2nd Quarter 2015 Report : Shrinking Inventory Catching up With Market
Shrinking Inventory Catching up With Market
By: Paul Brocchini & Mark Ryan
Although our real estate market remains robust, many of the numbers are down due mostly, we think, to the tightening supply. We are hampered in showing you this as the new market configurations in our Multiple Listing Service do not allow us to compare the second quarter in all of the markets with the same time frame from last year.
We do have comparative numbers for Del Rey Oaks, Marina, Pacific Grove, Pebble Beach and Seaside. Adding these together we find there were 19 fewer active listings from last year. That does not appear to be a dramatic difference but it gives us an indication of what has been going on in the overall market.
Welcome Back Del Rey Oaks and Carmel HighlandsWith the new zip code designation we lost the statistics for Carmel Highlands and Del Rey Oaks. Turns our we can search by postal city which has allowed us to bring both back. This will make our Carmel Highlands’ friend, Jim Cooney, happy. Jim told us how unhappy he was with the deletion of the Highlands.
Monterey/Salinas Highway is mixed in with Greater Monterey, so it remains on the disappeared Leading Indicators — Gross Dollar Volume and Unit SalesBoth gross dollar volume and unit sales declined from last year. Gross dollar volume was down, $44,227,875 or 10 percent. The number of closed transactions declined by 85 deals or 20 percent. Normally, one would think those declines signal a weakening market which is not the case.
There simply are fewer choices for buyers. The Market Barometer, which measures the percentage of listings in escrow, is strong. Only Carmel Highlands has a meager barometer reading of 8%. All of the other markets are above our good-market minimum of 20 percent headed by super strong readings of 100 percent, 71 percent and 65 percent in Del Rey Oaks, Seaside and Marina and solid 41 percent readings in Greater Monterey and Pacific Grove. The high-end markets of Carmel-by-the-Sea, Pebble Beach and Greater Carmel all have readings in the 20 to 24 percent range.
Median sales prices were up in seven of the ten markets surveyed. The quarterly data base is so thin we do not take the ups and downs too seriously. We have more faith in the annual comparison as true indicators. We suggest, however, that the Distribution of Sales Chart has a lot to tell us. We leave it up to you to play with the many combinations available. One number we find interesting is 125 sales out of the 326 closed deals in the quarter were over one million dollars, a full 37 percent of the closed transactions on the Monterey Peninsula.
Paul Brocchini and Mark Ryan are real estate agents with Coldwell Banker Del Monte Realty, Carmel-by-the-Sea office at Junipero 2SW of 5th. They can be reached at either 831-238-1498 or 831-601-1620. The charts are based in whole or in part on data supplied by MLSListings.com, our Multiple Listing Service (MLS). Neither the Monterey Association of Realtors nor the MLS guarantee or is responsible for their accuracy. Data maintained by the MLS may not reflect all real estate activity in the market.