While there was some slowing from the 4th quarter of 2012 (there was a noticeable lull in January), the Pebble Beach real estate market enjoyed a solid first quarter with 37 closed sales and 26 pending sales, inventory levels falling to historic lows and days-on-market compressing significantly. At quarter-end there were 73 properties on the market in Pebble; extrapolating the first quarter closed-sales absorption rate, this would bring the inventory down to a 6 month supply – the healthiest supply/demand ratio we’ve seen in many years. With only 14 homes listed under $1M and 18 closed in the first quarter alone, our forecasted extinction of under $1M inventory in Pebble is not far away. There remains softness and a supply imbalance in the $4-$8M bracket – sellers there will need to be focused on pricing to stimulate attention in that pack. Also noteworthy was our representation of the buyer of the $22.5M ocean front property in Pebble, the highest price seen in Pebble since 2005 – a good sign for the top of the market.
The Golden Rectangle and Carmel Point markets in Carmel saw slightly greater slowing from the 2012 4th quarter than Pebble with 13 closed sales vs. 24. The market remained hot in the $1M-$1.5M bracket, principally for well-located fixers, with 1 closed sale and virtually no inventory. There was also solid activity between $2.0M-$2.5M with 3 closed and 4 pending sales in that bracket. The $3M-$4M bracket saw 3 closed sales which was also very strong. Demand tapered north of $4M with 1 closed sale and one pending; the highest closed sale price in Carmel in the first quarter was $4.095M.
All and all, a very healthy start to the year. Worth noting that the pace has accelerated throughout the quarter, ending stronger than it started – the pending sales levels in both Pebble Beach and Carmel strong forward market indicators of the likely trend line.
Click here for the full 1Q13 Market Report
Mike, Lynn & Jessica