COVID Monterey Peninsula Real Estate Market Update
I remember feeling a sense of uncertainty when Coronavirus began and thought this would be my first experience with a market shift as a real estate professional. I wasn’t alone – I spoke with many colleagues who had similar concerns, but also took comfort in knowing that our team has seen several recessions and persevered.
This pandemic caused many Realtors to lean on the guidance of renowned real estate economists to help us guide our clients with data, information, and projections. The economists we listened to had a very positive outlook understanding the reality we were facing, and anticipating real estate would be the asset class to turn to given the volatility of the stock market. This was in March, and the economists were not wrong. Shortly after, we noticed that while buyers had opportunities to cancel their escrows, many closed on their purchases. The luxury market, which many thought would slow way down, quickly became stronger than we have seen in years. Silicon Valley buyers were looking to escape the city and spend time in a quiet, private environment and the Monterey Peninsula was one of the main places they turned to. Clients who had been looking on and off for a few years suddenly were actively pursuing a purchase, and many sellers were receiving strong offers. We see some very motivated buyers who need to find a home, others selling and buying who noticed the timing is right to consider a transition with these great interest rates and high sale prices, and some looking for a second or third home to spend more time in our beautiful area. Despite jumbo financing conditions tightening up, we saw qualified buyers secure large loans, and we saw a substantial amount of cash transactions at various price points. In short, the Monterey Peninsula and Big Sur markets held very strong, and noticeably increased in overall activity. As Realtors we are grateful to be very busy, and we are thankful for our clients and friends for referring us and trusting us. The COVID protocols are recognized and understood as the new norm in the real estate community, and there are systems in place to ensure safety for buyers, sellers, and real estate professionals. Heading into summer, we see no signs of real estate movement slowing down, and we think interest rates will remain low to continue to stimulate the economy, which creates great opportunity for both buyers and sellers.