2019 Annual Market Report - Courtney Jones

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Carmel-by-the-Sea, Carmel Point, Greater Carmel, Carmel Valley, Pebble Beach, Carmel Highlands, Big Sur & South Coast

2019 Market Report

Dolores South of Seventh ■ P.O. Drawer C ■ Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338


Letter from Courtney

2019 Market Report

Welcome To The New Decade!

T

his new year finds us not only looking back at the past year, but the past decade. And what a decade it was! In 2009 we were recovering from the biggest downturn since the Great Depression. But within just 5 years the market had already reached new heights. According to Wealth-X, in 2009 there were 174,000 people worldwide with a net worth of $30M or more.…By 2019, that number had jumped to 275,000. Between 2000-2009, Pebble Beach had 9 sales between $10-20M and Carmel had 2 sales between $10-15M. Compare that to 2010-2019 when Pebble’s luxury market soared to 26 sales over $10M and Carmel had 6. The peak years were 2014 and 2015 with Pebble’s highest sale at $31.250M and Carmel’s at $24M. It was a decade of growth and wealth. The luxury market continued to soar last year with 7 sales over $10M, all in Pebble Beach. The two largest deals of the year both closed at $24M. One on the 18th hole of the famed Pebble Beach golf course and the other a 1924 Spanish Mediterranean on almost 3 acres of prime oceanfront property. In 2019, sellers ended up with about 95% of their asking price. Marketing periods dropped to a low of 52 days in May to a high of 119 days during the winter doldrums of February.

Courtney Jones REALTOR® | DRE#01806907

831.233.4839

Courtney@CarmelRealtyCompany.com www.CourtneyGJones.com

After months of recession fears, experts are looking ahead with “guarded optimism”. Luxury home prices are expected to remain flat, or decline just slightly, this coming year. The word on the street is “stable” and if a recession does hit, it is expected to be short and mild. With that said, we will be watching US-China relations and expect a slow period around the November continued on page 4

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338


My Current Listings

2019 Market Report

5463 Quail Meadows, Carmel ■ $4,395,000

5th 1 NW Lincoln, Carmel-by-the-Sea ■ $2,340,000

59431 Garrapatos Road, Carmel ■ $2,250,000

370 El Caminito Road, Carmel Valley ■ $1,595,000

106 Calera Canyon Road, Corral De Tierra ■ $1,100,000

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

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Letter from Courtney (continued)

2019 Market Report

election, which is typical. How the fire insurance industry handles the sadly typical California wildfire danger will also be on my radar. Higher premiums will continue and have already changed the way buyers look at property, now paying particular attention to vegetation clearance and safe roofing material. The market will be fickle. Well priced, clean homes will sell more quickly. Accurate pricing will be critical. It won’t necessarily be a buyer’s market or a seller’s market. After months of increased price reductions, we have a better balance then we’ve seen in some time. Neither buyers or sellers seem to be in a hurry. Buyers are showing a willingness to wait for the right house and the best deal. But coupled with limited inventory, seasoned buyers know when it is time to move.

Courtney Jones

Courtney Jones REALTOR® | DRE#01806907

831.233.4839

Courtney@CarmelRealtyCompany.com www.CourtneyGJones.com

Recent Sale

27217 Prado Del Sol, Carmel ■ SP: $3,090,000 Represented Buyer

Recent Sale

1475 Manor, Monterey ■ SP: $3,150,000 Represented Buyer

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338


Table of Contents

2019 Market Report

Carmel-by-the-Sea & Carmel Point ���������������������������������������� 6 Greater Carmel ���������������������������������������� 8 Carmel Valley ������������������������������������������10 Pebble Beach ������������������������������������������� 12 Carmel Highlands, Big Sur & South Coast ���������������������������14

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

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Carmel-by-the-Sea & Carmel Point

About Carmel-by-the-Sea

C

2019 Market Report

Average Selling Price

armel-by-the-Sea and Carmel Point performed quite well throughout 2019. While most of our other markets experienced more volatility in units sold and pricing quarter by quarter, Carmel was steady all year. The total number of sales went up 11% while the average sales price decreased by 7% and total sales volume increased 3%. There was particular strength in the number of transactions in the $1-2M range of the market but the rest of the price ranges also performed well.

2019 Sales by Segment

10% 5% 11% 29%

45%

<$1M | 15 1M-2M | 66 2M-3M | 43 3M-5M | 16 5M+ | 7

vs

Sales Volume

M

vs

Units Sold

Days on Market

vs

Dolores South of Seventh â– P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 â– Fax: 831.624.7338


Carmel-by-the-Sea & Carmel Point

2019 Market Report

Days on Market

Average vs Median Sales Price $2.5M

100

$2M

75

$1.5M

50

$1M

25

2015

2016

2017

Average Sale Price

2018

2015

2019

2016

2017

2018

2019

Median Sale Price

Closed Sales Volume by Quarter

Closed Sales by Quarter

$100M

40

$75M

30

Average vs Median Sales Price by Quarter $2.75M

$2.25M

$50M

20

$25M

10

$1.75M

Q1

Q2

2018

Q3

2019

Q4

Q1

Q2

2018

Q3

Q4

2019

Q1

Q2

2018 2019

Q3

Q4

2018 Median 2019 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

7


Greater Carmel

2019 Market Report

About Greater Carmel

G

Average Selling Price

reater Carmel is considered neighborhoods of Carmel that fall outside of Carmel-by-the-Sea proper and Carmel Point. These neighborhoods experienced a slow start to the year. Poor weather and macroeconomic factors caused a major reduction in sales units and overall volume in the first several months of 2019. A strong second half made up significant ground in sales and volume. Final numbers show average sale price down 4%, unit sales down 14% and total volume o year over year by 18%.

4%

42%

14%

vs

Sales Volume

M

2019 Sales by Segment

1%

vs

<$1M | 32 1M-2M | 30 2M-3M | 11 3M-5M | 3 5M+ | 1

Units Sold

vs

39% Days on Market

Dolores South of Seventh â– P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 â– Fax: 831.624.7338


Greater Carmel

2019 Market Report

Days on Market

Average vs Median Sales Price $1.75M

90

$1.5M

67.5

$1.25M

45

$1M

22.5

2015

2016

2017

Average Sale Price

2018

2015

2019

2016

2017

2018

2019

Median Sale Price

Closed Sales Volume by Quarter

$50M

Closed Sales by Quarter

Average vs Median Sales Price by Quarter

30

$2M

20

$1.5M

10

$1M

$38M

$25M

$13M

Q1

Q2

2018

Q3

2019

Q4

Q1

Q2

2018

Q3

Q4

2019

Q1

Q2

2018 2019

Q3

Q4

2018 Median 2019 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

9


Carmel Valley

2019 Market Report

About Carmel Valley

Average Selling Price

C

armel Valley had a very strong Q4. There was almost four times the sales volume in Q4 compared to Q1 of this year. The sales volume was only down 3% compared to the Carmel area being down by 18%. The average sales price is also up quarter over quarter bringing it to just over $1.3M for the year. The major support comes from the sales growth of homes under $2M.

vs

Sales Volume

M

2019 Sales by Segment

1% 6% 7%

54%

vs

<$1M | 108 1M-2M | 65 2M-3M | 13 3M-5M | 12 5M+ | 2

Units Sold

vs

33% Days on Market

Dolores South of Seventh â– P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 â– Fax: 831.624.7338


Carmel Valley

2019 Market Report

Average vs Median Sales Price

Days on Market

$1.5M

100

$1.25M

75

$1M

50

$0.75M

25

2015

2016

2017

Average Sale Price

2018

2019

2015

2016

2017

2018

2019

Median Sale Price

Closed Sales Volume by Quarter

$100M

Closed Sales by Quarter

Average vs Median Sales Price by Quarter

80

$1.5M

64

$78M

$1.25M

48

$55M

$1M

32

$33M

$0.75M

16

Q1

Q2

2018

Q3

2019

Q4

Q1

Q2

2018

Q3

Q4

2019

Q1

Q2

2018 2019

Q3

Q4

2018 Median 2019 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

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Pebble Beach

2019 Market Report

About Pebble Beach

A

Average Selling Price

fter a slow start in Q1, Pebble Beach had a strong year in 2019. The purchase of second homes in Pebble Beach is mostly discretionary. With government shutdown, trade and stock market issues in Q1 buyers waited for things to settle down. Volume picked up after Q1 and total sales dollars in Q4 almost tripled Q1. Results were impacted by a strength at the high price points with 3 transactions over $20M for the year. These sales also helped drive average sale price up by 13% year over year.

vs

Sales Volume

M

2019 Sales by Segment

9% 6% 16%

49%

vs

<$1M | 11 $1M-2M | 60 $2M-3M | 25 $3M-5M | 19 $5M+ | 7

Units Sold

20% Days on Market

vs

Dolores South of Seventh â– P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 â– Fax: 831.624.7338


Pebble Beach

2019 Market Report

Average vs Median Sales Price

Days on Market

$3.2M

120

$2.65M

90

$2.1M

60

$1.55M

30

2015

2016

2017

Average Sale Price

2018

2019

2015

2016

2017

2018

2019

Median Sale Price

Closed Sales Volume by Quarter

$150M

Closed Sales by Quarter

Average vs Median Sales Price by Quarter

50

$4.5M

40

$120M

$3.5M

30

$90M

$2.5M

20

$60M

$1.5M

10

Q1

Q2

2018

Q3

2019

Q4

Q1

Q2

2018

Q3

Q4

2019

Q1

Q2

2018 2019

Q3

Q4

2018 Median 2019 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

13


Carmel Highlands, Big Sur & South Coast

About Carmel Highlands

T

2019 Market Report

Average Selling Price

he Big Sur, South Coast, Carmel Highlands market typically does not have enough transaction volume for data to be predictive. This year there were 9 sales in this area compared to 18 in 2018. Inclement weather and heavy rains increasingly impact sales in this region. The second half of the year was much more active than the first half. With a number of strong oceanfront and ocean view listings, we expect 2020 to be healthy year.

2019 Sales by Segment

11% 22%

67%

<$1M | 0 $1M-2M | 6 $2M-3M | 2 $3M-5M | 0 $5M+ | 1

vs

Sales Volume

M

vs

Units Sold

vs

Days on Market

Dolores South of Seventh â– P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 â– Fax: 831.624.7338


Carmel Highlands, Big Sur & South Coast

2019 Market Report

Average vs Median Sales Price

Days on Market

$3.5M

260

$2.75M

195

$2M

130

$1.25M

65

2015

2016

2017

Average Sale Price

2018

2019

2015

2016

Closed Sales Volume by Quarter

Closed Sales by Quarter

$7M

$23M

6

$5.25M

$16M

4

$3.5M

$8M

2

$1.75M

Q2

2018

Q3

2019

2019

Average vs Median Sales Price by Quarter

8

Q1

2018

Median Sale Price

$30M

$1M

2017

Q4

Q1

Q2

2018

Q3

Q4

2019

Q1

Q2

2018 2019

Q3

Q4

2018 Median 2019 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1000 ■ Fax: 831.624.7338

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A Cornerstone in Luxury Real Estate for Over One Hundred Years

Courtney Jones REALTOR® | DRE#01806907

831.233.4839

Courtney@CarmelRealtyCompany.com www.CourtneyGJones.com


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