2022 Annual Market Report | Paul Brocchini and Mark Ryan

3184 17 Mile Drive, Pebble Beach ■ SP: $36.28M Represented Seller

3210 Whitman Place, Pebble Beach ■ SP: $18.5M Represented Buyer

162 Spindri Road, Carmel ■ SP: $12.74M Represented Buyer

3105 17 Mile Drive, Pebble Beach ■ $12.887M Represented Buyer & Seller

1605 Sonado Road, Pebble Beach ■ SP: $12M Represented Buyer & Seller

3200 Palmero Way, Pebble Beach ■ SP: $12M Represented Buyer

Market Overview

Following two years of extraordinary growth, the real estate market on the Monterey Peninsula has normalized. e number of transactions, total dollar volume and average sale prices all hit record highs beginning in the second half of 2020 and continuing into the rst half of 2022. However, beginning in the summer of 2022, the number of transactions and total sales dollar volume has returned for the most part to pre-COVID levels. e positive news is that while transaction volume is down signi cantly from the previous two-year peak, home values on the Peninsula are holding up nicely. In this regard, once again, our market is greatly outperforming most markets across the country.

Across the markets we track here on the Peninsula, the number of units sold was down 31% in 2022 over 2021, and total sales dollar volume was down 25% in the same period. With the slowdown in sales beginning in summer, the Q4 year-over-year comparison is even more dramatic. e number of sales in Q4 2022 was 235, compared to 478 homes being sold in Q4 2021. Total sales dollar volume in the market in Q4 2022 compared to 2021 was nearly cut in half as well.

While we are clearly being a ected by economic pressure, our market was also down in sales due to historic low inventory levels. With continued healthy demand to live on the Peninsula, home values have remained strong. While it is di cult to measure value in real time, our analytics team has run a variety of analysis that all point to pricing holding up much better than transaction volume. We believe that home prices remain steady in some markets across the Peninsula and are down just a bit in others. Considering the value appreciation we experienced in home prices in 2020 and 2021, any small correction we experience now will be much less, and home values will remain well ahead of where they were prior to the pandemic related spike.

With so many drivers a ecting our market right now, it is essential to work with an experienced and informed agent. Our agents have extensive hands-on local knowledge about every market across the Peninsula. Moreover, they are supported by a dedicated marketing and analytics team that allows for clients to make informed decisions and to maximize value when buying or selling.

e following report breaks out ve of the markets we track with additional performance detail. We hope you will nd this report informative. As always, please be sure to contact us if there is anything we can do to help you, or your friends and family, with real estate plans in our marketplace.

CARMEL-BY-THE-SEA

Market Update

$4,614,105

4 of 2022 in Carmel-by-theSea experienced what many areas saw in terms of number of sales falling. Just 19 homes sold during the quarter, down 32% from Q3 2022 and 60% from Q4 of 2021. Although the number of sales fell, the sales mix involved more higher priced sales than usual. is resulted in a record-high average sales price of $4.6M. Even with this high average price, total sales volume was at its lowest point since Q2 of 2020.

Quarter

7.7% 2022 vs 2021

21.3% Q4 2022 vs Q4 2021

$87.7M

25.4% 2022 vs 2021

52% Q4 2022 vs Q4 2021

DAYS ON MARKET Q4 SALES BY SEGMENT

Q4

41

6.9% 2022 vs 2021

10.8% Q4 2022 vs Q4 2021

Q4 UNITS SOLD

19

30.8% 2022 vs 2021

60.4% Q4 2022 vs Q4 2021

Q4 SALES VOLUME

Q4 AVERAGE SELLING PRICE

Carmel-by-the-Sea & Carmel Point

GREATER CARMEL

Market Update

Greater Carmel had just 10 sales in the quarter and 73 for all of 2022, the lowest of any full year since 2011. 59 average days on market was over double what we have seen in the area over the past three quarters. Total sales volume of $166M during 2022 was down from the last two years, but still up substantially over every year prior to 2020.

$1,760,000

13.5% 2022 vs 2021

1.9% Q4 2022 vs Q4 2021

$17.6M 14.6%

vs 2021

vs

59 40% 2022 vs 2021

20.4% Q4 2022 vs Q4 2021

10

24.7% 2022 vs 2021 54.5% Q4 2022 vs Q4 2021

Q4 SALES VOLUME

CARMEL VALLEY

Market Update

Carmel Valley experienced a di cult fourth quarter with only 34 sales, lower than every quarter since Q1 of 2019. For the year, units sold was down 36.5% and total sales volume down 34.4% versus 2021. While we saw average sale price come down a bit near the end of the year, Carmel Valley still set a yearly record in the category, topping $1.9M for the rst time.

$1,867,699 3.2%

Q4 SALES VOLUME

Market Update

The sales mix in Pebble Beach turned up several higher price sales in Q4 of 2022 versus the previous quarter, resulting in average sales price increasing 29.3% quarter over quarter. Seven out of 22 homes sold in the quarter topped the $5M mark. For the year, Pebble Beach saw only 94 homes sold. is was the rst time under 100 sales for the year since 2011. Average sale price for the year was $5.6M, up over 31% from 2021. Total sales volume for the year was $532M, down 20% from last year, and yet the second highest on record.

Q4 SALES VOLUME

PEBBLE BEACH

CARMEL HIGHLANDS

Market Update

Withonly four sales and $14M in total sales volume during Q4, this area had its worst statistical quarter since the pandemic. For the year, average sale price was up over 25% versus 2021, the second highest increase of any are we track, behind only Pebble Beach. To begin 2023, 16 homes remain on the market, showing signs that this coming quarter and year has potential for an increase in sales.

Carmel Highlands, Big Sur & South Coast