Dear Friends,
We are officially in the Fall selling season. Car Week came and went 2 weeks ago, with scores of people overrunning the Peninsula and bringing lots of eyes and retail sales to the community. We saw an uptick of sales that was mostly unrelated to visiting car enthusiasts, and instead almost entirely related to sidelined demand waiting for new inventory. We did pick up a few new buyers, but no immediate escrows. I heard the same from other teams. Demand is still there but falling with each rate hike. Overall on the Peninsula, the number of closed units is down 21% – 24% from this time last year, but average sale prices up 8%, year-over-year, and the median is up 6%. From about June to present, you will see the list price to sale price ratio drop from the 100% range to now about 96.1% in the overall area.
What’s happening on the ground? Well, certain area pockets continue to fire and even further firm, while others in less demand drop. Entry level for several cities seems to be firming slightly, as do high-end areas such as the Golden Rectangle in Carmel-by-the-Sea, which has only 3 active residential listings, at $7M and above. That being said, the less desirable stuff seems to be softening while there remain multiple offers on other things.
Who the heck really knows what’s to come, but we don’t have the poor lending practices in place that were present in ’08. Its also important to note that we continue to have massive housing NEED, on a national level, and construction costs continue to be on par with the replacement value of existing homes, especially in our area. There really aren’t many negative markers out there besides the FED cranking up rates. Peninsula real estate continues to move with what would be somewhat healthy velocity in a normal year, albeit seller’s can’t ask whatever they want anymore- they must be pricing their homes with accuracy.
Mortgage rates here today:
Jumbo: 5.25%
Conforming: 5.5%
As always, please reach out if you or a loved one requires real estate assistance, and please scroll down for more activity and data.
Cheers,
Ryan & Team
In Escrow
This is a fun one! We sold the childhood home of a close friend of mine to some other good friends who were moving to the area! This is the Mission Fields area of Carmel, which is a very desirable spot, especially for younger families. Halloween trick or treating here is a blast, and Mission Trails are just across the street.
Some Recent Sales
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CARMEL
26047 Atherton | Â $2,000,000
Sold
CARMEL
25690 Hatton Rd | $5,520,000
CARMEL
3038 Alta | Â $3,635,000
Significant Local Sales
August was a slower month, but there were a couple of standouts..
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San Antonio 3 SE of 9th Ave
Carmel-by-the-Sea | $6,350,000
One row back from frontline Scenic Drive, this finished home had 200 sq ft more than it’s allowable lot coverage of 1,600 on this 4,000 sq ft lot. A charming newer construction nod to old Carmel.
25560 Shafter Way
Carmel | $5,665,000
