What a difference a month makes! January was our typically slow winter month, as I reported in my recent blog post, "Where is 2013 Headed?". February has painted quite a different picture. Suddenly, there appear to be more buyers competing over limited inventory and a feeling as if this is really the last chance to "get in" before our market heats up. The San Francisco Bay Area is practically overheating with in some cases 30 offers, over asking, etc. We typically lag behind that market and I would not characterize any of our neighborhoods as overactive. With that said, there is a sense of urgency that is beginning to brew among buyers.
Take a look at the chart below, showing the number of active properties per city and price point.
Carmel Pebble Beach Carmel Valley
$1M> 13 8 17
$1-2M 43 5 24
$2-3M 20 12 7
$3-4M 19 6 6
$4M+ 15 27 9
This chart illustrates the segments in which buyers can still lead the negiotations, but also shows where sellers are taking the driver's seat. The toughest area for buyers right now is under $1M in any location. Properties in this category are in highest demand and a seller that asked for $750K last year, may very well be in a position to increase his/her asking price simply due to the limited inventory in this segment. The other challenging place for buyers is Carmel-by-the-Sea. Carmel gets a high percentage of vacation home buyers who primarily want to walk to Carmel Beach and to the shops and dining in town. Within that limited geographic area, there are only 10 homes on the market between $1-$2M. But if buyers look outside of this area, the options increase substainally, as seen in the chart above.
It is also important to note that 43% of the 230 active properties have been on the market for 6 months or longer. The majority of our inventory is stale. The new inventory is exciting and sought after by weary buyers tired of hitting the open house weekend circuit.
- Recent Sale in Carmel Woods
What this also means, is that we'll see an increase in off-market sales, or homes that were never even listed on the Multiple Listing Service. You can even visit the Carmel Realty website for homes that are "discreetly available." As a buyer, it is more important now than ever, to align yourself with a realtor that has this inside knowledge. I can tell you about properties for sale that you won't find online in Pebble Beach, Carmel Valley's Sleepy Hollow community and Carmel's Hatton Fields, Carmel Hills and Golden Rectangle neighborhoods. And as a seller, welcome to the turnaround!