The weather is supposed to climb into the mid 60’s and we’ve been told the sun will be shining all weekend. It’s a great opportunity to get out and take a hike or head down the Big Sur Coast. I am sure the views will be spectacular! The 7th ANNUAL WHALEFEST MONTEREY will be held at and around Old Fisherman’s Wharf, in Monterey this weekend. They will be celebrating the migration of the gray whales and providing information on how we can all protect the Monterey Bay National Marine Sanctuary. Weather permitting, whale watching tours, fishing, sailing and glass bottom boats for a fee) so get out there and enjoy!
MARKET STATISTICS
Here’s the summary of Monterey Peninsula real estate activity reported on MLS for the past seven days:
New listings – 33
Off Market - 7
New escrows – 22
Closed sales – 18
Largest sale - $1.75M in Carmel
Inventory – 420
Price reductions – 33
New listings remained strong this week although down from last week’s surge of 48. Inventory dropped slightly and we continue to see a substantial amount of reductions. Price changes seemed to be spread evenly throughout the Peninsula. The majority of sales this week were priced below $1 million. Only 27% sold over $1 million. At our Coldwell meeting Friday morning, an economist discussed the real estate market in Northern California. She forecasts that entry level homes (of course, entry level in Silicon Valley might mean $1.5 million – so it’s all relative) will continue to dominant the market and she discussed some interesting pricing trends. Price higher in the entry level market but be careful about pricing aggressively when it comes to the medium and upper markets. It’s all about supply and demand and right now buyers in the upper 2 tiers aren’t willing to pay top dollar for their homes. Since this is a secondary market, buyers have the luxury of time and money. Some good advice I think!
A Year in Review:
City Focus:
This week I will summarize the Carmel market:
CARMEL
2014 2015 2016
# of Sales 335 347 324
Avg List Price $1,470,241 $1,588,344 $1,659,450
Avg Sales Price $1,385,448 $1,508,,037 $1,568,416
Days on Market 98 93 76
Price per foot $654 $667 $776
Avg Square Feet 2108 2139 2073
2016 saw slight declines in units sold but there are 2 notables for 2016. Average sales price increased by 13% over the last 2 years and price per foot jumped by 18%. Average sales price increased by $182,968 from 2014-2016. I was a little surprised by the drop in days on market but that’s good news for sellers and an indication that when the house is priced well, it can sell in less than 3 months.. Things are looking good!.
NATIONAL REAL ESTATE NEWS:
Open Floor Plan Still Popular
DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 18, 2017
Open floor plans continue to reign.
Builders:
84% of builders say that in the typical single-family home they build, the kitchen and family room arrangement is at least partially open. 54% of builders say it’s completely open, according to responses from a September 2016 National Association of Home Builders/Wells Fargo Housing Market Index. “Completely open” essentially means the two areas are combined into the same room. “Partially open’ signifies areas separated by a partial wall, arch, counter, or something less than a full wall
Buyers:
70% of recent and prospective home buyers say they prefer a home with either a completely or partially open kitchen-family room arrangement. 32% of buyers say they prefer the arrangement completely open, according to an NAHB survey. Only 16% of buyers say they want the kitchen and family rooms in separate areas of the house
Existing Home Owners:
As demand continues to increase for open floor plans, homeowners of existing-homes are also looking to open up their kitchen and family room areas. Professional remodelers report that 40% of their projects involved making the floor plan more open by removing interior walls, pillars, arches, etc., according to first quarter of 2016 data in the Remodeling Market Index.Source: “Builders Satisfy Demand for Open Floor Plans,” National Association of Home Builders’ Eye on Housing blog (Jan. 11, 2017)
I welcome your feedback and I hope you find the information helpful.
THANK YOU!
Have a great weekend
Debora