The Carmel Highlands real estate market is stuck in neutral. There is a large and growing disconnect between the real estate values as perceived by buyers and sellers and even with an offer in hand it is a monumental task to bring the buyer and seller together. The Highlands marketplace has historically moved at a slower pace, even in good markets, especially when compared to Carmel and certain areas of Pebble Beach. This is partly due to the Highlands being a “discretionary” market, buyers who don’t really need to buy and sellers who aren’t motivated to sell. It is hoped in 2012 that both buyers and sellers will be able to close the gap, because they can’t do it alone.
Bottom line, the Carmel Highlands marketplace is experiencing a lack of demand with few buyers in the high end luxury area. This disconnect is apparent with only 2 sales in 2011 for over $2,000,000, yet of the 24 current active listings, 10 properties are being offered for over $3,000,000. Until luxury high end buyers return to the market, sellers will be under pressure to make concessions in order to make a sale. This price pressure has been part of the severe real estate cycle that started in 2005 and has not yet finished its downturn. It is hoped that 2012 will create a better economy and psychology that brings a balance to the playing field.
For a complete analysis of trends and sales see the Carmel Highlands Market Action Report – December 2011 and the Carmel Highlands Single Family Sales 2011
For a comlpete