2025 is proving to be more robust than 2024. Despite the turmoil in the stock market, Q1 saw strong activity in our local real estate market. We have more inventory, which is a welcome sign, and while buyers are expressing concerns around where the overall economy is headed, they are still buying. Furthermore, it’s a more balanced negotiation between buyers and sellers. The overall economy is too dynamic to predict. The implications of the tariffs probably won’t be seen until the third quarter, and while many of the affluent are in a wait and see pattern, we are hoping for some interest rate reductions in the coming year to spur activity. We maintain that real estate is a solid investment choice, especially in these volatile times.
As always, please look to the pages ahead for specific data pertaining to your neighborhood and please reach out with any questions.
All my best,
Estate in the Carmel Highlands Expansive Ocean Views in Carmel Woods California Contemporary in Pebble Beach
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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. This 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.
Average Selling Price
$3,169,905
Average Days on Market
85
Q4 2024
Sales Volume
$66,568,000
Units Sold
21
Q1 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
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.
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Greater Carmel
The areas outside of Carmel-by-the-Sea & Carmel Point
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. This 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.
28 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%
10 Sales Volume $31,595,400 Average Days on Market
Units Sold
Q1 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
Median Sales Price in millions
Did You Know?
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
Carmel Valley
Including the Santa Lucia Preserve
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 fifties 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. This 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.
Average Selling Price $1,951,083
Average Days on Market
84
$70,239,000
Units Sold
36 Sales Volume
Q1 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
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.
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Pebble Beach
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. This far surpassed the recordlow nine sales we saw during Q1 2024. This 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
23 Sales Volume $65,445,250
53 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
155.6% versus Q1 2024 versus Q4 2024 25.8%
Q1 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
Median Sales Price in millions
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.
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Carmel Highlands, Big Sur & South Coast
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 fifth 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.
Average Selling Price $3,484,165 versus Q4 2024
versus Q1 2024 53.8%
Average Days on Market 124
Sales Volume $17,420,827
Units Sold
5
Q1 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
Median Sales Price in millions
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.
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Pacific Grove
Pacific Grove had a very successful Q1, topping the previous three Q1 sales volume totals with $54.3M in sales. This volume came from 32 total sales during the quarter, ten more than Q1 2024. The average sales price was high, coming in just under $1.7M. This was a 4.7% increase from last quarter and 1.4% increase year over year. The 36 average days on the market were lower than each quarter last year. With prices remaining high, this shows significant demand. Pacific Grove is prepped for a strong year in 2025. Six different Carmel Realty and Monterey Coast Realty Agents represented Buyers and Sellers in Pacific Grove during Q1.
Average Days on Market
36 Average Selling Price $1,696,938
32 Sales Volume $54,302,000
Units Sold
Q1 2025 Market Breakdown
Number of Closed Sales By Quarter
Did You Know?
Point Pinos Lighthouse in Pacific Grove is the oldest continually operating lighthouse on the West Coast.
“Monterey
County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Monterey & Del Rey Oaks
Similar to the past two years, Q1 was a slow quarter in Monterey. Just 45 sales occurred in the area during the quarter. The average sales price topped $1.2M for the quarter, which was a good number, up 17% from last quarter and down 13.5% from Q1 2024. The two highest priced sales that occurred during Q1 were both located in the Alta Mesa neighborhood. One of these sales was double ended by collaborating Carmel Realty Agents. Monterey typically sees a nice uptick in sales into the high 60s or 70s during the second quarter. Thirteen homes are already in escrow and inventory is strong with 49 additional actives heading into Q2.
45 Sales Volume $54,607,500 Average Days on Market 49 Average Selling Price $1,213,500
Units Sold
Q1 2025 Market Breakdown
Did You Know?
Nearly a quarter million tons of sardines were processed on Cannery Row in 1945, the year John Steinbeck’s Cannery Row was published. Cannery Row was previously named Ocean View Avenue but was renamed to honor John Steinbeck’s well-known novel.
“Monterey County Fun Facts”, Monterey County Convention & Visitors Bureau, 2020
Authentic Market Leaders & True Industry Experts
As the market leading luxury brokerage, for over 100 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 in 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.
