Q2 2021 Market Report | Anita Madison, Monterey Coast Realty

Q2 2021 MARKET REPORT

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea DRE#01871677

Carmel-by-the-Sea & Carmel Point Greater Carmel Carmel Valley Pebble Beach Carmel Highlands, Big Sur & South Coast Monterey Pacific Grove Seaside Marina

Letter from Anita 831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

Dear Friends, Remarkably, we now find ourselves halfway through 2021 with nothing but incredible news on our local real estate market. Once again, Monterey Coast Realty has compiled and produced the most comprehensive market report possible. This report acts as a tool, for buyers and sellers alike, giving us all an insight into how the market is performing and allowing us to use that knowledge to better assess our own real estate needs. My professional opinion is that it is a great time to buy and sell! If you are wondering if it is the right time for you to make a move, please don’t hesitate to contact me. I would be honored to discuss the complexities of this market and all of the options that are available to you.

Market demand for houses across The Peninsula remained very strong in the second quarter of 2021. Current indications are that the 2021 calendar year volume levels will stay at exceedingly high levels. There were 477 sales in the nine markets we cover across The Peninsula representing a total volume of $932M in sales. This volume level is well ahead of Q1, 2021 and nearly three times the volume recorded in Q2 of last year.

Sales levels in Q2, 2021 are for the most part up from last quarter and only modestly behind last year’s record breaking Q3 and Q4. Another current driver in the market is the extremely low inventory of homes for sale. This recent quarter ended with 233 listed properties across all nine markets we track, compared to 454 at this same time last year. With inventory down almost 50% and demand remaining high, we are seeing measurable increases in home values. The market has also been experiencing multiple offers on a large percentage of new listings. This is a new phenomenon for our market but fortunately it’s not new to me and although it has added a level of complexity for both the buying and selling side, I am uniquely experienced to guide you through.

While the real estate market here on our beautiful peninsula is indeed complex and all buying and selling scenarios are unique, we are armed with the data needed to intuitively react. I hope you find this report as beneficial as I do and as always, please be sure to contact me if there is anything that I can do to help you, or your friends and family, with real estate plans in our marketplace.

Thank you,

Anita Madison Kim DiBenedetto Fine Estates 831.277.5256 anita@montereycoastrealty.com DRE#01501785

2

Q2 2021 MARKET REPORT

Q2 2021 Significant Sales

866 Sunset Drive, Pacific Grove SP: $1,059,000 • Represented Seller

926 Ruth Court, Pacific Grove SP: $1,500,000 • Represented Buyer

17629 River Run, Salinas SP: $760,000 • Represented Buyer

3

Q2 2021 Market Overview 831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

Market demand for houses across The Peninsula remained very strong in the second quarter of 2021. Current indications are that the 2021 calendar year volume levels will stay at exceedingly high levels. There were 477 sales in the nine markets we cover across The Peninsula representing a total volume of $932M in sales. This volume level is well ahead of Q1, 2021 and nearly three times the volume recorded in Q2 of last year.

There are two important facts to note in this quarter’s results. First, the year over year comparisons look extraordinary because we are comparing a very healthy Q2 of 2021 against the Covid impacted Q2 of 2020. Last April and May, sales activity was severely impacted by Covid health and regulatory restrictions. Second, this last quarter proved that the level of out-of-market demand has remained very high. Sales levels in Q2, 2021 are for the most part up from last quarter and only modestly behind Q3 and Q4 of last year, when we experienced record breaking quarters in nearly every market across The Peninsula.

Another current driver in the market is the extremely low inventory of homes for sale. This recent quarter ended with 233 listed properties across all nine markets we track, compared to 454 at this same time last year. With inventory down almost 50% and demand remaining high, we are seeing measurable increases in home values.

The market has also been experiencing multiple offers on a large percentage of new listings. This is a new phenomenon for our market and has added a level of complexity for both the buying and selling side. While each scenario is unique, we are just now getting helpful data to inform decisions based on location, price, demand, and other factors.

We hope you will find the attached quarterly report informative. As always, please be sure to contact us if there is anything we can do to help you, or your friends and family, with real estate plans in our marketplace.

4

Q2 2021 MARKET REPORT

Table of Contents Carmel-by-the-Sea & Carmel Point ................................6 Greater Carmel ...................................................................8 The areas outside of Carmel-by-the Sea & Carmel Point

Carmel Valley .................................................................. 10 Pebble Beach ...................................................................12 Carmel Highlands, Big Sur & South Coast ...................14 Monterey ...........................................................................16 Pacific Grove ....................................................................18 Seaside ............................................................................. 20 Marina ............................................................................... 22

5

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

C A R M E L - BY-T H E - S E A M A R K E T U P D AT E

SALES BY SEGMENT

C

armel-by-the-Sea had a very strong second quarter of 2021 with 49 properties changing hands and total market volume of $160M. The number of sales is up 172% over the Covid impacted second quarter of 2020 and is also up 40% over a healthy Q1 of 2021. Total volume is also well ahead of Q2 last year and Q1 of 2021. The average sale price of $3,266,057 is at an all-time high in Q2 of 2021. This is a product of increased prices due to strong demand and low inventory but is also driven a mix of higher priced homes selling in the quarter.

<$1M | 1 $1M-2M | 15 $2M-3M | 14 $3M-5M | 13 $5M+ | 6

31%

$3,266,057 AV E R AG E S E L L I N G P R I C E

2%

25.5% vs Q1 2021 57.1% vs Q2 2020

27%

$160M

49

38

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

76% vs Q1 2021 328% vs Q2 2020 6

12%

29%

40% vs Q1 2021 172% vs Q2 2020

100% vs Q1 2021 7% vs Q2 2020

Q2 2021 MARKET REPORT

Carmel-by-the-Sea & Carmel Point Days on Market*

Average vs Median Sales Price

$3.4M

50

$2.6M

37.5

$1.7M

25

$0.9M

12.5

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$200M

80

$3.4M

$150M

60

$2.6M

$100M

40

$50M

20

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

$1.7M

$0.9M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

7

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

G R E AT E R C A R M E L M A R K E T U P D AT E

SALES BY SEGMENT

C

armel experienced a healthy Q2 with 28 home sales and just under $57M in total sales volume. That sales volume is well ahead of the same quarter last year and very close to the volume in Q1 of this year. Average sale price in the area has declined but this is a product fewer high priced homes trading in the quarter. Overall demand remains high and with only 17 homes on the market at the end of the quarter, we are continuing to see an increase in home values.

<$1M | 7 $1M-2M | 10 $2M-3M | 7 $3M-5M | 3 $5M+ | 1

36%

$2,034,134

25%

AV E R AG E S E L L I N G P R I C E

4%

12.9% vs Q1 2021 52% vs Q2 2020

25%

$56.9M

28

31

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

2% vs Q1 2021 228% vs Q2 2020 8

11%

12% vs Q1 2021 115% vs Q2 2020

46% vs Q1 2021 52% vs Q2 2020

Q2 2021 MARKET REPORT

Greater Carmel

The areas outside of Carmel-by-the Sea & Carmel Point

Days on Market*

Average vs Median Sales Price

$2.4M

80

$1.8M

60

$1.2M

40

$0.6M

20

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$70M

40

$2.4M

$53M

30

$1.8M

$35M

20

$18M

10

$1.2M

$0.6M

Q1

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

9

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

C A R M E L VA L L E Y M A R K E T U P D AT E

SALES BY SEGMENT

C

armel Valley has now recorded 4 quarters of very healthy sales volume. A total of 330 homes have sold in the market in the trailing 12 months. This is well ahead of annual sales record for the area. 2020 saw an annual record sales level of 253 home sales. There were 87 sales in Q2 contributing to a record quarterly volume level of $161M. This is a very positive statement demonstrating the strength of the Carmel Valley Market even with inventory levels down considerably.

<$1M | 22 $1M-2M | 38 $2M-3M | 14 $3M-5M | 8 $5M+ | 5

44%

$1,858,162

25%

AV E R AG E S E L L I N G P R I C E

9.4% vs Q1 2021 41.7% vs Q2 2020

9%

$161.6M

87

58

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

39% vs Q1 2021 252% vs Q2 2020 10

6%

16%

26% vs Q1 2021 142% vs Q2 2020

14% vs Q1 2021 2% vs Q2 2020

Q2 2021 MARKET REPORT

Carmel Valley Days on Market*

Average vs Median Sales Price

$1.9M

60

$1.4M

55

$1.0M

50

$0.5M

45

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$180M

100

$1.9M

$135M

75

$1.4M

$90M

50

$45M

25

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

$1.0M

$0.5M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2020 Average

Q3

Q4 2021 Median 2021 Median

11

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

P E B B L E B E AC H M A R K E T U P D AT E

SALES BY SEGMENT

P

ebble Beach had another very strong quarter with 44 home sales and total volume of $205M. This is the exact same number of sales as Q1 but with more higher priced homes trading total sales dollar volume increased in Q2 over Q1 by approximately 10%. Average sale price trading hit a new high at $4,672,897. This is a result of 25 homes over $3M trading in the quarter, 16 of which were over $5M as well. With several new higher priced homes in escrow at the beginning of Q3, we expect the strength in this market to continue.

$4,672,897

<$1M | 8 $1M-2M | 9 $2M-3M | 2 $3M-5M | 9 $5M+ | 16

36% 20%

18%

AV E R AG E S E L L I N G P R I C E

10% vs Q1 2021 23.5% vs Q2 2020

$205.6

44

50

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

10% vs Q1 2021 172% vs Q2 2020 12

5%

20%

no change

vs Q1 2021

120% vs Q2 2020

25% vs Q1 2021 52% vs Q2 2020

Q2 2021 MARKET REPORT

Pebble Beach Days on Market*

Average vs Median Sales Price

$5.0M

110

$3.8M

82.5

$2.5M

55

$1.3M

27.5

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$220M

60

$5.0M

$165M

45

$3.8M

$110M

30

$55M

15

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

$2.5M

$1.3M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

13

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

C A R M E L H I G H L A N D S M A R K E T U P D AT E

SALES BY SEGMENT

F

or the 10 years leading up to Covid (2020), The Carmel Highlands Market averaged 13.7 home sales per year. Last year that number increased to 54 for the year 2020. This quarter there were 15 transactions, more in a single quarter than we averaged for the 10 years prior to Covid. This confirmed the recent surge we are seeing in demand for this beautiful community. Total sales volume of $63M is second highest quarterly volume behind Q3 of last year. Average sale price is strong at $4.2M and inventory levels are a bit stronger than other markets with 24 homes currently listed.

$4,239,412

<$1M | 3 $1M-2M | 2 $2M-3M | 4 $3M-5M | 1 $5M+ | 5

13% 27%

20%

AV E R AG E S E L L I N G P R I C E

69.5% vs Q1 2021 19% vs Q2 2020

$63.5M

15

132

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

111.9% vs Q1 2021 143% vs Q2 2020 14

33%

7%

25% vs Q1 2021 200% vs Q2 2020

32% vs Q1 2021 2% vs Q2 2020

Q2 2021 MARKET REPORT

Carmel Highlands, Big Sur & South Coast Days on Market*

Average vs Median Sales Price

$7.0M

140

$5.3M

105

$3.5M

70

$1.8M

35

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$90M

30

$7.0M

$68M

22.5

$5.3M

$45M

15

$23M

7.5

$3.5M

$1.8M

Q1

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

15

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

M O N T E R E Y M A R K E T U P D AT E

SALES BY SEGMENT

T

he Monterey Market set a record for quarterly sales volume in Q2 with $127M in transaction volume. There were 105 sales in the quarter and 48% were over $1M. This increase in the number of higher priced homes contributed to an increase in average sale price to $1,215,160. This is the second highest quarterly average sale price the market has seen. Inventory continues to be the biggest challenge in this market with only 40 homes currently listed for sale compared to 73 at this time last year. Given the strong demand for less product we expect values to continue to increase.

<$1M | 55 $1M-2M | 36 $2M-3M | 8 $3M-5M | 6 $5M+ | 0

52%

$1,215,160

34%

AV E R AG E S E L L I N G P R I C E

24.6% vs Q1 2021 5.85% vs Q2 2020

8%

$127.5M

105

21

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

51% vs Q1 2021 160% vs Q2 2020 16

6%

21% vs Q1 2021 176% vs Q2 2020

36% vs Q1 2021 64% vs Q2 2020

Q2 2021 MARKET REPORT

Monterey Days on Market*

Average vs Median Sales Price

$1.3M

60

$1.0M

45

$0.7M

30

$0.3M

15

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$130M

110

$1.3M

$98M

82.5

$1.0M

$65M

55

$33M

27.5

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

$0.7M

$0.3M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

17

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

PAC I F I C G R O V E M A R K E T U P D AT E

SALES BY SEGMENT

P

acific Grove experienced very strong sales activity with 62 homes trading in Q2. That number compares to 53 trading in Q1 of this year and only 30 trading in this same quarter last year. Total sales volume in PG was $86M which is the second highest quarterly result in the last 6 quarters, just slightly behind Q3 of last year. Demand for PG continues to be very strong and the number of homes for sale sits at 25, compared to 49 in the same quarter last year.

<$1M | 21 $1M-2M | 32 $2M-3M | 8 $3M-5M | 1 $5M+ | 0

34%

$1,401,548

52%

AV E R AG E S E L L I N G P R I C E

2%

10.7% vs Q1 2021 44.5% vs Q2 2020

$86.8M

62

22

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

4% vs Q1 2021 199% vs Q2 2020 18

13%

17% vs Q1 2021 107% vs Q2 2020

45% vs Q1 2021 47% vs Q2 2020

Q2 2021 MARKET REPORT

Pacific Grove Days on Market*

Average vs Median Sales Price

$1.6M

50

$1.2M

37.5

$0.8M

25

$0.4M

12.5

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$100M

80

$1.6M

$75M

60

$1.2M

$50M

40

$25M

20

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

$0.8M

$0.4M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

19

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

S E A S I D E M A R K E T U P D AT E

SALES BY SEGMENT

S

easide has had a very strong quarter within number of sales and total sales volume. There were 49 sales in Q2 compared to 32 in Q1 and 24 in Q2 of last year. This sales velocity has driven the market to a new total volume record of $35M for the quarter, compared to $23M last quarter and $13M in Q2 of last year. Average sale price continues to be very strong at $714K. Inventory levels are low but not as low as other markets with 19 homes for sale at the end of Q2 compared to 16 at the end of last quarter and 20 at this time last year.

< $400 | 1 $400 - 600 | 8 $600 - 800 | 30 $800 - 1,000 | 6 $1M+ | 4

61%

$714,401

16%

AV E R AG E S E L L I N G P R I C E

2% 8%

1.4% vs Q1 2021 24% vs Q2 2020

$35M

49

12

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

51% vs Q1 2021 153% vs Q2 2020 20

12%

53% vs Q1 2021 104% vs Q2 2020

57% vs Q1 2021 no change vs Q2 2020

Q2 2021 MARKET REPORT

Seaside Days on Market*

Average vs Median Sales Price

$0.8M

40

$0.6M

30

$0.4M

20

$0.2M

10

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$40M

50

$0.8M

$30M

37.5

$0.6M

$20M

25

$10M

12.5

$0.4M

$0.2M

Q1

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

21

831.624.2300 montereycoastrealty.com Dolores and Seventh Carmel-by-the-Sea

M A R I N A M A R K E T U P D AT E

SALES BY SEGMENT

M

arina has been maybe the tightest inventory market on the Peninsula. There are currently only 12 homes for sale in Marina compared to 39 at this time last year. While volume is healthy at $30M for the quarter, it is down slightly from $34M last quarter and well behind Q3 and Q4 of last year when the market was in dramatic rebound from Covid. The demand remains very high in this market, putting pressure on prices and influencing increased home values. There have now been several home sales well over $1M, six in this quarter alone. The current average sale price of $831K is a new high for the market.

< $400 | 0 $400 - 600 | 4 $600 - 800 | 11 $800 - 1,000 | 16 $1M+ | 6

30%

$831,799 13.9% vs Q1 2021 25.7% vs Q2 2020

16%

$30.7M

37

10

SALES VOLUME

UNITS SOLD

D AY S O N M A R K E T *

10% vs Q1 2021 47% vs Q2 2020 22

43%

11%

AV E R AG E S E L L I N G P R I C E

21% vs Q1 2021 16% vs Q2 2020

23% vs Q1 2021 69% vs Q2 2020

Q2 2021 MARKET REPORT

Marina Days on Market*

Average vs Median Sales Price

$900K

40

$675K

30

$450K

20

$225K

10

Q2 2020 Q3 2020 Q4 2020 Average

Q1 2021

Q2 2021

Q2 2020 Q3 2020 Q4 2020

Average vs Median Sales Price

by Quarter

Closed Sales by Quarter

$70M

100

$0.9M

$53M

75

$0.7M

$35M

50

$18M

25

$0.5M

$0.2M

Q1

Q2

2020

Q3

Q4

2021

Q2 2021

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales Volume by Quarter

Q1

Q1 2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4 2020 Median 2021 Median

23

Q2 2021 MARKET REPORT

Results Driven Experts

Anita Madison 831.277.5256

anita@montereycoastrealty.com DRE#01501785