Q2 2025 Market Overview
As winter transitioned into spring and the longer sunlit days of early summer, the Monterey Peninsula real estate market entered its active selling season. The second quarter traditionally brings heightened energy to the market, and the early part of the quarter delivered, driven by fresh inventory, strong buyer interest, and the unmistakable allure of life along the Monterey Peninsula’s iconic coastline. However, the momentum briefly paused as global economic uncertainty—sparked by newly announced tariffs and a sharp dip in the stock market—led to a temporary slowdown in transactions. Still, the resilience of the market quickly reasserted itself. By June, activity picked up once again, closing out the quarter with strength and signaling renewed confidence as we head into the heart of the summer season.
Entering April, the Monterey Peninsula’s real estate market was easily outperforming 2024 numbers, with 12% more sales transactions and 21% more sales volume. When the US announced it was placing new tariffs on countries across the globe in early April, the country saw the US stock market plummet. The real estate market also saw an extreme slowdown in homes going into escrow during the month of April. Because of so few homes entering escrow in April, May 2025 saw 44 less transactions on the peninsula than May of 2024. As tariffs were quickly taken off and the stock market rapidly recovered, the real estate market also bounced back and June 2025 outperformed June 2024. Looking at the first six months of the year, 2025 has now seen one less sale than 2024, but is up 4.28% in average sales price and total sales volume is up 4.08% year-over-year.
Most areas across the Peninsula experienced good, but not great, sales levels during Q2. One of the top performing areas of the quarter was the Greater Carmel area, which doubled its number of sales and saw a 58% increase in sales volume versus Q1. Carmel Highlands and Big Sur combined for nine sales during the quarter, a strong number for the area. While Carmel-by-the-Sea saw a typical number of sales, the average sales price in the area jumped back up above $4.5M for the first time in over a year thanks to three large sales over $13M. Carmel Realty Company Agents were proud to have represented five of the six transaction sides on these three luxury sales. Two of these were doubleended sales that occurred off market, putting on display the access and powerful network our Agents bring to the table when assisting their clients.
Each of the nine markets we serve navigate a constant balancing act between supply, demand and pricing. This 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.
Q2 2025 Market Breakdown
Total Sales Volume By Quarter in millions Average vs. Median Sales Price 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
Q2 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
While the average sales price was strong during Q2 ($2.22M), Carmel Valley had a bit of an underwhelming quarter with just 41 home sales, down from 53 sales each of the past two Q2s. This led to an 11.5% drop in total sales volume year-over-year. The average days on market in the area for the quarter was 74 days, which is longer than every area on the peninsula besides Carmel Highlands/Big Sur. One reason for this is the increased inventory in the area with 89 active listings on the market, the most we have seen since mid-2020.
Average Selling Price $2,224,799
Average Days on Market
74
$91,216,750
Units Sold
41 Sales Volume
Q2 2025 Market Breakdown
Total Sales Volume By Quarter in millions Average vs. Median Sales Price in millions
Number of Closed Sales By Quarter
in
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
Pebble Beach saw its first $10M+ sale of 2025, an offmarket sale double ended by Carmel Realty Company Agents. This along with a mix of other home sales led to a quarterly average sales price of $3.44M, the highest since Q2 2024. While 23 sales during Q2 were the most of any second quarter since 2021 and a number that is on par with what we have seen over the last three years, it is still 5-10 sales shy of a fully healthy Pebble Beach market. After poor total sales volume performances over the past two years, Pebble Beach is on pace to top each year’s sales volume in 2025. Carmel Realty Agents represented at least one side on each of the four highest sales in Pebble Beach during the quarter.
Units Sold
23
Q2 2025 Market Breakdown
Sales Price in millions
Sales Price in millions Total Sales Volume By Quarter in millions Average vs.
Number of Closed Sales By Quarter
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 experienced its second-best quarter over the last three years. Nine home sales during Q2 2025 accounted for $32.7M in total sales volume. This gave an average sales price of $3.63M for the quarter, up 4.2% from the last quarter and 12.2% from Q2 of last year. Five of the nine sales during the quarter took place in the Carmel Highlands, including a $14.75M sale in the Otter Cove community. Eight listings over $10M remain on the market, along with another nine over $5M.
Average Days on Market 90 Average Selling Price $3,630,444 versus Q1 2025 4.2% versus Q2 2024 12.2%
9 Sales Volume $32,674,000
Units Sold
Q2 2025 Market Breakdown
Average vs. Median Sales Price in millions
Total Sales Volume By Quarter in millions
Number of Closed Sales By Quarter
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
After a strong Q1, Pacific Grove had a more difficult second quarter of 2025. The average sales price of $1.55M during Q2 was the lowest over the past eight quarters dating back to Q2 2023. The 31 sales were up one sale from last year’s Q2 total, but came in below the Q1 2025 total of 32 sales. The total sales volume ($47.9M) was the lowest of each second quarter since Q2 2020. Inventory in Pacific Grove hasn’t yet seen the spike other areas have, with just 26 homes on the market heading into Q3. This is down from 29 active listings at the same time last year.
31 Sales Volume $47,905,851 Average Days on Market 38 Average Selling Price $1,545,350
Units Sold
Q2 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
The second quarter is typically the highest selling quarter in Monterey. Q2 saw 59 home sales in the area, 14 more than Q1 2025. While this was a 31.1% increase in sales quarter over quarter, 59 sales was the lowest total in the second quarter since 2020. The average sales price ($1.35M) and median sales price ($1.13M) were strong during Q2, with each topping both the previous quarter and same quarter last year. Inventory in Monterey is sitting at its highest level since late 2019 with 82 active listings on the market. Carmel Realty Company currently lists four of the top five luxury listings in Monterey, three of which are in Monterra and the fourth in Pasadera.
Units Sold
Q2 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
#1 Locally Owned Brokerage on The Monterey Peninsula
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.
