Buyers are tuned into their listing alerts as they wait for the next available property. They are often contacting their agent before their agent has a chance to review the new listings. Buyers are on pins and needles and needless to say...it's a challenging time if you are looking for a home. The Monterey Peninsula and most areas of California are experiencing the same shortages. We are about 44% behind May 2020 and it appears that this trend may continue into the summer months.
Along with low inventory, the lack of supply has caused prices to soar. In one year, measuring April 2020 to April 2021, average sales price went from $651,520 to $937,874, an increase of 143%! The competition is creating bidding wars with multiple offers, prices over asking and shorter days on market. Although interest rates remain low, many buyers are struggling with affordability issues as prices continue to soar. Loan contingencies are also knocking buyers out of the running and a contingency to sell another home will generally not be considered if there are multiple offers.
Here's a quick look at sales price to list price over the past 4 years:
April 2018 - 98% Sales Price to List Price
April 2019 - 97.7% Sales Price to List Price
April 2020 - 97.1% Sales Price to List Price
April 2021 - 100.1% Sales Price to List Price
As of today, Monterey County has a total of 333 properties for sale but month to date, there have already been 241 sales. Although listings have been strong week over week, properties are getting snatched up within 3-5 days. Agents are working hard to help their clients find a home but it's been a challenge and pricing is beginning to eliminate buyers from their desired neighborhoods.
It's going to be an interesting summer! Get ready for the wild ride!