A lot happening in the market this month! By a lot, I mean there continues to be a lot of local demand for real estate- even some palpable firming of values, not withstanding that the FED hasn’t lowered rates at all. In fact, this week they reported inflation having risen to a slightly hotter 3.2%. Not a lot of reason for them to make moves, although its still likely we see 2-3 cuts this year. Currently, you can pick up a Jumbo 30 yr mortgage at around 6.5%, which is a little softer than recent. With access to affordable debt more scarce these days, it is interesting to point out that inventory levels continue to be at all-time lows in many market across the Monterey Peninsula, and even in the markets driven more by financing. On the whole, it remains a seller’s market.
Spring seems to be trying to settle in here in town, and after the last couple of months of rainstorms and atmospheric rivers, it is beautiful! Similarly to last year, everything is so green and lush, and the wildflowers are everywhere. The typical real estate season tends to ramp up slowly from about the time of the AT&T golf tournament, and then really take off in May, however with inventory levels so low, we’re encouraging people to get on market now, while there’s little competition. One such example, would be our current listing at San Carlos 7 NE of Camino Del Monte, in downtown Carmel-by-the-Sea (see marketing video below in body of email). This particular property was on the market in February 2022, and while it is very charming, the existing competition dampened the activity. This month when we came active on the market, it was a whole different story with more than one offer, and a sale contract in about a week. Something to think about if you’re on the fence about listing this early in the year. When we get more into Spring and Summer, all the sellers that have been waiting, jump on at the same time. It can be advantageous as a seller to be your own island.
What’s happening on the ground? Well, the sales year is off to a slow start, for all the aforementioned reasons, but mostly lack of inventory and seasonality. Many sellers have also been sidelined due to the storms. In the city of Carmel, there was only 1 closed sale for the first two months of the year, compared to 3 in 2023 and 10 in 2022, for that same time period. Big difference! And just 5 sales in Pebble Beach, compared to 16 during that time in both 2023 and 2022. We hear endless comments from buyers about how the options for buying continue to dry up every year. In February, there were 10 active listings in Carmel. That being said, we are still anticipating that inventory to roughly double in the coming months. Pebble Beach had 30 active listings in February, which is actually on the healthier side for this time of year, however the complaint we hear is that the inventory there is not scattered around evenly, and the quality is not the same as in prior years.
Overall, we are expecting prices to remain strong for 2024, with a big emphasis on recently finished, and even turn-key offerings.
Cheers,
Ryan Melcher
In Escrow in One Week
SAN CARLOS 2 NE CAMINO DEL MONTE, CARMEL-BY-THE-SEA
2 BED Â | Â 2 BATH Â | Â 1,235 SQ FT Â | Â 3,920 SQ FT LOT
Classic Carmel simply encapsulated. Located on one of only a few dead-end streets in the city, this property is just a 2 minute walk to restaurants, and yet affords privacy and quiet not found in other downtown properties- a hidden gem of Carmel. From the thoughtfully restored shingle siding and custom window treatments, the quality of this home can be felt from each individual space; the character and old world charm, much the same. The kitchen features a new Bertazzoni oven/range, and on afternoons, one can find wonderful ambient light in the living room to relax by, read a book, or entertain. Offering one bedroom and full bath on the main floor, and an ensuite bedroom and full bath on the second floor, the traditional floor plan provides ease of living. A separate media room/office space is accessed at ground level from outside the home for added privacy. Connecting from the media room to the extra large garage, a separate workshop and storage area can be found, and a bonus, legal 1/4 bath (toilet). Lastly, the backyard features one of the most unique and charming elements we have seen in Carmel- a natural, bubbling stream surrounded by beautiful, manicured boxwoods, walking garden trails and expansive patio area for entertaining. This is truly a unique and special offering.
