The first quarter of 2014 saw Carmel and Pebble Beach sales holding steady, rising from Q4 in 2013 but generally matching the annualized pace of last year in most brackets. Couple of relevant specific patterns worth noting:
- -67% of the closed (36) and pending (14) sales were below $2M, extending the relative pattern of demand at the lower brackets we’ve seen for the past two years; our sense is that as long as the cost of capital remains at or near these historically low levels this pattern will continue.
- -We did see two closed sales above $8M: the Eastwood vacant lot on the water that closed at $9M and the Chappellet estate also on the water where we represented the buyers, which closed after 10 years on the market at $16.5M.
- -There were zero sales of homes between $4.7M and $16.5M and none are in escrow between $3M-$12.5M. The last sale between $6M-$8M was in May of 2013. The sluggishness in this bracket is worth watching going forward.
- -Supplies are tight in both the Golden Rectangle and Carmel Point, with only 6 properties available under $2M. The Point actually beat the Rectangle last quarter – something that never happened last year. Carmel Point is hot.
- -The top of the Golden Rectangle went to sleep last quarter, with zero closed or pending sales; there are only 5 on the market above $4M so supply/demand there is not out of balance despite the slowing.
- -On The Point there were 14 closed and pending sales last quarter, and there are only 14 available on the market – that’s an incredibly tight ratio of supply relative to demand velocity.
Here’s a link to the full market report. If you have any questions or would like additional detail, feel free to contact us.
Mike, Lynn & Jess.