Over the past ten years the Carmel real estate market has experienced severe up and downs in both annual unit sales and property valuations . The markets peaked in the fall of 2005 and have been on a downward track for the last 4 years. During the last year we have seen signs of some stability with the market giving both positive and negative signals. There continues to be good demand for well priced properties in the best Carmel locations, however, overpriced homes and offerings in lesser demand areas are sitting for long periods.
When compared to the year 2005, todays market is drastically changed. For example:
In 2005 there were 222 sales, compared to 145 in 2009
The average sales price in 2005 was $1,962,000, in 2009 $1,520,000
In 2005 there were 0 sales under $700,000, in 2009 there were 17
So where do we see the market going in 2010? Carmel will always be one of the most picturesque villages in the world. Buyers tend to return many times over the years and some of them finally “keep their promise” and purchase their dream. These buyers, however, are very discretionary; they do not need to purchase in Carmel.
Until we see aggregate demand increase, 2010 will look alot like 2009. Individual buyers who feel we are close to a turnaround will enter the market and negotiate aggressively, in effect creating a bottom for the individual property. We will continue to see mixed signals, good weeks followed by slow weeks, much as we see the mixed numbers in the National economy.