Carmel-by-the-Sea & Carmel Point ◆ Greater Carmel ◆ Carmel Valley Pebble Beach ◆ Carmel Highlands, Big Sur & South Coast
Each year, it seems the real estate market—both nationally and here on the Peninsula—faces some form of external disruption. In our decades of experience, we have seen our share of shifts and surprises. However, since the onset of the COVID-19 pandemic in 2020, we have become particularly adept at staying nimble and adapting to a constantly evolving landscape.
Last year’s disruption came in the form of new operating guidelines stemming from the class action settlement involving certain buyer representatives and the National Association of Realtors. Th is year, we are helping clients navigate significant volatility in the public markets, largely driven by shift ing trade and tariff policies. We expect these dynamics to continue into the summer.
That said, there are several offsetting factors at play in our local market. Market uncertainty and declining investment portfolios often cause buyers to be more cautious, especially when it comes to higher-priced, discretionary purchases. From a positive standpoint, real estate on the Monterey Peninsula has performed very well against the NYSE over the past 20 years. Many investors understand the long-term value of placing capital in a tangible asset that not only appreciates over time but can also be enjoyed along the way. Th is is why our market continues to demonstrate resilience, even in uncertain times. Moreover, if interest rates begin to decline, we anticipate renewed activity and strong demand, particularly in some of our emerging neighborhoods.
The Monterey Peninsula’s real estate market experienced a strong start to 2025. The overall market saw a 14.6% increase in home sales this quarter versus Q1 of last year. In addition, a small 4.9% increase in average sales price led to a 19.7% rise in total sales dollar volume when compared to last year. During Q1, Pebble Beach saw a surge in the entry market, experiencing 15 home sales under $3M. While Carmel-by-the-Sea was a bit slower than usual in Q1, the Carmel Highlands area saw four strong sales during the quarter and added eleven active listings. Though higher-priced homes across the market continued to sell slower than usual in Q1, during the fi rst few days of April our company represented three sides on two amazing sales in Carmel. One sale just off Scenic Road sold for $13M and another on the beach in Carmel sold for $17.5M.
Each of the nine markets we serve goes through a constant balancing act between supply, demand and pricing. Th is makes it essential to have experienced, local, expert representation when buying or selling a home. 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.
Market Update
Carmel-by-the-Sea & Carmel Point
$3,169,905
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While Q4 2024 saw a lower-than-average number of sales paired with high prices, the opposite occurred during the first quarter of 2025 in Carmel-by-the-Sea. The area had a good quarter in terms of number of sales with 21, and a lower-than-normal average sales price of $3.17M. Th is was the lowest average sales price for a quarter in the area since Q3 2021, partly because of just one sale closing over $5M during this time period. While the average sales price was low, the median sales price was strong as 11 out of 21 sales during the quarter fell between $3M-$5M in price. There are 27 active listings on the market to end Q1, a substantial increase versus the 18 actives to end Q1 last year. Carmel Realty and sister brokerage Monterey Coast Realty combined to have an Agent represent a Buyer or Seller on 9 of the 21 transactions in Carmel-by-the-Sea during the quarter. Two of these transactions were double ended.
$66,568,000
21
Total Sales Volume By Quarter
Number of Closed Sales By Quarter
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020 Did You Know?
Carmel-by-the-Sea is known for attracting various celebrities and artists. Clint Eastwood served as mayor of the village from 1986-1988. Other notable celebrities, artists and writers who have called Carmel home include Doris Day, John Denver, Ansel Adams and Jack London.
Market Update
Market Update
The areas outside of Carmel-by-the-Sea & Carmel Point
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The greater Carmel area saw just 10 sales in Q1, a slightly below average number for the area. The average sales price saw a record high during the quarter reaching $3.16M. Th is was in large part due to three homes selling over $5M during the quarter. Inventory is high in the area with 23 active listings to end the quarter, more than double that of the same time last year. With the average days on market being just 28 days, demand continues to be high in the greater Carmel area.
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Average Days on Market
28
Sold
10 Sales Volume $31,595,400
Average Selling Price $3,159,540 versus Q4 2024 42.5% versus Q1 2024 47.7% versus Q4 2024 9.7% versus Q1 2024 5.5% versus Q4 2024 9.7% versus Q1 2024 31.7% 28.6% versus Q1 2024 versus Q4 2024 23.1%
Sales by Segment
Number of Closed Sales By Quarter
Robert Louis Stevenson modeled Treasure Island’s Spyglass Hill after Point Lobos State Reserve near Carmel. “Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Market Update
Market Update
Including the Santa Lucia Preserve
Carmel-by-the-Sea
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Carmel Valley was slow in number of sales during Q1 for the third consecutive year, matching 2024’s total of 36 sales and falling short of 2023’s 39 sales. The last two years, we saw the Q2 sales number jump into the fi ft ies in this area. The average sales price in Q1 2025 was strong, coming in at $1.95M for the quarter, down just 5% year over year. While the average sales price was slightly down, median sales price hit a record high of $1.68M. Th is shows continued appreciation in the area, specifically evident with more homes than average passing the $2M threshold. The average days on the market in Carmel Valley jumped to 84 days, the longest we’ve seen since 2019. One reason is increased inventory in the area. Heading into Q2 2025, 67 homes remain on the market, up 16 homes from last year.
2025 Statistics versus Q4 2024 6.8% versus Q1 2024 5% versus Q4 2024 28.6% versus Q1 2024 5% versus Q4 2024 21.7% versus Q1 2024 12% No Change versus Q1 2024 versus Q4 2024 23.4%
$1,951,083
Number of Closed Sales By Quarter
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020 Did You Know?
Monterey County has 349 vineyards, 82 bonded wineries and 65 tasting rooms. The wide range of climates allow Monterey County to grow over 30 different wine grape varietals.
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Although Pebble Beach continued its slow period of high-priced sales, the lower end of the market returned in a big way. Of the 23 total sales during Q1, 15 came in under $3M. The 23 total sales during the quarter were more than three of the four quarters last year, trailing only Q4 2024’s 31 sales. Th is far surpassed the recordlow nine sales we saw during Q1 2024. Th is abundance of lower-priced sales led to an average sales price of $2.84M for the quarter, below last year’s average price of $3.19M, but up 28.1% from Q1 2024. The highest priced sale of the quarter was 3360 Kingsley Court, listed by Carmel Realty Company. Total sales volume during Q1 2025 ($65.4M) was up 227% from last year’s low number of $19.9M. Seven properties are contingent or pending sale entering Q2, all of which are listed under $5M. Seven additional properties over $10M remain on the market moving into Q2. Only three $10M+ sales occurred during the entirety of 2024, one of which was off market.
Average Days on Market
53
Sales Volume $65,445,250
Average Selling Price $2,845,446 versus Q4 2024 13.5% versus Q1 2024 28.1% versus Q4 2024 35.8% versus Q1 2024 227.2% versus Q4 2024 32.9% versus Q1 2024
120.8%
Units Sold
23
155.6% versus Q1 2024 versus Q4 2024 25.8%
Number of Closed Sales By Quarter
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020 Did You Know?
17-Mile Drive through Pebble Beach is one of only nine private toll roads in the country, and the only one west of the Mississippi.
Market Update
Market Update
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The Carmel Highlands and Big Sur area had a nice Q1 with 5 sales during the quarter. Four sales took place in the Carmel Highlands ranging between $2.7M-$5.6M. The fi ft h sale took place further down the Big Sur coast. Carmel Realty and Monterey Coast Realty Agents represented sides on three of these five sales, including listing the highest priced sale! There is plenty of inventory moving into the second quarter of 2025 with 28 current active listings. The Carmel Highlands is currently a hot spot with 11 of these listings.
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Average Days on Market 124
$17,420,827
Average Selling Price $3,484,165 versus Q4 2024 30.1% versus Q1 2024 53.8% versus Q4 2024 68.2% versus Q1 2024 284.6% versus Q4 2024 51.2% versus Q1 2024 29.5% 150% versus Q1 2024 versus Q4 2024 54.5%
Sales by Segment
Number of Closed Sales By Quarter
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020 Did You Know?
Local settings from around the Monterey Peninsula have provided the backdrops for more than 180 films and television shows. You’ll recognize many scenes in HBO’s award winning mini-series Big Little Lies in Big Sur and the Carmel Highlands.
As the current market share leaders in Carmel-by-the-Sea and Pebble Beach and leading luxury brokerage for over 110 years, we have consistently delivered outstanding quality and service to our clients. Our handpicked team of agents share our commitment to quality, integrity, and the community. Unmatched experience, local knowledge, and collaboration has allowed our team to achieve the highest average agent production and dominate the market year after year.
When you work with Carmel Realty Company, you can take comfort in knowing you are working with an authentic expert in Monterey Peninsula real estate.