Price Reductions in Monterey County: What My 2024 Study Found
When a luxury home here cuts its price, what usually happens next? In 2024 I went through the sales data to find out. I looked at over 100 single-family homes in Monterey County, priced around $2 million and up, that sold after at least one price cut. Here’s what the numbers showed, and what I’d take from them as a buyer or a seller.
Study published June 2024. Data: MLSListings Inc., single-family homes sold in Monterey County, June 2023 to June 2024. For newer numbers, see my 2026 update, The Price You Pay for Waiting.
The short answer
One price cut was rarely the end of it. Most of these homes were cut again, and nearly all of them sold for less than their final asking price.
- 58%had two or more price cuts (42% had just one)
- 2 in 3sold with no further cut when the first cut was 10% or more (11 of 17)
- ~93%needed another cut when the first cut was 3% or less (13 of 14)
- 7of over 100 homes sold without a further drop in negotiation
- 5.46%average negotiated off the lowest asking price
Source: my analysis of MLSListings Inc. data, single-family homes sold in Monterey County, June 2023 to June 2024, priced around $2 million and up, each with at least one price cut. Published June 2024.
How I measured it
- SourceMLSListings Inc., the MLS that covers Monterey County
- Sales periodHomes sold June 2023 to June 2024
- AreaAll of Monterey County, not just the Monterey Peninsula. The list includes Carmel-by-the-Sea, Pebble Beach and Carmel Valley, plus homes elsewhere in the county, such as Moss Landing.
- Which homes228 single-family homes in the county sold after at least one price cut. I studied the over 100 of them priced around $2 million and up.
- Price rangeAround $2 million up to an original asking price of $18,500,000
- “Further negotiation”The gap between the last asking price and the final sale price
- First publishedMy newsletter, June 2024 (week of June 10 to 16)
One cut is rarely the last
Of all the homes I studied, 58% had two or more price reductions, and 42% had just one. So once a price cut happens, a second one is more likely than not. A one-and-done reduction was the exception.
That doesn’t mean a cut is a bad sign about the house. Prices get adjusted for plenty of reasons: the wider economy shifts, similar homes come on the market, the first price was too high, the seller needs to move on a deadline, or the feedback says a lower price would sell it faster.
Big cuts vs. small cuts
The size of the first cut told me a lot about what came next.
About two in three of these homes (11 of 17) sold without another price cut.
About 93% of these homes (13 of 14) needed another cut before they sold. Small 2 to 3% cuts are often made to show up again on the big search sites, but on their own they rarely got the home sold.
Psychological price points
Cuts at or near a price barrier had more impact. Going from $2,050,000 to $1,950,000 was more effective than going from $2,195,000 to $2,075,000.
One likely reason: buyers search in price brackets. Dropping below a round number like $2 million puts a home in front of people who never saw it before. A similar-sized cut that stays in the same bracket mostly reaches the same buyers again.
How much room is left after a cut
Out of over 100 homes that lowered their price before selling, only 7 sold without a further drop during negotiation. On average, buyers negotiated another 5.46% off the lowest advertised price.
The highest-priced home in the study is a good example. It had just one price cut, and it still sold below the reduced price:
- Original asking price$18,500,000
- After one price cut$16,995,000
- Sold for$15,500,000
So if a home has already been reduced, I wouldn’t assume the new price is the floor.
What the 2026 numbers added
In July 2026 I ran a newer study for The Balog Report. It looked at MLS-listed residential sales above $2 million on the Monterey Peninsula over the prior 12 months, so it uses a narrower area and a different time frame than this one. It found that 1 in 3 of those sales needed a price reduction, homes with cuts sold an average of 17.7% below their original price, and buyers negotiated an additional 6.5% off the lowest advertised price. More than half of the homes that cut, 53%, needed more than one reduction. The pattern from 2024 held.
What this means for buyers and sellers
A cut is an opening, not a floor
When you see a price reduction, especially a big one, it may be a good time to make an offer. But don’t be afraid to negotiate further. In my data, most sellers came down even more from the reduced price. Ask how many times the price has changed, and base your number on recent sales, not the asking price. More on that in my negotiation guide and on my buyer page.
Price it right the first time
This data shows how much it matters to price correctly from the start. If you do need to cut, one meaningful cut of 10% or more was far more likely to end in a sale without further cuts than a small one. Before you list, get a home valuation, see my tips on selling faster, or visit my seller page.
Every home is different. For current numbers in your area, see my market pages for Carmel-by-the-Sea, the Carmel area, Pebble Beach and Carmel Valley.
Frequently asked questions
Does a price cut mean I should make an offer now?
It can be a good moment, especially after a big cut. In my 2024 study, a first cut of 10% or more meant about two in three homes (11 of 17) sold without another cut. But don’t assume the new price is the floor: buyers still negotiated an average of 5.46% off the lowest asking price.
How much below a reduced price do sellers accept?
In my study of single-family homes sold in Monterey County from June 2023 to June 2024, priced around $2 million and up, buyers negotiated an average of 5.46% off the lowest advertised price. Only 7 of the over 100 homes sold without a further drop. Every home is different, so the comps matter more than any average.
Why do some sellers cut their price by only 2 to 3%?
Often it’s to show up again on the big real estate search sites. In my data it rarely worked on its own: after a first cut of 3% or less, about 93% of homes (13 of 14) needed another cut before they sold.
How common are price reductions on the Monterey Peninsula?
In my 2024 study, 228 single-family homes sold in Monterey County between June 2023 and June 2024 had a price cut before they sold. My 2026 update, The Price You Pay for Waiting, found that 1 in 3 Monterey Peninsula sales above $2 million in the prior 12 months needed a price reduction.
Do psychological price points matter when cutting a price?
Yes. In my data, cuts at or near a price barrier had more impact. Going from $2,050,000 to $1,950,000 was more effective than going from $2,195,000 to $2,075,000.
Thinking about a price cut, or an offer?
I’m Jonathan Balog, a broker associate with Compass in Carmel-by-the-Sea. I’m happy to look at a specific home with you, whether you’re weighing a price change on your own listing or an offer on one that was just reduced. New research like this goes out first in The Balog Report.
