Where is the Carmel Valley Market Headed?

Super Bowl Sunday has past. The Olympics are over. Now it’s Real Estate Time! What does that mean for Carmel Valley?  Let’s take a look at some key factors:

  • carmel valleyYear over year appreciation in Carmel Valley (92130 zip code) stands at 15%.
  • Average market times are 32 days – down from 61 days.
  • The numbers of properties sold are up 7.4%.
  • Inventories are down.

Not only are inventories down, they are at a low that we haven’t seen since the 1990s. The mix of properties has also shifted.  Currently there are only 78 detached homes for sale in the 92130 zip code. Only ten are under $1,000,000, and only 23 are between $1,000,000 and $1,500,000.  This leaves 55 homes that are priced over $2,000,000.  High-end developments such as the Meadows Del Mar, Rancho Pacifica and Del Mar Mesa are selling at over $2,000,000.

What does that mean for people looking to purchase or sell in Carmel Valley?

We can’t predict the future, but if you look at markets such as San Francisco, Newport Beach and parts of Coastal Los Angeles – prices in San Diego look cheap. This is appealing to many people, especially entrepreneurs who can manage a business from a remote, sunny location . . . like Carmel Valley.

There’s no way to predict the future, but the past shows us there is usually a sharp growth in the markets in the early winter (February to Late April).  Inventory is typically low at these times as the market is flush with buyers relocating from other parts of the country.  Companies such as Qualcomm, Illumina, and Cyber Mitchell are growing quickly and import talent from other parts of the country.

Recent homes on the market have seen multiple offers, all from qualified buyers. This is a clear an indication of the current demand in the market place.

As the winter progresses will the trend of increased prices continue?  Will history repeat itself?  It seems like the current environment of low interest rates coupled with a lack of inventory point to a further appreciation in prices.  How long will it last?  Time will tell!

– Robert Wolf, Wolf Real Estate Group

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