A Quick Update on the Monterey Peninsula Housing Market - July 19, 2022

Here is a quick summary of our local market:

• In the area I monitor, inventory is beginning to incline but still tracking below pre-pandemic years. Currently inventory sits about 62.9% of June 2020 and 104% of June 2021.

• To highlight inventory in a few cities....Pacific Grove has tripled it's listings since April of this year. It now has 31 properties listed for sale. Marina and Seaside have also seen increases in listings over the past few months and they now have 23 and 28 active listings respectively. Pebble Beach has doubled it's listings since April and it now has 4 properties listed below the $2 million mark. Salinas continues to show the biggest increases month over month. There are now 116 properties listed for sale and 45 are currently in escrow.

• Our market is still experiencing multiple offer situations on certain properties that are fully remodeled but many homes are taking longer to go into contract and sellers seem more open to contingencies.

• Interest rates continue to climb and a .75 basis point increase is forecasted for the end of July. Freddie Mac's benchmark rate for a 30-year fixed rate mortgage is 5.51%.
  

Monterey County as a whole:

• There are 509 residential properties listed for sale

• Median Days on Market for active listings sits at 8

• Median List Price for the County is $869,000

• There were 255 sales for the month of June down from 2021 at 333 sales

• Average Price per Foot for closed sales ended at $685

• Median sales price for June 2022 was $889,000 compared to June 2021 at $789,000

• Months of inventory is on the incline - June 2021 - 2.7 months, June 2022 - 3.1 months.

• Sales volume has dropped year over year. June 2021 - $445,163,081, June 2022 - $345,467,928.

• Price reductions are occurring across most markets but sales price to list price statistics are still trending over 100% county-wide. In April, sales price to list price was 101.4% , June ended at 100.1%.

It remains a seller's market due to sustained low inventory but the market is beginning to change. Sales volume remains strong due to pricing but sales units and volume are down year over year. Inventory remains far below pre-pandemic levels but we are seeing small increases week over week. It is taking longer to sell most homes and there are less buyers bringing offers to the table. Sellers were used to multiple offers, no contingencies, over asking and quick sales but they are now finding that buyers have their limits.

Data Source: MLS Inc