Good morning my Friends,

As we get into Summer, I’m happy to say local demand remains, albeit at a lower velocity than before- but still at a higher rate than normal. Several properties in the high end, and super high end, have gone into contract over the past week or less; our team was responsible for one of these, and a couple of others were properties that have been sitting for quite awhile. One could almost say it looks like the market is taking off for the Summer selling season. Our team, like everyone else, has been light on sellers and heavy on buyers over the last two years. We are finally beginning to see some more inventory – maybe double what we had at the end of Q4 2021, but still low against a “normal” year. Below are a few cliff notes I’ve put together on the state of the market.

– The recently retired chief economist from the California Association of Realtors, Leslie Young, and the former chief economist for the National Association of Realtors, John Tuccillo, both share the opinion that the economy will not stagnate with inflation, due to an employment deficit of 2 – 3 million, tight lending policies and demand which far outstrips supply. Both expect to see moderate job growth over the next year.

– Inflation continues to make it almost risky not to own real assets such as real estate, cars, watches, collectibles, etc.

– The Ukrainian war, China’s lockdown and global energy supply and equity market problems continue to be wildcards.

– Construction and labor bottlenecks continue for the foreseeable future.

– Lumber down to a whole 47% from March to $695 per thousand feet of board. Lumber’s high was $1,544 in May 2021.  

– Prices are starting to soften and render final purchase prices sometimes slightly below asking, once again, with 19% of home sellers, nationally, dropping their listing prices during a 4 week period, ending May 22.

– Local demand in Carmel and Pebble Beach remains much stronger than your average year. We still see multiple offers on choice properties and in choice areas like Carmel and Pebble Beach, but less-so.

– Average sale prices in Monterey County are up 12% YTD and 18% for Santa Cruz County.

As always, scroll down for a link to market stats by area on our website, and to see some of our activity and highlights from our prime markets. Please reach out to me if you know of someone looking to sell their home, as we have a variety of active buyers in all ranges. 

Cheers,
– Ryan