2022 Annual Market Overview

831.624.2300 montereycoastrealty.com

Dolores and Seventh Carmel-by-the-Sea

Followingtwo years of extraordinary growth, the real estate market on the Monterey Peninsula has normalized. The number of transactions, total dollar volume and average sale prices all hit record highs beginning in the second half of 2020 and continuing into the first half of 2022. However, beginning in the summer of 2022, the number of transactions and total sales dollar volume has returned for the most part to pre-COVID levels. The positive news is that while transaction volume is down significantly from the previous two-year peak, home values on the Peninsula are holding up nicely. In this regard, once again, our market is greatly outperforming most markets across the country.

Across the nine markets we track here on the Peninsula, the number of units sold was down 31% in 2022 over 2021, and total sales dollar volume was down 25% in the same period. With the slowdown in sales beginning in summer, the Q4 year-over-year comparison is even more dramatic. The number of sales in Q4 2022 was 235, compared to 478 homes being sold in Q4 2021. Total sales dollar volume in the market in Q4 2022 compared to 2021 was nearly cut in half as well. While we are clearly being affected by economic pressure, our market was also down in sales due to historic low inventory levels. With continued healthy demand to live on the Peninsula, home values have remained strong. While it is difficult to measure value in real time, our analytics team has run a variety of analysis that all point to pricing holding up much better than transaction volume. We believe that home prices remain steady in some markets across the Peninsula and are down just a bit in others. Considering the value appreciation we experienced in home prices in 2020 and 2021, any small correction we experience now will be much less, and home values will remain well ahead of where they were prior to the pandemic related spike.

With so many drivers affecting our market right now, it is essential to work with an experienced and informed agent. I have extensive hands-on local knowledge about every market across the Peninsula. Moreover, I am supported by a dedicated marketing and analytics team that allows for clients to make informed decisions and to maximize value when buying or selling.

The following report breaks out all nine of the markets we track with additional performance detail. I hope you will find this report informative. As always, please be sure to contact me if there is anything I can do to help you, or your friends and family, with real estate plans in our marketplace.

- John Romley

831.624.2300 montereycoastrealty.com

Dolores

CARMEL-BY-THE-SEA MARKET UPDATE

Quarter 4 of 2022 in Carmel-by-the-Sea experienced what many areas saw in terms of number of sales falling. Just 19 homes sold during the quarter, down 32% from Q3 2022 and 60% from Q4 of 2021. Although the number of sales fell, the sales mix involved more higher priced sales than usual. This resulted in a record-high average sales price of $4.6M. Even with this high average price, total sales volume was at its lowest point since Q2 of 2020.

$4,614,105

7.7% 2022 vs 2021

21.3% Q4 2022 vs

$87.7M

25.4% 2022 vs 2021 52%

2021

19

30.8% 2022 vs 2021 60.4%

41 6.9% 2022 vs 2021 10.8%