Monterey Peninsula Condo Report – 4th Quarter and Year-End 2016
Monterey Peninsula Condo Report
4th Quarter and Year-End 2016
Dollar Volume Highest in History —Tight Inventory Continues
By: Paul Brocchini and Mark Ryan
Condominiums are the “affordability” choice on the Monterey Peninsula. Here are a few examples of the difference between the median sales price of detached houses and condos in the 4th quarter of last year: Carmel-by-the-Sea: $1,650,000 vs. $901,000; Carmel Area: $1,522,000 vs. $587,500; Monterey Area: $750,000 vs. $375,250.
The large price gap strengthens the attraction of condos in this increasingly unaffordable area. A quick glance at the Market Barometer, which shows the percentage of listings under contract, illustrates the attraction. The lowest reading since 2012 was 27% on October 1, 2014, in itself an excellent reading. Many of the readings were over 30% and there were 10 over 40% including one that hit 50%. What these high readings mean is that the market has strongly favored sellers for at least five years, In spite of this bias, the market has remained attractive to buyers due to its relative affordability.
Contrast these numbers to the rock bottom reading of October 1, 2006 when there were 128 listings and only seven properties under contract, a pathetic five percent. In these heady times it is smart to remember no market is immune to downturns.
Gross dollar volume set a record in 2016 exceeding $119 million (see ten year gross dollar volume chart).
Ten Year Analysis
The 10-year charts are always interesting. Most of the markets are way off the median sales prices of 2006. Six of the nine are down substantially and three are up marginally. Ten years ago the boom market was in full flower powered, as we now know, by predatory lenders who not only put unqualified people into loans they had no chance of paying but also were defrauding the investing sector with packaged loan portfolios that were criminally rated at A or better on the risk scale.
It was a ghastly time, and we feel the price numbers attained then have little or no relevance as they were artificially inflated. What we do know, at this point, is the market is strong and seems to be based on supportable evidence.
ATTENTION BUYERS AND SELLERS – PAUL AND MARK IN THE TRENCHES
As the above analysis illustrates, we know this market and are here to provide you with smart representation. Call, email or text and we will respond immediately. And we are never too busy to accept your referrals.
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.
4th Quarter Charts
Annual Charts Covering Ten Years of Activity