Recently we reported in our Heinrich Team Blog that there were 18 Carmel properties under contract during the last 30 days. Early signs of a turning point? Maybe, maybe not. Clearly there are more buyers who feel we are close enough to a bottom and are willing to commit to a Carmel purchase. Others remain on the sidelines waiting for a more compelling indication of where we are in the market cycle.
Whatever your own analysis tells you, this appears to be a market willing to provide evidence to fit just about everybody’s crystal ball. The following six Carmel sales took place in early 2009 and will be helpful as you make your own judgments. Or it may show that in a marketplace as small as Carmel, each individual home has its own location-specific turning point.
Sale # 1: On San Antonio, 2 homes NW of 8th Street (Please remember Carmel – By – the -Sea has no street addresses. All residents go to the local Post Office for their mail.) Known as “Ivy by the Sea” this 78 year old 4 bedroom, 3.5 bath, 3100 square foot home exuded charm, formal touches, crown mouldings and a spacious master suite. French doors open to stone terraces and ocean views beyond. Listed for $5,995,000, sold on Jan 12, 2009 for $5,433,863. On the market 63 days.
Comments: Who said the market was slow? This is an example of the “right house, right now” buyer. Concerns over the economy or headlines were trumped by the exquisite home in a superb Carmel location.
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Sale # 2. On San Antonio at 10th Avenue, Southeast Corner. New construction 2,400 square feet, 4 bedroom, 3.5 bath with large master suite, good finishes, oak plank floors. This oversized corner lot allowed for a private courtyard with fireplace. Originally Listed for $5,800,000, sold on Feb 19, 2009 for $4,325,000. On the market 328 days.
Comments: This home was clearly overpriced for its square footage and location. The market required 5 price reductions to effect a sale. Also demonstrates the difference between being on the less favored east side of San Antonio compared to the west side with its better ocean views. This sale favored the patient buyer and argues for a slow approach.
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Sale # 3. On Lincoln St, 4th home Northeast of 13th. Terrific location in coveted “Golden Rectangle” south of Ocean Avenue. Fully remodeled, very high end materials, floor to ceiling stone fireplace, gourmet kitchen. Oversized lot and square footage. Listed for $3,495,000. Sold Jan 13, 2009 for $3,000,000. On the market 155 days.
Comments: Classic example of todays market pressure. This home sold April 11, 2008 for $3,295,000. The new owners invested $200,000 in upgrades and resold for $3,000,000 Jan 13, 2009. Very descriptive of the continuing downward trend.
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Sale # 4. San Antonio 3 Northeast of 10th. New construction, quality limestone and pecan finishes. Prime location with ocean views. Steps to the beach. 4000 sq ft lot with 1600 sq ft improvements. Originally Listed for $4,450,000. Sold Feb 10, 2009 for $2,750,000 after 3 major price reductions. On the market 200 days.
Comments: Initially overpriced and chased a declining market. Fell victim to being on the market too many days. Patient buyer watched and waited.
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Sale # 5. 2 Southeast of Carmelo and 13th. Super location, 2 blocks to beach. Complete remodel, very European, mahogany floors and cabinets, leaded glass windows. French doors to beautiful private gardens. Originally Listed for $3,345,000. After 3 price reductions sold on March 20, 2009 for $2,575,000. On the market 315 days.
Comments: This was a beautiful home but was not initially offered close enough to the market. Without ocean views, the high quality could not command an ocean view price. It might have worked in 2005, but not in 2009.
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Sale # 6. 3 Southwest Linclon & 11th. Excellent south of Ocean Avenue location. Only 5 years old, gourmet kitchen, limestone and maple surfaces. A highly desireable Craftsman style. Listed for $2,495,000. Sold on Feb 19, 2009 for $2,245,000. On the market for 183 days.
Comment: Good example of a well priced home. Owner was a local Realtor who understood the market.
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Summary: It is all about pricing and point of view. Those sellers who looked back to the peak of the market in 2005 overpriced their homes. Sellers that understood the current market and priced accordingly did just fine. So where are we? Is the market in Carmel turning around? My conclusion is yes, we are turning. It is uneven at this early stage, and being led by prime properties in the A+ locations, but we are going to see better days ahead. At this early stage, you just have to know where to look to see the changes.