Local Market PercolatingAccording to the statistics, Monterey County is in a raging buyers' market. In reality, not quite! Although there is a lot of interest and pent-up demand and buyers making offers, sellers aren't budging much from their asking prices. Consequently, few deals are being struck, and, of those that are, a very high percentage are falling out of escrow. Title companies on the Peninsula are guesstimating that 30-50% are falling through.
With that in mind, please take these numbers with a grain of salt. These numbers reflect general trends and have little bearing on any particular home in any given neighborhood. For example; in markets like Salinas, there is quite a bit of negotiating and pricing movement. However, Salinas is a much different market from the peninsula cities such as; Carmel, Pacific Grove, Monterey and the others. The Monterey Peninsula's real estate market has been picking up steam again. When speaking for the county though, it truly depends on the area which as we know falls back once again on; location, location, location.
The median price for single-family, re-sale homes in Monterey County fell 1.1% from January. Year-over-year, the median price is down 6.1% from the record high set last February of $700,000.
Home sales were up 6.4% from January, off 20.8% year-over-year. Sales for the first two months of the year were the lowest since we've been keeping records: January 1997.
The inventory of single-family homes in Monterey County gained 4.1% from January, up 16.2% compared to last February.
On the bright side, unless you are a condo owner or a renter, the city of Monterey amended their general plan to encourage the conversion of existing apartments into condos. Currently, there are six or seven conversion projects in the planning process which will result in approximately 500-600 units coming to market within the next 24 months.
The sales price to list price ratio for homes bounced back from its anomalous number of last month: 95.2%.
The up-tick in sales pushed our Days of Inventory indicator down ten days to 467 days.My advice? For buyers, well-priced homes in the best school districts are selling quickly with multiple offers. Sellers aren't budging much on their asking price. Keep making offers.
For sellers, encourage offers and work with them. Yes, you're going to get low-balled. But, if you do manage to get into escrow, don't blow it there or your buyers will walk.