In our recent May 3 Carmel Update we discussed the improving market YTD over the same period in 2010. Carmel Sales YTD April 30 2011 We found that in 2011 there have been 72 closed sales in the first 4 months compared with 46 sales the prior year. Carmel Sales YTD April 30, 2010 In this update we are going to take a closer look at these statistics and reveal patterns and nuances that will help buyers and sellers in their understanding and decision making in the Carmel market.
- Of the 72 sales in the first 4 months, 22 properties did not require a price reduction. Carmel Solds – No Price Reductions
- When added to the 15 sales requiring only one price reduction, this comprises 51% of the market.
Comment – Sellers are now pricing their homes much closer to current realistic values. It also indicates a more stable level of prices and a sign that we are very close, if not at the bottom in the high demand areas of Carmel.
- 18 of the 22 sales without a price reduction were located in the “high demand” areas, South of Ocean Avenue in the “Golden Rectangle” and on Carmel Point.
Comment – Buyers appear to be saying that in the “high demand’ areas we are near or at the bottom of the downturn and they are not waiting for further Seller price reductions.
- 11 of the 72 sales taking place in the first 4 months required 4 or more price reductions to effect a sale. Carmel Solds – 4+ Price Reductions
Comment – 10 of these sales were outside the “high demand” areas of Carmel. These locations are far from the Village and Beach and are not considered “walk to town” locations.
- Of the 22 sales without a price reduction, the median Sales to Listing per cent was 93%. 7 Of these sales were 97% and above with 2 sales at the Listing price.
- The median DOM (days on the market) for these sales in the high demand areas was 35.
Comment – The sale to listing percentage and DOM (days on market) confirm that the Carmel market is showing strength in at least the high demand locations.
Final Thoughts – It is very difficult to predict and forcast the turning of a specific market. Typically we need to look backwards for 4 – 6 months to see if the market has formed a bottom. The above statistics give us good clues and insights that the data is very indicative of a change. As many of my buyers are saying: “We may not be quite there, but we believe it is close enough to go into the market and negotiate a purchase.”