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Rocketing
Prices Are The 1999 Real Estate Story
Fourth
Quarter and Year End Report
No one knows for sure when the Bohemian era ended in Carmel. We just know that no true Bohemian has been able to afford a place around here for years. It is unlikely that the impoverished poets and sages of our time could even afford a place in Seaside or Marina today, the last bastions of affordability on the Monterey Peninsula.
Although the date of the disappearance of our local Bohemians is clouded, we do know when the era of millionaires began. That is clearly marked, and it is 1999.
Ponder this. Thirty six percent , 25 out of 69, of the houses sold in Carmel during the fourth quarter of that golden year fetched over one million dollars. In Pebble Beach 40% of the properties sold surpassed the million dollar mark during the same period.
Although three of the ten markets, Del Rey Oaks, Marina and Seaside had no million
dollar sales during the quarter, 16.2% of the homes sold on the Peninsula during
the fourth quarter topped one million dollars . Home owners, be happy you do
not have to buy your own house! Million dollar houses are now the norm in the
tonier areas of our Peninsula.
1999 Price Gains - Monterey Tops the Charts
Median sales prices in Monterey reached $290,000 in 1995. Then they slipped backwards for a couple of years, and eked their way upwards to $300,000 in 1998. In 1999 Monterey made its price move: up 32.7% on the year. In the middle of 1999 we noted that Monterey was the lagging market, the only one where a buyer might find a "deal." That window of opportunity is closed, at least for the time being.
Leading the rest of the pack, Carmel Valley was up 23.7% on the year, Marina 23% and South Coast 22.7%.
Dollar Volume Jumps 21.5% -- Carmel Leads the Way
The dollar volume of transactions during the year was impressive. Carmel, the dollar volume leader, recorded $256,438,000 in sales during the year, a jump of 32.5% over the excellent numbers logged in 1998. Pebble Beach was second, Salinas Monterey Highway third, Monterey fourth and Pacific Grove fifth. Monterey again had the biggest percentage gain during the year jumping 40.2% above 1998 figures.
Gross dollar volume for the Monterey Peninsula for all of 1999 was $898,213,000, an increase of 21.5% over 1998.
The year 2000 is beginning with a low inventory of properties on the Monterey Peninsula.
In the ten Peninsula markets, the New Year began with only 432 listings. One hundred seventy-eight of those were in escrow leaving only 254 net listings available to buy. The market was already tight at the beginning of last year when there were only 368 net listings available. This years' figure is a 31% decline below last year's tight market.
Our Market Barometer, a measure of activity, shows the percentage of current listings that are in escrow. Carmel, for the first time, topped the barometer scale with 55 out of 105 listings in escrow, a reading of 52.38%. This is truly amazing. Carmel, as defined by the Multiple Listing Service, is a large area that in addition to Carmel-by-the-Sea includes Carmel Woods, Carmel Point, Hatton Fields, Carmel Mission, High Meadows, North and South Carmel Hills, Jack's Peak and Carmel Meadows. Normally the barometer reading is dragged down by the markets outside the village which do not sell as readily as the village proper.
That was not the case in late 1999 where properties moved off the market with alacrity in all areas.
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The end of the boom is not in sight. Although more properties should be coming on the market as we move into the year, it appears to us that the upward pressure on prices will continue. We have little growth potential and increasing numbers of affluent buyers desire our properties. The spurt in prices makes the Peninsula appear to be very pricey now. Down the road a bit, however, Year 2000 prices may appear like bargains just as 1995 prices look to us now. For those who can afford it, Monterey Peninsula real estate is still, in stock market terms, a strong buy. Please Call Us We have lived on the Monterey Peninsula since 1978 and in the heart of Carmel since 1986. We know the market, would be happy to evaluate the market value of your house at no charge or to answer your real estate questions. Please call. You can reach us day or night at (831) 624-1414. |