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A Quick Update on the Monterey Peninsula Housing Market - August 31, 2023

Here is a quick summary of the Monterey County Market:

  • Sales prices remain historically high.

  • Price reductions are occurring on some homes that have been sitting for 3-4 weeks and multiple reductions may occur on homes that are sitting 2+ months.

  • Average Sales price to list price is now 98.8% for August.

  • Buyers don't seem to be in a hurry to make offers unless there is an exceptional move-in condition with views or the property is heavily discounted.

  • Verbal offers seem to be more common now. Buyers are testing the waters to see if the seller would be interested in considering lower than asking price. Location, views and updates play a big role in whether a house will generate interest

  • Average Days on Market continues to rise. Average days on market for Active Listings in August is 77 days.

  • The current National average interest rate for a 30-year fixed mortgage is 7.07% but remains low compared to the historic high of 18.45% was noted in 1981 (Bankrate)

  • Total mortgage application volume rose slightly this week according to the Mortgage Bankers Association.

  • Applications to refinance a home loan decreased 2.5% week to week. (MBA)

Break Down of Monterey County:

  • Currently, there are 406 residential homes listed for sale

  • There are 150 properties listed under $1 million

  • There are 46 properties listed over $5 million

  • There are 4.5 months of inventory

  • Average Sales Price is $1,288,357

  • There were 190 sales month-to-date for August

  • Average Price per Foot for closed sales ended at $714 month-to-date

Inventory remains low compared to pre-pandemic markets and overall sales volume is down from 2021 and early 2022. Car Week just ended and although we had lots of visitors to the area, cars were the focus, not houses. We did see a surge in listings in the luxury market but sales and new escrows were relatively low. Buyers seem to be in a "wait and see" mode and it is difficult to predict what properties are going to sell quickly. Higher interest rates play a role for both buyers and sellers. Sellers who need financing are hesitant to give up their low mortgage payments and on the flip side affordability for buyers has changed dramatically and many are currently priced out of the market.

Data Source: MLS Inc, Bankrate, Mortgage Bankers Association


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