2023 Annual Market Report | Carmel Realty Company

2023 Annual Market Report Carmel-by-the-Sea & Carmel Point ■ Greater Carmel ■ Carmel Valley Pebble Beach ■ Carmel Highlands Big Sur & South Coast

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Ocean Views in Carmel Woods

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2023 Annual Market Report

2023 Annual 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

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

Views of Point Lobos in Pebble Beach

26320 Scenic Road ■ LP: $40,000,000 ■ Rep. Seller

3908 Ronda Road ■ LP: $14,800,000 ■ Rep. Buyer & Seller

Stunning One-of-a-Kind 1926 Carmel Estate

Exceptional Ocean Views in Pebble Beach

Monte Verde 2 NE of 6th Ave. ■ LP: $13,750,000 ■ Rep. Buyer & Seller

3164 Palmero Way ■ LP: $11,995,000 ■ Rep. Seller

Stately, Mediterranean Masterpiece

Stunning, Panoramic Views in Pebble Beach

3225 17 Mile Drive ■ LP: $11,450,000 ■ Rep. Seller

3199 Cortez Road ■ LP: $5,450,000 ■ Rep. Seller

01 2023 Annual Market Report

2023 Annual Market Overview The Monterey Peninsula was bustling this holiday season. Town was busy, shops and restaurants were full, and the outdoor lifestyle was in full swing for both the Thanksgiving and Christmas holiday weeks. The rest of the quarter was a bit quieter, as was the real estate market. Across the entire Peninsula, Q4 was down just slightly from the same quarter last year. For the entire year, 2023 experienced a meaningful reduction in the number of homes sold and in total dollar volume compared to 2022.

The number of sales for the entire year was down 21% and the total dollar volume was down 24.5% in 2023. The markets we track across the Peninsula experienced a lot of volatility, both quarter to quarter within the same market, as well as variance between each market here on the Peninsula. For example, when comparing 2023 versus 2022 in Carmel-by-the-Sea, the number of sales was almost equal during the two years and total dollar volume was up 8% in 2023. Conversely, during the same timeframe in 2023, the number of sales in Pebble Beach was off 20% and total dollar volume was down nearly 50%. Overall, while volume was down in 2023, it was comparable to the pre-COVID-19 market levels of 2019, which were undeniably strong.

The Peninsula experienced pressure on both the entry level and luxury ends of the market.

The entry level market was slower largely because of interest rate pressure. The higher end of the market was significantly slower in 2023 due to macro-economic uncertainty, geopolitical concerns, and other distractions that kept affluent buyers on the sideline for much of the year. The $5M+ home sales market was down 46% in transactions during 2023 versus 2022.

This represented a decrease in total sales volume across the Peninsula of nearly $800M. The good news is demand in our market remains high. While new buyer activity was low in Q4 and into the holidays, it is picking up already in mid-January. We expect that by spring the number of sales will rebound as many of these intended buyers re-enter the market.

The rapid shifts in our market overall and the significant variances across the different areas we track, suggest that it is more important than ever to have experienced, local, expert representation when buying or selling a home. Expert local insight can make or break a deal and can add significant value when demand, product and pricing is changing rapidly. Please reach out to one of our full-time professional agents should you and any of your friends or family be considering a real estate transaction here on the Monterey Peninsula.

We hope you enjoy the following detailed analytic view of our market.

We wish you and your family a happy and healthy New Year.

2023 Annual Statistics Market Update Market Update

Carmel-by-the-Sea Carmel-by-the-Sea & Carmel Point & Carmel Point Carmel-by-the-Sea had its second best quarter of the year in Q4neinendem. termsEs ofellictor total sales average sale Usanditia sitat (28), andendam et quae price ($4.0M), and total salesmustenis volume rerat ($112.5M). e omnimendamus il ium sapieni pera et Th utes corerem nimus et, testrum faccusandus. number of sales in the area for the quarter dipped from the verydoloris strongsus Q3,natem lowering 44 to 28 sales.

Tate nonsequi debisfrom mos earcipsapid quia volumsales que sitopped acestem unt quos volor mo ma veliquamthe haFour $10M in Q4 of 2023, including rum re ne laut accus alic tentis eosended a simpos apiet eumRealty fuga.

Happy Landing Estate, double

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Average Selling Price

$3,842,104 % 9.2 versus 2022

Days on Market

50

% 85.2 versus 2022

Sales Volume

$445,684,057 % 8.3 versus 2022

Units Sold

116

% 0.9 versus 2022

03 2023 Annual Market Report

Q4 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

homes

homes

homes homes

homes

Q4 2022

Q1 2023

Q2 2023

Average

in millions

Q2 2022

Q3 2023

Q4 2023 < $1m

Median

Total Sales Volume

By Quarter

Q1

Q3 2023

Q4

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

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

2023 Annual Statistics Market Update

Greater Carmel

The areas outside of Carmel-by-the-Sea & Carmel Point The Greater Carmel area finished off a difficult 2023 with another down quarter. Just 11 sales in the area over the last three months of the year was the lowest of any quarter in 2023, with the strongest quarter experiencing just 13 sales. This area typically sees between 20-25 sales per quarter. With low inventory, as just 12 homes remain on the market to end the year, prices remain high in Carmel with the average sale price in Q4 coming in at its third highest mark on record at $2.25M. Total sales volume for the year ($96.6M) failed to reach $100M for the first time since 2012. Carmel is an area that is always in demand and with the hope for new inventory in 2024, we expect to see an improved year ahead.

Average Selling Price

$1,973,770 % 13.2 versus 2022

Days on Market

48

% 77.8 versus 2022

Sales Volume

$96,635,980 % 41.8 versus 2022

Units Sold

49

% 32.9 versus 2022 05 2023 Annual Market Report

Q4 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment home

in millions

home

homes

homes

Q4 2022

Q1 2023

Q2 2023

Average

in millions

Q2 2022

Q3 2023

Q4 2023 < $1m

Median

Total Sales Volume

By Quarter

Q1

Q3 2023

Q4

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

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

2023 Annual Statistics Market Update

Carmel Valley Including The Santa Lucia Preserve

After good sales numbers in Q2 (53 sales) and Q3 (43 sales), Carmel Valley saw its number of sales fall to just 33 in Q4, the lowest total in the area since Q1 2019.

Typically, in this area we see home sales in the low fifties in an average quarter. With high demand and a low number of sales, average sale price came in at its second highest on record, topping $2M. This high average was assisted by seven sales (21%) topping $3M during the quarter. Total sales volume for the year ($294M) came in below the previous three years, but still held well above 2019 and every year prior.

Average Selling Price

$1,749,735 % 8.1 versus 2022

Days on Market

49

% 40.0 versus 2022

Sales Volume

$293,955,524 % 18.8 versus 2022

Units Sold

168

% 11.6 versus 2022

07 2023 Annual Market Report

Q4 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

home

homes

homes

homes

homes

Q4 2022

Q1 2023

Q2 2023

Average

in millions

Q2 2022

Q3 2023

Q4 2023 < $1m

Median

Total Sales Volume

By Quarter

Q1

Q3 2023

Q4

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

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 Pebble Beach saw 16 sales during Q4 of 2023, matching its Q3 total, and marking three straight quarters under 20 sales. A normal quarter in Pebble Beach sees over 30 home sales. Typically known for its high-priced sales, Pebble Beach saw zero home sales over $10M in Q4 and just one sale over $5.5M. Over the course of the year, just five sales over $10M occurred in the area, compared to 13 of such sales closing in both 2022 and 2021 (and seven of these 26 sales topping $20M). Carmel Realty Company represented seven of the ten sides on the five high-dollar sales, including the double-ending of the top sale of the year. With the lack of high-priced sales, the Pebble Beach average sale price came in under $3.6M for Q4, the lowest since Q4 of 2020. Six homes over $10M remain on the market moving into 2024, awaiting highpriced buyers to return to the area.

2023 Annual Statistics

Average Selling Price

$3,613,327 % 36.2 versus 2022

Days on Market

50

% 19.0 versus 2022

Sales Volume

$270,999,500 % 49.1 versus 2022

Units Sold

75

% 20.2 versus 2022 09 2023 Annual Market Report

Q4 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

homes

homes

homes

homes

Q4 2022

Q1 2023

Q2 2023

Average

in millions

Q2 2022

Q3 2023

Q4 2023 < $1m

Median

Total Sales Volume

By Quarter

Q1

Q3 2023

Q4

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

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

2023 Annual Statistics Market Update

Carmel Highlands, Big Sur & South Coast Three sales in the quarter in the area were comprised of two sales near Yankee Point in the Carmel Highlands and one small cabin down the Big Sur Coast. These three sales and their cumulative $6.9M in sales volume for the quarter was the lowest of any quarter since 2019.

Although this is an area that has sporadic sales, just three sales over $5M took place in 2023, after 11 such sales last year, 14 in 2021, and 12 in 2020. Similar to Pebble Beach, the Carmel Highlands and Big Sur are waiting for high-priced sales to return in 2024.

Average Selling Price

$4,018,737 % 15.1 versus 2022

Days on Market

77

% 1.3 versus 2022

Sales Volume

$76,356,000 % 52.6 versus 2022

Units Sold

19

% 44.1 versus 2022 11 2023 Annual Market Report

Q4 2023 Breakdown

Average vs. Median Sales Price

Sales by Segment

in millions

home

homes

Q4 2022

Q1 2023

Q2 2023

Average

in millions

Q2 2022

Q3 2023

Q4 2023 < $1m

Median

Total Sales Volume

By Quarter

Q1

Q3 2023

Q4

$1m–$2m $2m–$3m $3m–$5m

Number of Closed Sales

By Quarter

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

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