Q2 2023 Market Report

Company’s Q2 2023 Significant Sales

Q2 2023 Market Overview

e Monterey Peninsula experienced a strong rebound in the second quarter of 2023 a er almost nine months of slow activity. Beginning in Q4 of last year, transaction and dollar volumes in most markets across the Peninsula were down over 50% year over year. However, in this second quarter of 2023 we saw the amount of sales increase by 25.7% and the total sales volume was up 29.3% in comparison to the rst quarter of this year. While volume levels are still down year over year, we are beginning to experience a much healthier market. is market is beginning to perform like it did in 2019 prior to the Covid initiated spikes. e fear over the banking crisis and other macro-economic concerns appears to be tapering. e impact our market experienced from months of heavy rain and inclement weather is behind us and the demand for living on the Monterey Peninsula remains high.

As you might expect the gradual rebound from a slow market varies by area. is quarter, Carmel-by-the-Sea experienced an increase of 58% in units sold and 71% in total dollar volume over the last quarter. Carmel-by-the-Sea is now only down 15% year over year in total dollar volume, while the greater Carmel area is down 72% and Paci c Grove is down 26% year over year. Pebble Beach also remains down 35% year over year, however, our company alone has experienced a meaningful improvement in homes going into escrow in June and we expect a much healthier Q3.

We expect the momentum to continue through summer and hopefully into next year. Many of the conditions are in line for a healthy market, however, inventory is still down 50% from pre-Covid periods. While this negatively impacts the number of transactions it is good for retaining home values. In our key markets we only experienced high single digit decreases in home values in the last year, and that is a er those same markets experienced 30-40% increased between 2020-2022.

e current market conditions are improving but remain very dynamic. It is essential to have a strong command for exactly what is happening in each market and price point. Our inhouse analytics team tracks dozens of variables in real time and reviews them regularly with our team of professional agents. ere has never been a more important time to ensure you are being represented by the very best. We hope you will reach out to our team with real estate activity you, your friends or family may be considering.

e following report breaks out the nine markets we track with additional performance detail. We hope you will nd this report informative.