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The third quarter was another great performance by the condo market. Dollar volume for the quarter was terrific reaching forty-nine million six hundred twenty-three million dollars, up forty percent over last year. This forty percent gain was accomplished with only nine additional sales. Last year there were sixty-two transactions in the third quarter, this year seventy-one, a gain of fifteen percent.
The Market Barometer, which measures the percentage of listings in escrow, appears to indicate a slowing ahead. After nine consecutive quarters of Barometer readings over thirty-two percent and a robust second quarter reading of fifty-six percent, the Barometer fell to twenty-seven percent on October 1. The number of available active listings, i.e., those not under contract, grew to 49. This is the highest number since July 2003 when there were 81 available listings.
We took a new Barometer reading on November first to get a peek at the first month of the fourth quarter. On that date there were seventy-seven listings of which twenty-three were in escrow, a reading of thirty percent. Although the Barometer crept up, the number of available listings rose to fifty-four offering a bit more choice to buyers.
An increase in listings usually augurs a slowing market. Maybe buyers will catch a break in the months ahead.
Just like with single family houses, condominium prices keep pushing up. Perhaps inflation has been held in check in the economy at large, but certainly not in the local real estate market. Carmel is up twenty-two percent over the third quarter of last year and Monterey is plus sixteen percent. Carmel Valley, on the other hand, is up only four percent. All of the other markets are up too with the exception of Pacific Grove which is down.
The forty percent gain in dollar volume, achieved with only a fifteen percent increase in the number of transactions, shows vividly that there were widespread selling price increases throughout the entire market.
The market has been so good for so long that logic would seem to predict a slowing. Logic, however, is not a good guide to our real estate market. The third quarter was excellent, yet the Market Barometer seems to be indicating slower times ahead. We will have to wait to see if that develops or if we are only in a pause before another furious run up.
The charts are based in whole or in part on data supplied by the Monterey County Association of Realtors' Multiple Listing Service (MLS). Neither the Association nor the MLS guarantees or is responsible for their accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.
We have lived on the Monterey Peninsula since 1978 and in the heart of Carmel since 1986. We know the market and have deep experience assisting both buyers and sellers.
Many of our buyers are from out of town and before they act they need to gain an understanding of our local market. If you are an out-of-town buyer, you are extremely dependent on your agent for guidance. We are skilled at assisting you up the learning curve so that you can make sound decisions. The way we prosper is by putting our buyers into good, solid situations.
We know the market and would be happy to evaluate the value of your house at no charge. We know how to help you get ready for market to get the best price for your property. Selling a property is a cooperative effort between the seller and his or her agent. We will guide you on the team approach to success.
Please contact us via email, call us at 831-622-4642, or write us at PO Box 350, Carmel, CA 93921.
"You've gone so far out of your way to help us. We never have had such superb Realtors & are so glad we met you!"
-- Leslie Penley & Chris Johnston, El Paso & Carmel
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Paul Brocchini ~ (831) 601-1620
Mark Ryan ~ (831) 238-1498