What’s the Latest?

Week of October 9th - October 15th

Real Estate News

A driving force for Carmel-by-the-Sea

Carmel-by-the-Sea boasts an impressive count of nearly 200 centi-millionaires (with net worth exceeding $100 million) among its year-round and part-time residents, solidifying its status as one of the world's top luxury destinations. This reputation has stood the test of time, thanks to the exceptional blend of offerings here and the proximity to Silicon Valley's wealth hub. The scarcity of homes in Carmel-by-the-Sea keeps property values robust, making it one of the most vibrant real estate markets around.

Considering that only about 100-125 homes change hands each year in Carmel-by-the-Sea, with just a handful of those being newly-build homes, having a fresh or recently remodeled home up for grabs is a lucrative deal. Remember that newly built gem I spotlighted on Casanova Street a few weeks back? Well, it's already snatched up, boasting an impressive pending status at an asking price of nearly $4,000 per square foot.

As we glance at the broader economic landscape, the ongoing rollercoaster of mortgage rates and global tensions has many experts predicting a challenging 6-12 months ahead for the market. Nonetheless, Carmel-by-the-Sea tends to stay relatively shielded from these market shifts, owing to the consistent interest shown by wealthy buyers who recognize the enduring value this locale holds.

In other regions across the nation, home builders are rolling out enticing offers like rate buydowns, credits to buyers, and extra upgrades at no extra cost, rather than slashing their asking prices. Some buyers, however, are biding their time, waiting for rates to drop or prices to dip. Remembering the late 1970s when interest rates skyrocketed from 8% to 16% between 1978 and 1981, it might surprise you to learn that the median home price never experienced a big crash. Prices fell around 10-15% during this time when adjusted for inflation, which is consistent with what many other markets around the country have already experienced. Predicting where prices and rates will land in the next 6-12 months remains a daunting task.

Shifting our focus back to Carmel-by-the-Sea, the landscape remains largely unchanged, with no significant surge in new home construction or existing supply and certainly no extra coastline being magically conjured up. Coupled with consistent demand from capable buyers, I believe the market here will continue to be robust as we head into 2024.

Infographic courtesy of visualcapitalist.com

Worked with me in the past? Share your experience.

Leave a review

Jonathan Balog

DRE# 01980970
Broker
M: 831.747.0310
[email protected]

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

OUR WEEKLY UPDATE

What’s the Latest?

Property Tips and Tricks

Secrets for a high-end look

Real Estate News

A driving force for Carmel-by-the-Sea

Worked with me in the past? Share your experience.

Jonathan Balog

Stay Smart