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Week of February 26th-March 3rd

Real Estate News

Two-Month Tells: Sales in Monterey County

This past week, we learned that the real (inflation-adjusted) U.S. home price growth in 2023 was 4%, matching the growth in 2022. All things considered, a real return of 4% for a tangible asset that can be enjoyed is pretty good, not to mention the additional tax benefits that come with owning real estate.

The year 2024 has been eventful so far. The stock market has reached new heights, the AI industry (#Nvidia) is booming, and record levels of government spending are making headlines. In the rental market, 55% of cities across the nation are posting rent growth and in the sales market, inventory is starting to be replenished across the country as we head closer to Spring.

But what's going on in Monterey County?

Compared to the first two months of 2023, overall sales volume is down in Monterey County by 9%, while active volume (inventory) is up by 8%. The $/SQFT is up slightly, by 2.5%, while the median sale price is virtually the same, and the median days to sell is down from 27 days to 24 days.

Looking solely at homes above $2MM, sales volume is down by 18% compared to the first two months of 2023, while active volume is up by 18%. The $/SQFT is virtually unchanged, while the median sales price is down slightly, to $2,979,000, from $3,075,000, and the median days to sell has grown in the beginning of 2024 relative to the beginning of 2023.

What stands out to you? One key observation is that despite an increase in homes available for sale, fewer homes are being sold. Buyers are more selective, and sellers are facing heightened competition. Historically, more inventory comes online in the Spring. If sales volume continues to fall behind the increase in inventory, buyers may soon find themselves spoiled for choice in a way they haven’t experienced in recent years. If this trend continues, it could exert downward pressure on prices.

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Jonathan Balog

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M: 831.747.0310
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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.

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