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A Quick Update on the Monterey Peninsula Housing Market - March 8, 2023

Here is a quick summary of the Monterey County Market:

  • Sales prices remain high but sellers seem to be taking note of longer days on market and less demand

  • Price reductions are occurring on homes that have been sitting for 3-4 weeks.

  • Average Sales price to list price is now below 100%. In February Sales Price to List Price Ratio was 97.7% for the County

  • Most buyers are no longer offering concessions and incentives when making an offer but if a house is in move-in condition, sellers still may see multiple offers. Location, views and updates play a big role in whether a house will generate interest

  • Average Days on Market are rising. Average days on market for February 2023 was 58

  • The current average interest rate for a 30-year fixed mortgage is 7.11%, rising 8 basis points since the same time last week but don't worry! The historic high of 18.45% was noted in 1981 (Bankrate)

  • Total mortgage application volume rose 7.4% for the week, according to the Mortgage Bankers Association. (CNBC)

  • Applications to refinance a home loan jumped 9% week to week but were 76% lower than the same week one year ago. (CNBC)

Break Down of Monterey County:

  • Currently, there are 320 residential homes for sale

  • There are 126 properties listed under $1 million

  • There are 5.1 months of inventory

  • Average Sales Price for February was $714,850

  • There were 149 sales for the month of February

  • Average Price per Foot for closed sales ended at $641 in February

Inventory remains low compared to pre-pandemic markets and overall sales volume is down. With the approach of spring, we anticipate an increase in new listings but a continued shortage in the local area. 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. It appears that the market will remain soft for the next few months but interest rates, the war and the stock market will determine where we go.

Data Source: MLS Inc, Bankrate, CNBC


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