TERRIFIC SECOND QUARTER — PRICES ON THE UPSWING
Reprinted from The Carmel Pine Cone July 29,2016
By: Paul Brocchini & Mark Ryan
Let’s start the second quarter report with what we consider to be the most telling numbers, gross dollar volume.
The stars of the quarter were Carmel Valley, up 61% over last year and Carmel-by-the-Sea, which recorded a jump in dollar volume of 44%. Those are impressive gains.
Please remember that our current definition of Carmel Valley in these reports includes only properties in the 93924 zip code, which begins just beyond Mid-Valley and extends out beyond the Village and up Laureles Grade Road.
Over the past year we have been reporting that although dollar volume was going up there seemed to be little gain in median selling prices, the increased volume the result of strong performances in the high end of the spectrum not higher prices.
In the second quarter that scenario changed. Please stop to study the Median Sales Price chart, and you will see that every market was up in the quarter with the exception of Carmel Highlands which, with only three sales, hardly counts as a marker.
Some of the gains were significant: Carmel-by-the-Sea, up 34%; Carmel Area up 55%; Carmel Valley, up 46%; Monterey Area, up 21%; Pacific Grove up 13%. It is going to be interesting to see if this trend continues,
Unit sales in the quarter mirrored dollar volume. The overall increase was only four percent but the markets with large dollar volume increase had nice gains in the number of transactions too. For example, Carmel-by-the-Sea and Carmel Valley, up 140%
and 38% respectively.
The main message of the quarter is that price inflation has begin to hit in a big way. Asking prices are getting more aggressive which may or may not take some of the steam out of the market. Anyone about to get in the market as a buyer or seller has to watch this carefully. And, of course, appraisals are a different animal all together. Will lenders go along with higher values or resist?
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 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.