Coastal Monterey County saw heavy rain and winds earlier this week, which affected Big Sur and Carmel Valley, closing Highway 1 south of Nepenthe on Monday. It caused rivers to flood, and downed trees and power lines across the county. Apparently, Big Sur absorbed 11-13 inches of rainfall from Friday to Sunday, while the rest of the Monterey Peninsula got about three inches of rain during the same period. In Pebble Beach the power went out on Sunday and some trees came down but considering the strength of the storm, we suffered minimal damage. Being prepared with flash lights, generators and wood is always a good idea. We have a lot of trees and most of our power lines are above ground so we accept the annual inconveniences. Our relaxed lifestyles and the natural beauty of the Peninsula far outweigh the challenges's!
Here’s the summary of Monterey Peninsula real estate activity reported on MLS for the past seven days:
· New listings – 29
· New escrows – 22
- Off Market - 22
· Closed sales – 24
· Largest sale - $3.8M in Carmel
· Inventory – 404
· Price reductions – 17
This week we had a net gain of 7 listings while sales and inventory remained flat. The largest sale was located on Jack’s Peak. It is a 4747 SF home that has spectacular views of the Monterey Bay. It’s nestled on 5 wooded acres and was designed by Dave Matthams, a very well-known Peninsula architect. It was on the market for 175 days and sold fairly quickly considering it’s unique features and location. 50% of this week’s sales were under $1 million. The majority were in Monterey and Salinas. 8 sales ranged between $1M-$2M. In Monterey County and Northern California, this price range continues to be the hot spot for sales. At our annual Coldwell Banker kick off meeting yesterday, the Regional Manager indicated that entry level properties continue to sell quickly but high end properties seem to be moving as well. She said that the Bay Area frenzy of 2015 and early 2016 has cooled and Buyers now have more choices. She seems optimistic about the year. From the lending perspective, our in-house lender predicts interest rates will climb to around 5% by year end and the next scheduled hike will be in March. None of us can predict the future but it’s good to hear what others are thinking. We’ll see what happens!
A YEAR IN REVIEW
This week I will summarize the 2016 Pebble Beach Market:
2014 2015 2016
# of Sales 128 128 125
Avg List Price $2,490,827 $2,242,531 $2,793,210
Avg Sales Price $2,310,491 $2,078,702 $2,570.119
Days on Market 114 102 111
Price per foot $657 $653 $725
Avg Square Feet 3035 2932 3077
Sales volume has been flat over the last 3 years. 2015 saw a dip in average sales price but 2016 showed a healthy increase. There were several large estate sales that contributed to the higher average price. 2 sold for over $18 million and the other 2 were over $12-$14 million. Properties under $2 million continue to dominate this market and we assume this trend will continue in the new year. Here some numbers for 2016:
18 properties $3-$4 million range
13 properties- $2-$3 million range
50 properties - $1-$2 million range
31 properties (homes & condos) – less than $1 million
NATIONAL REAL ESTATE NEWS
Millennial Buyers: We’ll Compromise
DAILY REAL ESTATE NEWS | January 12, 2017
Millennial first-time homeowners are showing more willingness than previous generations to complete do-it-yourself projects around the house or wait until they can afford to make the improvements they desire, a new survey by Better Homes & Gardens magazine shows. Fifty percent of those surveyed say that at move-in, their current home’s conditions require some degree of repair or remodeling.
They’re showing some compromise in their first home. Only 50 percent of first-time millennial homeowners say they are willing to spend top dollar to get exactly the features and quality they want in a home, the survey showed. “These first-time millennial homeowners are focused on building equity, not debt,” says Jill Waage, editorial director of Digital Content and Products at Better Homes & Gardens. “They are strong believers in being able to afford their dreams as they achieve them and not over-stretch themselves.
”Eighty-five percent of first-time millennial homeowners say they view homeownership as a sound investment. Their housing wish-list is for a mid-sized home (about 2,000 square feet) with a renovated kitchen and bathroom as well as a deck or patio space. The DIY projects that landed the highest on their to-do lists are installing light fixtures and tile and painting walls, the survey showed.
“Millennials and millennial ‘firsts’ [first-time homeowners] are paving their own paths in homeownership based on their own budgets, timeline and needs,” Waage says. “These ‘firsts’ are replacing big-budget homes and expensive renovations with patience, frugalness and practicality.
”Source: “Millennials Patient, Thrifty When It Comes to Homeownership,” RISMedia (Jan. 11, 2017
I welcome your feedback and I hope you find the information helpful.
Have a great weekend