Q2 2021 Market Report | Kim DiBenedetto, Carmel Realty Company

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CA R M E L R E A LT Y C O M PA N Y

Q2 2021 Market Report

C A R M E L- B Y-T H E -S E A , C A R M E L P O I N T, G R E AT E R C A R M E L , C A R M E L VA L L E Y, P E B B L E B E A C H , C A R M E L H I G H L A N D S , B I G S U R & S O U T H C O A S T, M O N T E R E Y, PA C I F I C G R O V E Dolores South of Seventh ■ P.O. Drawer C ■ Carmel-by-the-Sea, California 93921 | 831.622.1000 ■ CarmelRealtyCompany.com | DRE#01871627

A C or n e r s t on e i n Lu x u ry R e a l E s tat e f or O v e r O n e Hu n dr e d Ye a r s


Letter from Kim Dear Friends, Remarkably, we now find ourselves halfway through 2021 with nothing but incredible news on our local real estate market. Once again, Carmel Realty Company has compiled and produced the most comprehensive market report possible. This report acts as a tool, for buyers and sellers alike, giving us all an insight into how the market is performing and allowing us to use that knowledge to better assess our own real estate needs. My professional opinion is that it is a great time to buy and sell! If you are wondering if it is the right time for you to make a move, please don’t hesitate to contact me. I would be honored to discuss the complexities of this market and all of the options that are available to you. Market demand for houses across The Peninsula remained very strong in the second quarter of 2021. Current indications are that the 2021 calendar year volume levels will stay at exceedingly high levels. There were 477 sales in the nine markets we cover across The Peninsula representing a total volume of $932M in sales. This volume level is well ahead of Q1, 2021 and nearly three times the volume recorded in Q2 of last year. Sales levels in Q2, 2021 are for the most part up from last quarter and only modestly behind last year’s record breaking Q3 and Q4. Another current driver in the market is the extremely low inventory of homes for sale. This recent quarter ended with 233 listed properties across all nine markets we track, compared to 454 at this same time last year. With inventory down almost 50% and demand remaining high, we are seeing measurable increases in home values. The market has also been experiencing multiple offers on a large percentage of new listings. This is a new phenomenon for our market but fortunately it’s not new to me and although it has added a level of complexity for both the buying and selling side, I am uniquely experienced to guide you through. While the real estate market here on our beautiful peninsula is indeed complex and all buying and selling scenarios are unique, we are armed with the data needed to intuitively react. I hope you find this report as beneficial as I do and as always, please be sure to contact me if there is anything that I can do to help you, or your friends and family, with real estate plans in our marketplace. Thank you,

Kim DiBenedetto 831.601.9559

Kim@CarmelRealtyCompany.com www.KimNegotiatesHomes.com DRE#01278679

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Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Q2 2021 MARKET REPORT

My Recent Significant Sales

Dolores 2 NW of 12th, Carmel-by-the-Sea ■ LP: $3.395M Represented Buyer

39 Spanish Bay Circle, Pebble Beach ■ LP: $3.5M Represented Seller

3187 17 Mile Drive, Pebble Beach ■ LP: $11.995M Represented Seller

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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Market Overview

M

arket demand for houses across The Peninsula remained very strong in the second quarter of 2021. Current indications are that the 2021 calendar year volume levels will stay at exceedingly high levels. There were 477 sales in the nine markets we cover across The Peninsula representing a total volume of $932M in sales. This volume level is well ahead of Q1, 2021 and nearly three times the volume recorded in Q2 of last year. There are two important facts to note in this quarter’s results. First, the year over year comparisons look extraordinary because we are comparing a very healthy Q2 of 2021 against the Covid impacted Q2 of 2020. Last April and May, sales activity was severely impacted by Covid health and regulatory restrictions. Second, this last quarter proved that the level of out-of-market demand has remained very high. Sales levels in Q2, 2021 are for the most part up from last quarter and only modestly behind Q3 and Q4 of last year, when we experienced record breaking quarters in nearly every market across The Peninsula. Another current driver in the market is the extremely low inventory of homes for sale. This recent quarter ended with 233 listed properties across all nine markets we track, compared to 454 at this same time last year. With inventory down almost 50% and demand remaining high, we are seeing measurable increases in home values. The market has also been experiencing multiple offers on a large percentage of new listings. This is a new phenomenon for our market and has added a level of complexity for both the buying and selling side. While each scenario is unique, we are just now getting helpful data to inform decisions based on location, price, demand, and other factors. We hope you will find the attached quarterly 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.

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Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Table of Contents

Q2 2021 MARKET REPORT

Carmel-by-the-Sea & & Carmel Carmel Point Point ������������������ .................. 66 Carmel-by-the-Sea .................. Greater Carmel Carmel ���������������������������������������������������� .................................................... 88 Greater .................................................... The areas outside of Carmel-by-the Sea & Carmel Point The The areas outside of Carmel-by-the Sea & Carmel Point

Carmel Valley Valley ..................................................... ����������������������������������������������������� ..................................................... 10 Carmel 10 Pebble Beach Beach ........................................................ ������������������������������������������������������� ....................................................... 12 Pebble 12 Carmel Highlands, Highlands, Big Sur & South Coast ���� .... 14 Carmel Big Sur & South Coast ...................................... 14 Monterey ������������������������������������������������������������� ............................................................. 16 Pacific Grove ������������������������������������������������������ Pacific ...................................................... 18

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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C A R M E L - B Y-T H E - S E A

AVERAGE SELLING PRICE

Market Update

C

armel-by-the-Sea had a very strong second quarter of 2021 with 49 properties changing hands and total market volume of $160M. The number of sales is up 172% over the Covid impacted second quarter of 2020 and is also up 40% over a healthy Q1 of 2021. Total volume is also well ahead of Q2 last year and Q1 of 2021. The average sale price of $3,266,057 is at an all-time high in Q2 of 2021. This is a product of increased prices due to strong demand and low inventory but is also driven a mix of higher priced homes selling in the quarter.

SALES BY SEGMENT <$1M | 1 $1M-2M | 15 $2M-3M | 14 $3M-5M | 13 $5M+ | 6

$3,266,057 25.5% vs Q1 2021 57.1% vs Q2 2020 SALES VOLUME

$160M 76% vs Q1 2021

328% vs Q2 2020

12%

2%

DAYS ON MARKET

100% vs Q1 2021

27%

7% vs Q2 2020

31% 29%

38

UNITS SOLD

49

40% vs Q1 2021

172% vs Q2 2020

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Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Carmel-by-the-Sea & Carmel Point

Q2 2021 MARKET REPORT

Average vs Median Sales Price

Days on Market*

$3.4M

50

$2.6M

37.5

$1.7M

25

$0.9M

12.5

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$200M

80

$3.4M

$150M

60

$2.6M

$100M

40

$50M

20

$1.7M

$0.9M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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G R E AT E R C A R M E L

AVERAGE SELLING PRICE

Market Update

C

armel experienced a healthy Q2 with 28 home sales and just under $57M in total sales volume. That sales volume is well ahead of the same quarter last year and very close to the volume in Q1 of this year. Average sale price in the area has declined but this is a product fewer high priced homes trading in the quarter. Overall demand remains high and with only 17 homes on the market at the end of the quarter, we are continuing to see an increase in home values.

12.9% vs Q1 2021 52% vs Q2 2020 SALES VOLUME

<$1M | 7 $1M-2M | 10 $2M-3M | 7 $3M-5M | 3 $5M+ | 1

$56.9M 2% vs Q1 2021

228% vs Q2 2020

4% SALES BY SEGMENT

$2,034,134

DAYS ON MARKET

11% 25% 36%

31 46% vs Q1 2021

55% vs Q2 2020

25% UNITS SOLD

28

12% vs Q1 2021

115% vs Q2 2020

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Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Greater Carmel

Days on Market*

Average vs Median Sales Price $2.4M

80

$1.8M

60

$1.2M

40

$0.6M

20

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

Q2 2021 MARKET REPORT

The areas outside of Carmel-by-the Sea & Carmel Point

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$70M

40

$2.4M

$53M

30

$1.8M

$35M

20

$18M

10

$1.2M

$0.6M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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C A R M E L VA L L E Y

AVERAGE SELLING PRICE

Market Update

C

armel Valley has now recorded 4 quarters of very healthy sales volume. A total of 330 homes have sold in the market in the trailing 12 months. This is well ahead of annual sales record for the area. 2020 saw an annual record sales level of 253 home sales. There were 87 sales in Q2 contributing to a record quarterly volume level of $161M. This is a very positive statement demonstrating the strength of the Carmel Valley Market even with inventory levels down considerably.

9% SALES BY SEGMENT <$1M | 22 $1M-2M | 38 $2M-3M | 14 $3M-5M | 8 $5M+ | 5

$1,858,162 9.4% vs Q1 2021

41.7% vs Q2 2020 SALES VOLUME

$161.6M 39% vs Q1 2021

252% vs Q2 2020

6%

DAYS ON MARKET

58 14% vs Q1 2021

2% vs Q2 2020

16% 25% 44%

UNITS SOLD

87

26% vs Q1 2021

142% vs Q2 2020

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Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Q2 2021 MARKET REPORT

Carmel Valley

Days on Market*

Average vs Median Sales Price $1.9M

60

$1.4M

55

$1.0M

50

$0.5M

45

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$180M

100

$1.9M

$135M

75

$1.4M

$90M

50

$45M

25

$1.0M

$0.5M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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P E B B L E B E AC H

AVERAGE SELLING PRICE

Market Update

P

ebble Beach had another very strong quarter with 44 home sales and total volume of $205M. This is the exact same number of sales as Q1 but with more higher priced homes trading total sales dollar volume increased in Q2 over Q1 by approximately 10%. Average sale price trading hit a new high at $4,672,897. This is a result of 25 homes over $3M trading in the quarter, 16 of which were over $5M as well. With several new higher priced homes in escrow at the beginning of Q3, we expect the strength in this market to continue.

SALES BY SEGMENT <$1M | 8 $1M-2M | 9 $2M-3M | 2 $3M-5M | 9 $5M+ | 16

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20% 18%

$4,672,897 10% vs Q1 2021

23.5% vs Q2 2020 SALES VOLUME

$205.6M 10% vs Q1 2021

172% vs Q2 2020

5%

DAYS ON MARKET

25% vs Q1 2021

52% vs Q2 2020

20% 36%

50

UNITS SOLD

44 no change vs Q1 2021 120% vs Q2 2020

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Q2 2021 MARKET REPORT

Pebble Beach Average vs Median Sales Price

Days on Market*

$5.0M

110

$3.8M

82.5

$2.5M

55

$1.3M

27.5

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$220M

60

$5.0M

$165M

45

$3.8M

$110M

30

$55M

15

$2.5M

$1.3M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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CARMEL HIGHLANDS

AVERAGE SELLING PRICE

Market Update

F

or the 10 years leading up to Covid (2020), The Carmel Highlands Market averaged 13.7 home sales per year. Last year that number increased to 54 for the year 2020. This quarter there were 15 transactions, more in a single quarter than we averaged for the 10 years prior to Covid. This confirmed the recent surge we are seeing in demand for this beautiful community. Total sales volume of $63M is second highest quarterly volume behind Q3 of last year. Average sale price is strong at $4.2M and inventory levels are a bit stronger than other markets with 24 homes currently listed.

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69.5% vs Q1 2021 19% vs Q2 2020 SALES VOLUME

$63.5M

111.9% vs Q1 2021 143% vs Q2 2020

DAYS ON MARKET

7% 27%

132 32% vs Q1 2021

33%

SALES BY SEGMENT <$1M | 3 $1M-2M | 2 $2M-3M | 4 $3M-5M | 1 $5M+ | 5

$4,239,412

2% vs Q2 2020

20% 13%

UNITS SOLD

15

25% vs Q1 2021

200% vs Q2 2020 Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Carmel Highlands, Big Sur & South Coast

Q2 2021 MARKET REPORT

Average vs Median Sales Price

Days on Market*

$7.0M

140

$5.3M

105

$3.5M

70

$1.8M

35

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$90M

30

$7.0M

$68M

22.5

$5.3M

$45M

15

$23M

7.5

$3.5M

$1.8M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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MONTEREY

AVERAGE SELLING PRICE

Market Update

T

he Monterey Market set a record for quarterly sales volume in Q2 with $127M in transaction volume. There were 105 sales in the quarter and 48% were over $1M. This increase in the number of higher priced homes contributed to an increase in average sale price to $1,215,160. This is the second highest quarterly average sale price the market has seen. Inventory continues to be the biggest challenge in this market with only 40 homes currently listed for sale compared to 73 at this time last year. Given the strong demand for less product we expect values to continue to increase.

24.6% vs Q1 2021

5.85% vs Q2 2020 SALES VOLUME

<$1M | 55 $1M-2M | 36 $2M-3M | 8 $3M-5M | 6 $5M+ | 0

16

$127.5M 51% vs Q1 2021

160% vs Q2 2020

8% SALES BY SEGMENT

$1,215,160

6%

DAYS ON MARKET

21 36% vs Q1 2021

64% vs Q2 2020

34% 52%

UNITS SOLD

105

21% vs Q1 2021

176% vs Q2 2020 Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Q2 2021 MARKET REPORT

Monterey

Days on Market*

Average vs Median Sales Price $1.3M

60

$1.0M

45

$0.7M

30

$0.3M

15

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$130M

110

$1.3M

$98M

82.5

$1.0M

$65M

55

$33M

27.5

$0.7M

$0.3M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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PAC I F I C G R OV E

AVERAGE SELLING PRICE

Market Update

P

acific Grove experienced very strong sales activity with 62 homes trading in Q2. That number compares to 53 trading in Q1 of this year and only 30 trading in this same quarter last year. Total sales volume in PG was $86M which is the second highest quarterly result in the last 6 quarters, just slightly behind Q3 of last year. Demand for PG continues to be very strong and the number of homes for sale sits at 25, compared to 49 in the same quarter last year.

10.7% vs Q1 2021

44.5% vs Q2 2020 SALES VOLUME

$86.8M 4% vs Q1 2021

199% vs Q2 2020

2%

DAYS ON MARKET

13%

SALES BY SEGMENT <$1M | 21 $1M-2M | 32 $2M-3M | 8 $3M-5M | 1 $5M+ | 0

$1,401,548

22 45% vs Q1 2021

47% vs Q2 2020

52%

34% UNITS SOLD

62

17% vs Q1 2021

107% vs Q2 2020

18

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com


Q2 2021 MARKET REPORT

Pacific Grove Average vs Median Sales Price

Days on Market*

$1.6M

50

$1.2M

37.5

$0.8M

25

$0.4M

12.5

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Average

* DOM count was suspended March 17th - May 16th, 2020 due to COVID-19

Median

Closed Sales by Quarter

Closed Sales Volume by Quarter

Average vs Median Sales Price by Quarter

$100M

80

$1.6M

$75M

60

$1.2M

$50M

40

$25M

20

$0.8M

$0.4M

Q1

Q1

Q2

2020

Q3

Q4

2021

Q1

Q2

2020

Q3

Q4

2021

Q2

2020 Average 2021 Average

Q3

Q4

2020 Median 2021 Median

Dolores South of Seventh ■ P.O. Drawer C Carmel-by-the-Sea, California 93921 831.622.1000 ■ CarmelRealtyCompany.com

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Kim DiBenedetto REALTOR® | DRE#01278679

831.601.9559

Kim@CarmelRealtyCompany.com www.KimNegotiatesHomes.com

Dolores South of Seventh ■ P.O. Drawer C ■ Carmel-by-the-Sea, California 93921 | 831.622.1000 ■ CarmelRealtyCompany.com

A C or n e r s t on e i n Lu x u ry R e a l E s tat e f or O v e r O n e Hu n dr e d Ye a r s


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