Pacific Coast - Intero Real Estate Market Report - July 2016

Buy.Sell.Stay.

July 2016 Market Report Pacific Coast Carmel, Monterey, Pebble Beach, Santa Cruz

Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix August 2016

Executive Insights The Summer Heat is Cooling Down As we started ramping up the summer-selling season back in April of this year, we were predicting a hot market. Little did we know that it was going to be RED HOT! In fact, Intero saw the best month ever in units sold and dollar volume in its 14-year history during the month of June.

When you hit all-time highs, things are bound to cool off, and that’s exactly what the Bay Area real estate market experienced last month. In July we saw a downward trend in inventory that impacted sold listings. Because the level of new for-sale listings was trending downward and buyers were being more cautious based on timing, sold listings were down in every region of the Bay Area. There were 14.16% less Bay Area homes sold in July (2369) then there was in June (2760). These numbers support a trend that the Bay Area is pulling back from an incredibly hot seller’s market to a more normal seller’s market.

In what looks like a contradiction to this cooling trend is the fact that a majority of the Bay Area regions saw for-sale listings up from June to July. But unlike the last three months, the amount of for-sale listing increases were closer to flat than the huge double-digit percentages we were seeing previously. This is having an impact on the volume of sold listings we’re seeing.

Also contributing to this cooling trend was seasonality. With the start of school just around the corner, most buyer and sellers are less motivated to move at this busy time of the year. This has more sellers staying put and not offering their property to the market because they don’t want to disrupt the start of their kid’s school year.

Even though we’re seeing a more moderate market as we roll into August, it still remains very healthy. With unemployment figures near 8-year lows and a lack of inventory in the most desirable Bay Area locations, we will still see high demand with more buyers than listings. But in other areas, buyers will have more choice and be able to take a more deliberate approach in their buying decision. This will keep listings in those areas on the market a little longer than we’ve experienced in the last several years and force sellers to price more appropriately. We’ll continue to keep you informed with our take and hopefully provide you with information that can help in your buying or selling process.

By Tom Tognoli President & CEO Intero Real Estate Services

Market Highlights Pacific Coast

Total Homes for Sale

382

Luxury Homes for Sale*

100 *Homes for sale above $3 million.

Total Homes Sold

Average Days on Market

Average List Price

Average Sold Price

86

$2,819,000

49

$1,372,000

Inventory Pacific Coast

200

333

314

296

232

258

250

268

316

300

382

Sold

368

For Sale

368

363

379

356

350

349

400

400

Total Number Of Homes:

60

86

112 86

102

83

92

15-Oct

68

110

50

107

110

136

15-Sep

87

97

100

117

150

0 15-May

15-Jun

15-Jul

15-Aug

15-Nov

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

16-May

16-Jun

16-Jul

It is a Neutral Market Property Sales (Sold) July property sales were 86, down 36.8% from 136 in July of 2015 and 23.2% lower than the 112 sales last month.

Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 3 units of 0.8%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from.

The number of current inventory is up 3.8% compared to the previous month.

Property Under Contract (Pended) There was an increase of 28.6% in the pended properties in July, with 126 properties versus 98 last month. This month’s pended property sales were 5% higher than at this time last year.

Inventory By The Numbers Home Price Range

Homes For Sale

Year Over Year % Difference

< $500K

1

-75%

$500K $1M

84

-25%

$1M - $3M

197

14.5%

$3M - $5M

48

14.3%

$5M - $10M

37

42.3%

$10M +

15

36.4%

Pricing Pacific Coast

Average Prices in $,000:

For Sale Price

3500

$3,240

3000 2500

Sold Price

$2,394

$2,480

$2,570

$2,477

$2,678 $2,669

$2,868

$2,945

$3,028

$2,906 $2,890 $2,890 $2,844 $2,819

2000 1500 1000

$1,634 $1,335

$1,146 $1,081 $1,199 $1,034

$1,315

$1,548

$1,206

$1,203

$1,332

$1,421

$1,296

$1,372 $1,155

500 0 15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

16-May

16-Jun

16-Jul

The Average For Sale Price is Depreciating The Average For Sale Price in July was $2,819,000, up 9.7% from $2,570,000 in July of 2015 and down 0.9% from $2,844,000 last month.

The Average Sold Price is Neutral The Average Sold Price in July was $1,372,000, up 19.7% from $1,146,000 in July of 2015 and up 18.8% from $1,155,000 last month.

The Median Sold Price is Appreciating The Median Sold Price in July was $1,042,000, up 15.1% from $905,000 in July of 2015 and up 9.5% from $952,000 last month.

Pricing By The Numbers

Average Price Per Square Foot.

$634

11.0% Month over Month

On The Market Pacific Coast

Average Days On Market

80

72

70 60

69

73

70 63

55

62

61

53

53

50

46

50

50

49

16-Jun

16-Jul

38

40 30 20 10 0 15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

The Days on Market Shows Downward Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyerâ&#x20AC;&#x2122;s market, a downward trend indicates a move towards more of a Sellerâ&#x20AC;&#x2122;s market.

The DOM for July 2016 was 49, down 2% from 50 days last month and up 6.5% from 46 days in July of last year.

16-Feb

16-Mar

16-Apr

16-May

DOM By The Numbers Home Price Range

Days on Market

Year Over Year % Difference

< $500K

0

N/A

$500K $1M

41

0%

$1M - $3M

42

-7%

$3M - $5M

63

-90%

$5M - $10M

315

100%

$10M +

0

N/A