Q3 2023 Market Report | Carmel Realty Company | Including Monterey & Pacific Grove

Q3 2023 Market Report Carmel-by-the-Sea & Carmel Point ■ Greater Carmel ■ Carmel Valley ■ Pebble Beach Carmel Highlands Big Sur & South Coast ■ Pacific Grove ■ Monterey & Del Rey Oaks

Our Featured Listings Ideally Situated Pebble Beach Estate

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Market Reports Q3 2023

Q3 2023 Market Report

Ta b l e o f C o n t e n t s

Get in-depth market updates for key areas across the Monterey Peninsula.

02

Market Overview

03

Carmel-by-the-Sea & Carmel Point

05

Greater Carmel

07

Carmel Valley

09

Pebble Beach

11

Carmel Highlands, Big Sur & South Coast

13

Pacific Grove

15

Monterey & Del Rey Oaks

Carmel Realty Company’s Q3 2023 Significant Sales The Iconic Butterfly House in Carmel

Views of Point Lobos in Pebble Beach

26320 Scenic Road ■ SP: $29,000,000 ■ Rep. Seller

3908 Ronda Road ■ SP: $13,200,000 ■ Rep. Buyer & Seller

Exceptional Ocean Views in Pebble Beach

Classic & Charming Carmel Cottage

3164 Palmero Way ■ SP: $11,000,000 ■ Rep. Seller

26138 Camino Real ■ SP: $5,450,000 ■ Rep. Buyer & Seller

Steps to the Lodge in Pebble Beach

Remodeled Coastal Home in Carmel

3199 Cortez Road ■ SP: $5,300,000 ■ Rep. Seller

2765 Ribera Road ■ SP: $4,200,000 ■ Rep. Buyer & Seller

01 Market Reports Q3 2023

Q3 2023 Market Overview The Monterey Peninsula had a busy summer beginning with the first ever US Women’s Open in July and continuing through a very successful Concours d’Elegance in August.

Over the last three months, the streets have been bustling, shops busy and restaurants flourishing. Demand for real estate remained high and while inventory has improved a bit, the number of available homes for sale on the Peninsula is still well below pre-Covid levels.

Real estate sales, sales volume and pricing performance varied meaningfully by area this quarter. Overall, the seven markets we track on the Monterey Peninsula experienced an increase in total dollar volume over Q2 of 2023 and saw the second highest average sales price we have experienced in years. This performance was driven by an exceptional quarter in Carmel-by-the-Sea, where the number of sales increased over 50% above the previous quarter and the same quarter last year. Moreover, there were a few significant sales including the record sale of The Butterfly House, listed and sold by Carmel Realty Company, which drove the average sale price in Carmel to $4.2M. Other markets did not fare as well. Pebble Beach for example, saw only 16 sales for a total of $58.5M in volume this quarter, both of which were the lowest in Pebble Beach over the last 12 quarters. This slowdown was driven by fewer high-end sales, with only three homes sold in the quarter for more than $5M. While the Pebble Beach market was difficult this quarter, Carmel Realty Company continued to perform extremely well in the market accounting for over 50% of sales volume of all the listed homes sold. Currently, 16 of the 29 active listings in Pebble Beach are listed for over $5M. The market on the Peninsula is normalizing into a healthy balance and performing better than most markets across the country. After an extraordinary spike in home values coming out of Covid, our market experienced a much smaller reduction in Real Estate values than most of the country. Across the entire market, we estimate that the reduction in values coming out of Covid was somewhere in the 9% range. Now, with limited inventory and continued demand, it appears that in several of our markets the reduction in value has already evaporated. Average price for homes in many of our neighborhoods is already back to post-Covid levels that peaked in late 2021, and in some markets like Carmel, it is even higher.

There are several macro-economic and geo-political issues that will continue to impact the real estate market over the next several quarters. However, given the strong desire to live in our amazing community, we expect our market to continue to outperform others and believe that sales, sales volume, and price to remain healthy for the rest of this year and into 2024.

Market Update Market Update

Carmel-by-the-Sea Carmel-by-the-Sea & Carmel Point & Carmel Point

Carmel-by-the-Sea had its best quarter in terms of number andEstotal sales volume sinceet2021.

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Total Ut quiae simincit aut omniantiis demdouble rerehenem quat il sales volume ($185M) was almost thatipit of last ipsum re ni optatur, con necabore magnatur, niae. Omnim quarter and Q3 of 2022. Ten sales over $5M bumped debit et occum quidel ius ma diorepeliat vendio enest, con the sales and total volume up this quam, quarter coreaverage voloratiam quiprice officiis dolupiet lignate nisquas aft er we saw just six such sales over theminus, first six months corendae magniet officimos mi, que occat ommo of theomnitem year. Carmel Realty Company proud to have cone volorest eictian destem. Atisoffi cie nditiore quassita idelitthe quiam, dolorestio volorrovide represented sellercuptatati of the highest priced sale onsitiur as as expeles ratiasperis eaquo record on Carmel Point, The Butterfly House.

Average Selling Price

$4,203,932 21.2%

versus Q2 2023

27%

versus Q3 2022

Days on Market

58

56.8% versus Q2 2023

70.6%

versus Q3 2022

Sales Volume

$184,973,000 97.5% versus Q2 2023

99.5%

versus Q3 2022

Units Sold

44

63%

versus Q2 2023

03 Market Reports Q3 2023

57.1%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

homes

homes homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2 2022

Q3 2023

< $1m

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

in millions

Q4

homes

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

homes

Q1

Q2 2022

Q3

Q4

2023

$5m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

Carmel-by-the-Sea’s one-square mile village is as unique in charm as it is in fun facts. No high heels law, no street addresses, Clint Eastwood was once mayor, and Doris Day helped make Carmel dog heaven on Earth.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Greater Carmel

The areas outside of Carmel-by-the-Sea & Carmel Point Greater Carmel experienced its fifth straight quarter with low sales numbers, tallying just 13 sales, below typical levels in the low twenties. Six of the 13 sales topped $2M, bringing the average sales price ($2.1M) up almost 25% versus last quarter. With just $71.8M in total sales volume thus far in 2023, the Greater Carmel area is on track for its lowest full-year total sales volume ($95.8M) since 2012.

Average Selling Price

$2,111,087 24.7%

versus Q2 2023

11.6%

versus Q3 2022

Days on Market

55

77.4% versus Q2 2023

161.9%

versus Q3 2022

Sales Volume

$27,444,125 24.7% versus Q2 2023

3.3%

versus Q3 2022

Units Sold

13

no change versus Q2 2023

05 Market Reports Q3 2023

13.3%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

home

homes

homes

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $1m

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$5m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

Point Lobos State Reserve near Carmel hosts a geologic wonder: rocks of four “ages” can be found there, including the unusual Carmel formation dating back to the Paleocene age (over 60 million years old).

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Carmel Valley Including The Santa Lucia Preserve

After a strong Q2, Carmel Valley saw sales drop from 53 to 43 (typical levels range in the low to mid 50s).

Average sales price was strong for the quarter at $1.85M, up 3.6% versus last quarter, and down just 5.5% from the record high Q3 of 2022. Between Carmel Realty Company and sister brokerage Monterey Coast Realty, our company double ended the top two sales in the area for the quarter: 1 Vuelo De Las Palomas and 128 Rancho Road.

Average Selling Price

$1,850,367 3.6%

versus Q2 2023

5.5%

versus Q3 2022

Days on Market

53

8.2%

versus Q2 2023

39.5%

versus Q3 2022

Sales Volume

$79,565,788 15.9%

versus Q2 2023

13.6%

versus Q3 2022

Units Sold

43

18.9%

versus Q2 2023

07 Market Reports Q3 2023

8.5%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

home

homes

homes

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $1m

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$5m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

Monterey County is the largest grower of Chardonnay in the United States and the largest grower of Pinot Noir in California. Monterey County has 349 vineyards, 82 bonded wineries and 65 tasting rooms.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Pebble Beach High-priced sales remained difficult to come by in Pebble Beach during Q3 2023. Just two sales over $10M and one sale between $5-$10M occurred in Q3. Carmel Realty Company represented both the seller and buyer of the top sale during the quarter and also represented the seller for the second $10M+ sale and the singular $5M+ sale. Back-to-back quarters of just 16 and 17 home sales resulting in $58.5M and $63.8M respectively in total sales volume, were each the lowest in the area over the last three years. 29 homes remain on the market heading into Q4, including 16 homes over $5M, six of which are over $10M.

Average Selling Price

$3,658,594 2.5%

versus Q2 2023

6.7%

versus Q3 2022

Days on Market

58

20.8% versus Q2 2023

123.1%

versus Q3 2022

Sales Volume

$58,537,500 8.2%

versus Q2 2023

44.7%

versus Q3 2022

Units Sold

16

5.9%

versus Q2 2023

09 Market Reports Q3 2023

40.7%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

home

homes

homes

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $1m

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$5m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

The Lone Cypress tree, located on 17-Mile Drive in Pebble Beach, is a scenic landmark for the Peninsula and is nearly 300 years old. Monterey Cypress trees are a species native only to this region and can live up to 4,000 years.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Carmel Highlands, Big Sur & South Coast Six total sales during Q3 was the most of any quarter this year after five homes sold the previous two quarters.

The average sales price in the area came in at $3.8M for the quarter. There were no $10M+ homes sold, but two which sold over $5M. Ten of the 20 remaining active listings in the area are above $5M in list price, six of which are over $10M.

Average Selling Price

$3,821,833 40.1%

versus Q2 2023

0.8%

versus Q3 2022

Days on Market

56

28.2% versus Q2 2023

31.7%

versus Q3 2022

Sales Volume

$22,931,000 28.1%

versus Q2 2023

39.5%

versus Q3 2022

Units Sold

6

20%

versus Q2 2023

11 Market Reports Q3 2023

40%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

home

home

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $1m

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$5m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

The Bixby Bridge in Big Sur was built by prisoners eager to earn “good time” off their prison sentences. It is one of the world’s highest single-span bridges at 714 feet long by 260 feet high.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Pacific Grove Quarter 3 of 2023 in Pacific Grove was consistent with its previous three quarters dating back to Q4 2022 in terms of sales with 30 for the quarter (versus 32, 30, 30).

Average sales price, hit a record high, nearing $1.78M. This was up 15% versus both last quarter and the same quarter of last year. Average days on the market finished the quarter at just 22 days, showing strong buyer demand when quality homes come on the market in Pacific Grove. Unfortunately for buyers, supply continues to be low with just 18 active listings on the market moving into Q4.

Average Selling Price

$1,779,178 15%

versus Q2 2023

15%

versus Q3 2022

Days on Market

22

26.7% versus Q2 2023

4.3%

versus Q3 2022

Sales Volume

$53,375,342 7.8%

versus Q2 2023

28.1%

versus Q3 2022

Units Sold

30

6.3%

versus Q2 2023

13 Market Reports Q3 2023

37.5%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

homes

homes

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $800k $800k-$1.2m $1.2m–$2m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$2m–$3m

$3m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

The Monarch Butterfly Sanctuary in Pacific Grove is one of the largest monarch overwintering sites in America. The monarchs arrive in October after a 2,000-mile migration and overwinter until February.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

Market Update

Monterey & Del Rey Oaks Monterey experienced 52 total sales during Q3, down 21% from last quarter and below the typical average over 75. The average sales price ($1.26M) was up 10.9% versus last quarter and back to a consistent price with what we have seen over the last two years. Just one sale over $3M occurred in the quarter, with Pasadera and Monterra contributing just one home sale over $2M in the quarter.

The median sales price returned to $1.18M in Q3, after falling below $1M in Q2. A slightly higher than average 48 active listings remain on the market at the end of the quarter, showing promise for an uptick in sales during the quarter ahead.

Average Selling Price

$1,258,829 10.9%

versus Q2 2023

2.3%

versus Q3 2022

Days on Market

35

40%

versus Q2 2023

20.7%

versus Q3 2022

Sales Volume

$65,459,130 12.6%

versus Q2 2023

7.6%

versus Q3 2022

Units Sold

52

21.2%

versus Q2 2023

15 Market Reports Q3 2023

5.5%

versus Q3 2022

Q3 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

home

homes

homes

homes

homes

Q3 2022

Q4 2022

Q1 2023

Average

Q2

Q3 2023

< $800k $800k-$1.2m $1.2m–$2m

Number of Closed Sales

By Quarter

in millions

2022

Q3 2023

Median

Total Sales Volume

By Quarter

Q1

Q2 2023

Q4

Q1

Q2 2022

Q3

Q4

2023

$2m–$3m

$3m+

Median Sales Price in millions

Q1

Q2 2022

Q3

Q4

2023

Did You Know?

The Monterey Bay National Marine Sanctuary covers 5,312 square miles. This is one and a half times the size of the largest national park in the continental U.S. At its center is a submarine canyon twice as deep as the Grand Canyon.

“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020

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