Good morning my Friends,
A few thoughts I have from what I’m seeing on the ground here- our multiple offer listings have gone to about half or 1/3 as many offers over about 45-60 days. This appeared to coincide with the heavy prime rate increases- I see folks averaging around mid 4’s to 5 for jumbo 30 yr fix mortgages right now, which will be more like 5 to mid 5’s now after today’s rate hike- the FED seems intent on tampering inflation. Personally, I prefer the more balanced market of listings being available for 30 day averages before selling to a single party, so a tampering off in the demand isn’t such a bad deal. It leaves room for people to move less stressfully and for sellers to identify a replacement in many cases.
Prices continue to stay on the increase in my eyes, locally, but not nearly at the rate that they were going. In the ultra high-end I see demand so far less affected, as that level of the market is less influenced by financing and shifting conditions. One fascinating observation on the general market, is that newer construction in sub-par locations continues to drive home sales at much higher velocity and dollar average than more dated homes on much better real estate. That being said, here is what the data is actually saying…..
Zillow’s outlook on home price increases over the next year are 14.9% through March 2023, down from their target of 16.5% the previous month, while their analysts anticipated 5.5% growth over the next 3 months, down from their previous estimate of 5.9%.
The Consumer Price Index (CPI) hit a 40-year high in February at a 7.9 percent annualized rate.
Redfin released new numbers that 65 percent of buyer’s offers faced competition with multiple offers across the nation, which was down from 66.7 percent the month before. The reason that means anything, is that is the first month-over-month decline since September.
Pending home sales index (PHSI) dropped 1.2% from the previous month to 103.7 in March, while falling 8.2 percent on an annual basis while market conditions normalize, according to the National Association of Realtors.
Demand for purchase mortgages was down 17% last week from a year ago.
Janet Yellen says economy remains strong.
And then all that being said, Realogy, the company that owns our company, Sotheby’s International Realty, just posted Q1 2022 gains of 6% increase over Q1 2021.
Cheers,
– Ryan
Featured Listing
This enchanting European pied-a-terre was fully renovated and rebuilt from the ground up in 2010. Sited on a sun drenched, oak-studded lot, this beautifully finished stucco home draws you inside to it’s tasteful French motif and shabby-chic touches.
Some Recent Sales
Our team has seen some activity recently including a new pending sale on our listing at 13th 2 SE of Mission. We also went into contract on a new build in one of the local community developments.
CARMEL
13th 2 SE Mission | $1,595,000 Asking
Currently under Contract
CARMEL
25690 Hatton Rd | $5,520,000
Represented Buyer
CARMEL
Casanova & 13th | $4,605,000
Represented Buyer
Significant Local Sales
For May, there were a couple of significant local sales I want to go into. We saw two noteworthy sales in Carmel
2625 Ribera Road
Carmel | $10,775,000
The home of the late Betty White sold on frontline Carmel Meadows neighborhood with multiple offers from an asking price of $7,950,000
0 Torres 2 SE of 10th
Carmel | $6,250,000
This 3 lot, divisible property, sold from an asking price of $5,200,000. It lacked the necessary water or water meters to actually separate the lots and build individual homes, but represented one of the larger parcels that have sold in Carmel at 56,870 sq ft; the average lot in Carmel is 4,000.
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