Pebble Beach Market Update

The median single family home price in Pebble Beach this week is $2,595,000. As with other Monterey Peninsula markets, Pebble Beach is firmly in the Buyer's zone. The increase in market activity we saw in the early summer seems to have faded.

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We are approaching the traditionally slower part of the year but I had hoped that we might have gone a bit longer without the fall off in activity.

Inventory
Inventory remains elevated. Some of the short decline in inventory is a function of sellers taking their homes off the market as we approach the holiday season.

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Market Action Index

The Market Action Index is 12 off a bit from past weeks. The MAI is a function of the number of homes on the market, the number of days on market, price reductions or increases, and number of sales. A score below 30 indicates a buyer's market.

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Again, the upward movement of the Index we saw in the summer has faded away and the index is in the low ranges that we saw in late 2006.

This doesn't mean that homes aren't selling or won't sell, but it does indicate that buyers are expecting sellers that are willing to negotiate and selling prices that are off from the numbers seen in the last couple of years.

Quartiles

Pebble Beach has such a wide range of price variability it can sometimes be useful to divide the market into quartiles (each quartile is 25% of the homes). Keep in mind that Pebble is already a relatively small market so when we look at segments the number of homes in each group can get small. If the number of homes is too few, one sale can radically skew the data.

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Nevertheless, it is interesting to note that earlier in the year Pebble's most expensive quartile was performing as well or better than the other 3 quartiles. In the last few months, the less expensive homes have been "hotter" while the more expensive estates are are not moving at the rate they were.

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Carmel Valley Median Prices 15 Sept 2007

Median Prices in Carmel Valley have indeed fallen over the last few months. This is partly a function of decreases in list price of properties currently on the market and from sellers recognizing that the market has changed and adjusting their initial asking price accordingly.

47% of the properties currently on the market in Carmel Valley have undergone a price decrease since coming on the market.