merritt's peninsula market update: february, 2013
DESCRIPTION
Monterey Peninsula Real Estate Market updateTRANSCRIPT
Merritt’s Market Update
Monterey Peninsula
February, 2013
©2012 Merritt Ringer
Read, Seen, or Heard
Here’s an chart that speaks volumes about recent
American history:
Source: Institute for Research on Labor & Employment, UC Berkeley
Table of Contents
The Big Picture…………………….…….………... 3
Inventories…………………...…….…….………... 4
Prices…………………………………….………… 5
Financing………………………………….……….. 6
Carmel………………………………...….….…… 7-8
Carmel Valley…………………………..….……… 9-10
Pebble Beach………………………...……….…… 10-11
Pacific Grove…………………………….…….…..12-13
Monterey…………………………………....….…..14-15
Monterey-Salinas Corridor………………...……. 16-17
Seaside & Marina ………………………...……… 18-19
An Agents Life …………………...….…...…….…..20
End Note …………………………………………....21
Caveat: I’m no economist (despite the performance of
most, this is not a boast). I also lack the gift of prophecy;
from the evidence, I’m not alone. But our real estate
market is buffeted and buoyed by all manner of larger
forces, so I do watch the horizons. I also dig into our
local market. The information here is as reliable as I can
make it, but nothing like comprehensive.
THE BIG PICTURE
U.S. existing home inventory for sale:
U.S. existing home sale prices:
INVENTORY
We hear a lot about how inventory has declined. The chart below shows how
relative this is. Inventories have fallen a lot from the peaks of the financial crisis.
But they’re higher than in the hot market early last decade.
Monterey Peninsula: 2003-201
In each of the sections ahead, you can take a similar long view of the local markets
that interest you.
PRICES
Below is a chart of the average closed sales prices, per square foot, of Monterey
Peninsula homes from 2003 through 2012. These numbers, though a bit crude, are
a fair proxy for our market as a whole. They show that prices generally have
fallen about 35-40% from the peak.
In the sections that follow, you can look at the impact the crisis had on prices in
the markets that interest you. Note that prices have stabilized, or are climbing a
bit, in most markets.
FINANCING
Rates
Rates fluctuate by the second and different lenders offer various packages, so the
numbers below are just a snapshot.
The rates below are for loans without points.
Up to $417,000
30 year fixed: 3.5%
5/1 ARM: 2.675%
Jumbo (over $483,000 here)
30 year fixed: 4%
5/1 ARM: 2.75%
The addition of a point reduces the rate .125-.250%.
CARMEL: 10 YEARS OF INVENTORY & PRICES
Carmel prices are down generally 30-35%.
CARMEL CLOSED HIGH & LOW
This chic contemporary home in Carmel Meadows took top spot. With vast views
of Pt. Lobos & Monastery Beach, this 3,500 sf home had great sleek charm. In
2010, it sold for $4.550M. It just sold again for $4.5M.
This is what the bottom of our market looks like today: a 1,156 sf 2Bd/2Ba home
at the intersection of Forest & Mountain View. It sold without hitting the open
market for $700K.
CARMEL VALLEY: 10 YEARS OF INVENTORY & PRICES
CARMEL VALLEY CLOSED HIGH & LOW
On Carmel Valley Rd., a bit west of Boronda. Said the listing agent: “2 bed
3 bath contemporary main house retains original charm but is fully functional &
features a 1 bed 1 bath attached guest unit or office space PLUS a 1 bed 1 bath
detached guest house built in 2001.” It had 3.276 acres, a pool, and almost 4 acres.
It sold for $1.345M.
A bank-owned home, also on Carmel Valley Road (near Schulte) offered
3Bd/2.5Ba and just over 1600 sf on an acre. It sold a little over the asking price
for $421K.
PEBBLE BEACH: 10 YEARS OF INVENTORY & PRICES
PEBBLE BEACH CLOSED HIGH & LOW
On Porque Lane, between the Lodge & Cypress Point, this single-level home had
been extensively rebuilt about a decade ago. It offered 3Bd/2.5Ba, in 3,905 sf, on
over 1 1/2 acres. It sold in 9 days for $2.950M.
On Lookout Rd, near Forest Lake, this single-level ranch, with 2500 sf, & 4 Bd/2.5
Ba, faced greenbelt. It was a bit dated. They started by asking $980K; after 539
days of trying, they closed for $800K.
PACIFIC GROVE: 10 YEARS OF INVENTORY & PRICES
PACIFIC GROVE CLOSED HIGH & LOW
On 11th, near the shore, this 15 year-old 3Bd/2.5Ba home had almost 2100 sf. In
2006, it sold for $1.145M; in 2010, it sold for $875K; it just closed for $775K, a
fall from its peak of about a third.
Del Monte Park captured the bottom with this home on Presidio. It had a mere one
bedroom and one bath in 632 sf, The agent valiantly claimed charm but little was
evident. It was bank-owned and sold for $265K.
MONTEREY: 10 YEARS OF INVENTORY & PRICES
MONTEREY CLOSED HIGH & LOW
An updated home on Doud got the top price last month. It boasted 5Bd/3Ba in
over 3,000 sf with lots of tall ceilings. It sold near the asking price in just over a
month for $775K.
A 1Br/1Ba condo took the bottom spot with a full-priced sale of $92.5K.
MONTEREY-SALINAS CORRIDOR: 10 YEARS OF INVENTORY & PRICES
(east to San Benancio)
MONTEREY-SALINAS CLOSED HIGH & LOW
In Villa Oaks, a small gated community off San Benancio, this 5 year old home had
4600 sf, 5Bd/4.5Ba. It sold in 2009 for $1.3M. It just closed again for $1.325M.
Also off San Benancio, on Harper Canyon Rd., this home offered 3Bd/2Ba in
1,779 sf. It sold fast for $448.5K.
SEASIDE & MARINA: Average Price/ Sq. Ft.
Marina prices/sq. ft.
Seaside prices/sq. ft.
Marina’s highest closing was a short-sale on Quebrada Del Mar Road. It was 24
years old, almost 2100 sf, & it had 4Bd/2.5Ba. In 2001, it closed for $465K. It
just sold again for $385K.
Seaside Highlands, our perennial holder of the top spot, snagged it again with this
sale. A 5,700 sf home with 4Bd/2.5Ba, it sold for $651K.
MARINA & SEASIDE CLOSED HIGH
An Agent’s Life
Carmel Valley on a rainy winter’s day.
Thank your for taking a few minutes with my e-magazine. Your com-
ments & questions are welcome. Let me know about issues you’d like to
see addressed here or stories and facts you’d like others to know.
Know anyone thinking of buying or selling, someone who would benefit
from informed & straight counsel? Please keep me in mind. Referrals
like yours are the heart of my practice.
© Merritt Ringer 2012
Merritt’s Market Update
©2013 Merritt Ringer