Carmel Market Update

The median single family home price in Carmel this week is $1,762,500.

There are over 246 homes for sale in the larger Carmel area. The average “days on market” is 106 days. Of the 246 homes, 29 percent (71) have seen a reduction in price from their original list price.

(Click on the graph for a larger version)

The Market Action Index is a very cool 11. An Index below 30 indicates a buyer’s market. While well priced properties are being shown, there is a lack of urgency on the part of buyers. The general sense is that a property that a buyer considers today will still be available days or weeks from now.

Market Action Index

Home prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. This index is a tool for measuring the balance between supply and demand using a statistical function of the current rate of sale versus current inventory.
If the Market Action Index falls below 30 and remains there, prices are likely in for a downward correction.


(Click on the graphic for a larger version)

If the Index is above 30 it typically indicates a “Seller’s Market” because demand is high enough to quickly absorb available supply. And, prices will usually rise as a result.
Carmel is firmly in the “buyer’s market” range. This does not mean that well priced homes won’t sell for near asking, but buyer’s are looking for value and expecting sellers to negotiate.

Market by Quartiles
In markets like ours there can be variability between the upper and lower end of the market. For example, the first quartile, the most expensive properties in Carmel, have tended to hold up against a slight downward trend on the part of the other quartiles over the last couple of months. The most recent data indicates that this upper quartile may again begin trending with the other three.

Inventory in Carmel at the moment is split fairly evenly between each of the four quartiles. The most expensive properties, in Quartile 1, are spending a bit longer on the market. The most expensive properties tend to be larger and younger, no surprise there.