First Quarter 2017 Trendless but Strong

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Calm and Trendless Beginning to Market Year
First Quarter Report 2017

By: Paul Brocchini & Mark Ryan

Here is a succinct look of how the first quarter of 2017 stacked up against the same period last year:

1. There were 12 more transactions this year, an increase of 0.9%. Call it a breakeven

2. Gross dollar volume decreased by $14 million, a four percent decline.

3. Median sales prices up a little bit in five markets and down fractionally in the other three. Prices looking flat so far. This is not surprising as 2016 saw such sharp increases.

4. Average Days to Sell was more in four markets and fewer in four markets. It took a bit longer to sell properties in Carmel Area, Monterey Area, Pacific Grove and Pebble Beach.

The picture which jumps out is “more of the same.”

Affordability

The Distribution of Sales chart pointedly illustrates how expensive the Peninsula is. Fifty-one percent of first quarter sales were over one million dollars. Take Seaside out of the equation and 60% of the sales topped the million dollar mark. Imagine how daunting these numbers are to first-time buyers!

Barometer

The Barometer allows us to look at the percentage of listings in escrow. A low percentage signifies a slow market and a high percentage the opposite. The Barometer numbers on April 1st were strong with the exception of Carmel Highlands and Pebble Beach. The readings were exceptionally strong in Seaside, 54%, Pacific Grove 47%, and Monterey, 45%. Those are three terrific markets for sellers.

The number of available listings, i.e., listings not under contract, differs from market to market. Four of the markets have more properties on the market this year and four fewer. For example, last year Carmel-by-the-Sea had 39 listings versus 41 this year; Carmel Highlands 11 versus 20; Pebble Beach 65 versus 78; Seaside 19 versus 26.

The changes in availability from last year to this are modest so we can conclude that market conditions are much as they were a year ago: relatively tight inventory resulting in a strong seller’s market. The possible exception currently is Pebble Beach with 78 available listings on April 1st.
Although there is an absence of obvious trends, the market continues to be good, and the strong Barometer numbers forecast continuing success.

Paul Brocchini and Mark Ryan are real estate agents with Carmel Realty Company, NE Corner of Dolores & 8th, Carmel-by-the-Sea. They can be reached at either 831-238-1498 (Mark) or 831-601-1620 (Paul).

The charts are based in whole or in part on data supplied by the Monterey County Association of Realtors’ Multiple Listing Service (MLS). Neither the Association nor the MLS guarantees or is responsible for their accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity.