Condominiums FOURTH QUARTER 2005 & YEAR END REPORT First Published in The Carmel Pine Cone FEBRUARY 2006

Contents Market Barometer Median Sales Prices Gross Dollar Volume Sales by Quarter Days on Market

Another Solid Year
for Condo Sales

Fourth Quarter &
Year End Report

Sellers of condominiums racked up another good year in 2005. Gross dollar volume was a record $158,327,000, up five percent over 2004. This record volume was achieved with fewer sales than last year. There were 232 sales during the year as opposed to 247 last year. Higher selling prices accounted for the increase in dollar volume.

Gross dollar volume in the 4th quarter was strong. Sales topped $33,000,000, a healthy gain of 22% over 2004. Sales in Carmel Valley dominated the quarter with a volume topping $11,000,000.

Prices The fourth quarter figures demonstrate the impact of higher prices on dollar volume. There were 50 sales in the fourth quarter of 2004 as opposed to 46 in 2005. Gross dollar volume, on the other hand, increased by almost six million dollars with four fewer sales. The average sale price during the fourth quarter of 2004 was $542,620. Last year the quarterly average jumped to $717,565. Prices went up in all of the markets last year with the exception of Carmel Valley, which declined four percent, and the Pebble Beach over-one-million dollar category which fell seven percent. Monterey led the market in the year-to-year price increase category with a jump of 23%. Other towns with healthy increases were Marina, 20%, Seaside, 19%, and Pacific Grove, 18%. The five-year numbers show substantial differences in price performance from town to town. The five year appreciation champion is Marina with a gain of 145%. Two other markets surpassed the 100% gain figure: Salinas/Monterey Highway with 116% and Carmel Valley with 108%. Carmel logged a 93% increase in five years. At the low end was the Pebble Beach one-million-dollar-plus category which increased 22%. This category is now mis-labeled (we plan to change it for the next report) as all of the million-dollar-plus sales are now all over two million dollars. The condos that make up this category are all at Spanish Bay or the Lodge. When one considers the high basis, the 22% gain does not seem all that bad. Unit Sales There were 232 closed transactions on the Peninsula in 2005 as compared to 257 in 2004. That was a good performance. Unit sales have topped 200 for the past four years.

Barometer

The Barometer, which measures the percentage of listings in escrow, hit a four year low of 23% on January 1, 2006. Although we have not seen a number this low since 2002, we view a reading of over 20% as a signal of a good market. The market continues to be solid -- just not red hot as it was last July when the Barometer reading was 56%.

We took a spot check Barometer reading on January 31, and found it to be almost identical to January 1st. On the 31st we recorded a reading of 25%. There were 66 listings of which 17 were in escrow.

The condo market is not as competitive for sellers, at present, as is the single family home market. On January 31st there were only 49 units available on the Peninsula. We expect that condos will get off to a reasonably good start in the first quarter of 2006.

Annual Charts

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.

For a printable copy of this report please click Report

Please Call Us

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 condo 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 email us, call us at 831-626-2221 or 831-622-4642, or write us at PO Box 350, Carmel, CA 93921.