

Average % off list price 4Q2023 Sales

t e e m o t l itica r c s i g n the Prici d n a d n ma be n buyer de a c e c i r es p l a s e d. t e a c i r p r ultim e y ov l l a i t i n i lower if

Pricing Trends

Tehama

Market Overview Sales of homes and land in Tehama have remained unchanged since last quarter. The only sale recorded in 2023 was for the resale of Lot 10 which we closed in April for $2.5M. 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. We closed one home in 2022, and two homes in 2021. We have two more finished home resales to bring to the market in the next month or two, and expect that will create some interest in the community.

We find interest and showing requests for vacant land has decreased since the third quarter of 2023, most likely due to the business of the holiday season. There are 10 lots currently listed for sale on MLS with prices ranging from $1.97M to $4M. Median list price is $2.75, with an average days on market (DOM) of 249 days.

Overall, the real estate market is still fairly robust here on the Monterey Peninsula as inventory in all areas remains low, especially for finished homes that are priced well and in move-in condition. Now that the holidays are behind us, we look forward to an active 1st quarter in 2024 with more people showing a renewed interest in the community as we head bring the finished homes to market.

Brian Keck tehama specialist 831.238.8730

Featured Property Photo: 12 Alta Madera, Carmel AltaMaderaTehama.com

4Q2023 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 in 2023

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

4Q2023 Update

Tehama Lots

$2.5M 2023 Sales Price for Tehama Lots

Tehama Homes

see o t e t i s r web u o o t sting i d L t Hea e e r Disc g n i m o c a. our up in Teham

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

As we welcome 2024, we are happy to report the last quarter of 2023 saw an increase in sales activity of both homes and land in Monterra.

Monterra recorded one home sale this year at a price point of $4,550,000, compared to three homes sales in 2022 that sold at an average of $914 per square foot. The home on Vista Monterra that was listed at $6,200,000 is in escrow and scheduled to close at the end of the month. This same home sold for $4,925,000 in 2022. There are currently three Monterra homes actively listed for sale – two new builds at $6,895,000 and $5,175,000, and a resale for $5,495,000 with an average list price of $1,335 per square foot, and an average of 62 days on market (DOM). There is one more investorowned home on Via Malpaso that should be coming to the market in the next 30 days or so. We will be interested to see what it is listed for and anticipate it will be priced below the current listings.

Interest in vacant land has also increased in the fourth quarter of 2023 and there are currently three lots in escrow. There were four vacant land sales in 2023 totaling $4,900,000 (3 on market and 1 off market sale), with an average days on market for the sales of 150 days, and the median sale price came in at $1,350,000. There are currently 10 lots listed on MLS (Canning Properties Group has 6 of them) and we have had some great showings.

List prices currently range from $619,000 to $1,895,000, with an average DOM of 386 days.

Now that the holidays are behind us, we look forward to an active 1st quarter with more buyers showing a renewed interest in the community.

Brian Keck monterra specialist 831.238.8730

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

4Q2023 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 in 2023

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

4Q2023 Update

Lots

$4.9M Total Invested in 2023

Homes

or f d n a m e sed d a e r c n ate i p i s ’ c i e t r n e a h e T so w s e m o h a vity in i t c a Monterr n i ptick u g n o r t as 2024.

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

Welcome to the Team.

We’re very excited to announce the addition of Arleen Hardenstein and Alecia Hull to our team.

Arleen and Alecia are perennial leaders, with deep roots in Pacific Grove, Monterey and Tehama. Their enthusiasm, passion and expertise are inspiring and will help bring even more value to our clients and team. For more fun facts about Arleen and Alecia, head to CanningProperties.com.

Arleen Hardenstein

Alecia Hull

Arleen@canningproperties.com 831.915.8989

Alecia@canningproperties.com 831.238.8688

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Canning Properties Group | 831.238.9718 | CanningProperties.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, Paige Colijn DRE #02168140, Anita Jones DRE #01926760, Spiro Pettas DRE #02066568, Arleen Hardenstein DRE #01710953, & Alecia Hull DRE #02027849.

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, Arleen Hardenstein DRE #01710953, & Alecia Hull DRE #02027849.