Carmel Foreclosed Home Sales in Last Six Months

At the moment there are only three foreclosed homes listed for sale, but over the last six months a total of ten bank owned homes have sold in Carmel, California.

On the high side there was a 4,226 square foot home at 24802 Eastfield Place that sold for $1,450,000 in March. The other extreme was a home on Canada Lane that sustained major damage when a tree fell through the roof. Some repairs had begun before the foreclosure but there was well over $50,000 worth of damage to be repaired….not including the desperately need improvements. It sold for $402,000 in February.

Two of the 10 homes were in Carmel-by-the-Sea versus the surrounding area of Monterey County known as Carmel. A property on Alta Avenue sold for $760,000 in February of this year. It was an updated but small home, 1,100 square feet. On Santa Rita a 1,553 square foot home, also updated, sold for $522,000 also in February.

In fact, of the 10 homes that have sold in the last six months, 2 sold in January, 4 in February, 1 in March, 2 in April, and 1 in June. There are three pending homes ranging from $979,200 at the high end down to $419,000.

The icons below will link you to a pdf of the 10 sold homes and 3 pending REO sales.

We do have foreclosed homes coming to market here in Carmel, California. While the number of foreclosures is well below the national average, they still have an impact on the market and are occasionally “deals” that are snapped up quickly once they are listed. Having said that, there are also times that investor (usually but not always a bank) lists a property at an unreasonable priced based on criteria other than market value and the home for sale will sit for months before it sells.

I often get calls from clients who have seen that a given property has received a notice of default and the foreclosure process has begun….asking if we can call the bank and make an offer. In an upcoming blog post I will review the steps in the process, but it is important to note that on average at the moment it takes 449 days for a property to progress through the foreclosure process from the 30 day late notice to listing of the foreclosed property. A property receiving notice today, that does not correct the situation or succeed with a short sale, won’t be on the market for over a year.

At the moment there are three foreclosed /REO homes on the market:

24936 Valley Wy, Carmel, CA 93923 (MLS # 81020038)

(all data current as of 7/30/2010)

Price	$2,030,000
Beds	4
Baths	2 full, 1 part baths
Home size	2,600 sq ft
Lot Size	10,400 sq ft

Bank owned a Saroyan home meticulously restored to perfection. Hand hewned pecan/walnut floor, custom sinks, top of the line appliances, three fireplaces situated on approximate 11,000 sq ft lot totally fenced and gated. Bonus guest studio, electric gates, professionally landscaped, stone patios, outdoor entertainment area and more!

Property Type(s): Residential, Detached Single Family

Last Updated	7/20/2010	Tract	n/a
Year Built	2007	Community	Hatton Fields
Garage Spaces	2.0	County	Monterey
Total Parking	2

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Bill O/ Dave T, Keller Williams Realty

(view all details for MLS # 81020038)

25519 Hacienda Pl, Carmel, CA 93923 (MLS # 81015727)

(all data current as of 7/30/2010)

Price	$957,700
Beds	3
Baths	2 full, 1 part baths
Home size	3,077 sq ft
Lot Size	87,120 sq ft

REDWOOD RANCH STYLE HOME BEHIND PRIVATE SECURITY GATE. OVERSIZED MASTER BEDROOM SUITE WITH FIREPLACE. SEPARATE OFFICE, GAMEROOM AND SOLARIUMS. 1.5 AC. LNSCAPED YEAR ROUND BLOOMS INTERIOR HAS EVERYTHING FROM OFFICE TO GAMEROOM TWO SOLARIUMS, MANY XTRAS. Views of Pt. Lobos & Jacks Peak. All fenced - 2 greenhouses. Office, bar, lots of decks, huge garage -super private setting!!

Property Type(s): Residential, Detached Single Family

Last Updated	7/15/2010	Tract	n/a
Year Built	1980	Community	Carmel Views / Rancho Rio Vista
Garage Spaces	2.0	County	Monterey
Total Parking	2

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Hodges/ProtoRobinson, Carmel Realty Company

(view all details for MLS # 81015727)

We're sorry, but we couldn't find MLS # 81022683 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

Selling a home in Carmel or Pebble Beach California can be challenging for a number of reasons, not least of which, this is a discretionary market:No one is ever forced to move here. There aren’t companies sending employees here or demanding that people live here to work for them. Many of the homes in our area are second homes.

How Most Home Buyers Approach Carmel and Pebble Beach

Proper pricing of a Carmel or Pebble Beach home is even more important because of the way most buyers enter the market. While it is dangerous to describe anyone as “typical” there are a few commonalities amongst the majority of buyers in our area.

• They have been here in the past on vacation, to visit a friend, attend a wedding etc.
• During their visit they started thinking about how great it would be to live here full time or own a second home.
• Maybe during that visit, or follow on visits, they picked up magazines, attended a few open houses and started to explore the different neighborhoods and communities.
• Eventually that process (which can take years) lead them to get more serious about looking for a home.
• And then on their next trip, they dedicated a day or two to work with a Realtor and tour homes with the intent of finding a home and making an offer.

This is where the seller’s pricing decision impacts the buyer.

• Very few buyers have the luxury to spend endless days looking at homes. They quickly (hopefully working with a Realtor…such as myself) reduce the list  to between five and ten homes to tour and consider.
• If a home is not correctly priced it won’t make the initial cut!
  • I cannot stress the importance of this fact. If a Realtor has a client in town for a day they will select properties where they expect there is a reasonable chance for a meeting of the minds between their buyer….and you.
  • If you are listed at well above market value and they have no way of knowing what offer you might entertain, what are the odds that they will spend their limited time showing your home to a prospective buyer?
  • Furthermore, even if a Realtor suggests an overpriced home many buyers will strike it from the list with the same logic as above. Why invest the energy in looking at a property that is priced well above what I am willing to pay for it?

There are lots of different ways to depict this reality graphically.

Half way up the pyramid is the “Market Value” line. As your price moves above this market value, you attract much smaller percentages of prospective buyers, greatly reducing the chance of a sale. Conversely, as you move below market value, you attract a larger percentage of potential buyers.

I realize this may sound theoretical but it is confirmed time and again in national pricing surveys and experience in our local market. My next post will look at a snapshot of sold homes in the last 60 days…..and you will see that there is a real world consequence of pricing in terms of days on market and ultimate sale price.

The water situation on the Monterey Peninsula (Carmel, Carmel Valley, Pacific Grove, Monterey, Pebble Beach) is about as clear as mud– so stay with me for a quick synopsis and an update.

• Cal-Am, the local water company, is violating a number of orders/laws/regulations by “over pumping” the Carmel River. Most of the restrictions have to do with protecting the Steel Head breading that occurs in the river.
• This over pumping/water shortage is the basis for the existence of the Monterey County Water Management District.
• This agency is a “super” agency that has authority above the authority of cities or the county when it comes to water usage.
  • For example, you can receive a permit from a city to install a third bathroom which is allowed under the zoning rules of a given property but NOT be allowed to add the bathroom because you have insufficient water credits (or fixture units) and the Water District won’t stamp the permit.
• To get more of an explanation of how the credit process works, visit www.malonehodges.com/water for an explanation.

So, in November a state wide agency known as the California State Water Resources Control Board issued a Cease and Desist Order that put extreme rationing on the table and ordered Cal Am to not install any new water meters or enlarge water meters for remodel projects.

This was clearly a catastrophe for anyone on the verge of getting a permit to build a home.

Immediately after the issuance of the order a Monterey County Judge issued a stay.

The State Resources board moved to transfer the case to a judge in another county in hopes of getting more sympathy. They succeeded. A Santa Clara county judge this week lifted the stay.

Effectively immediately Cal-Am is under orders to not install new meters. The rationing hasn’t kicked in because our water consumption so far this year is below the limits that trigger rationing.

If you have ever heard of “The Onion” a satirical online newspaper, this story could appear on their pages. Our area uses water well below the national average and well below the average water usage in California. We are extremely sensitive to water usage. There are a number of possible solutions to the water problem, including desalination plants and water reclamation projects. All of which require state approval….from the same state that is inflicting the cease and desist order but has dragged its feet on approving any of the solutions.

If you are considering buying a home in Carmel, Pebble Beach, Carmel Valley or the other peninsula communities and think you might want to add or modify your water fixtures please make sure you understand the water credit system during your contingency period. Request, and understand, what the water fixture report says about your property.

By the way, Pebble Beach has a bit of a unique side story. The Pebble Beach Company has been able to sell water credits from its “bank” for years meaning you could add that third bath, if your home was in Pebble Beach and you could afford to buy the credits. The original intent of the Water Resources Board was to include Pebble Beach but it was “carved out” so those purchased water credits are still valid (and valuable) for the time being at least.

Malone
malone@malonehodges.com
831-601-4740

Carmel has a surprisingly long list of restrictions for a town of only one square mile. Of course, it is that same list of restrictions that assures that Carmel remains a quaint village of small homes with more trees than full time residents.

Most lots in Carmel are 4,000 square feet. Not the house, the lot. These 40X100 lots are sometimes combined into 1 and half lots or double lots and in a couple of rare cases even triple size lots. City zoning does not allow for a guest house or “subordinate unit” on a 4,000 lot. If you are looking for a detached guest house you are going to be looking at larger lots….and with the larger lots comes more total square footage and a big step up in price.

In the 1980s it became clear to city hall that there were a great number of “duplex” homes that were in fact single family homes that had surreptitiously had second kitchens added. Some of these “subordinate units” had been added years before and some were being added as the topic was under discussion at city hall. The city was most concerned about the quality of these remodels as most were being done without permits.

The city elected to offer an amnesty. If residence would inform the city they had a subordinate unit and agree to bring it up to code, the city would allow them to keep the subordinate unit with a few restrictions.

In some cases, as with the house described below, a permitted addition was added to a home and a “utility area” would be transformed into a kitchen sometime months or years after the final inspection. These homes didn’t require any work to bring them up to code. At the other extreme were converted bedrooms with hotplates and overloaded circuits that needed quite a bit of work.

The primary restriction on these units is that only one unit can be rented at any time. As an owner you can live in one part of the home and rent the other. You can lend the “owner’s area” to friends, you can use it as a second home, but you cannot rent it if the remainder of the home is occupied by a tenant.

This property is located in the golden rectangle at 7th Avenue and Casanova. A couple of short blocks to restaurants and coffee shops and a few short blocks to the beach as well.

The east unit is two small bedrooms, a bath, a small office, and kitchen/livingroom. The newer portion of the home, to the west is a one bedroom, one bath, with its own kitchen. Both units have fireplaces and the west unit has a deck.

The property is listed for $1,295,000 and is easy to see. The owner lives in one unit and a tenant in the other. The tenant would love to stay. Give me a call if you would like more information or to arrange for a tour. Malone 831-601-4740

As we move into March there are 240 homesfor sale in the greater Carmel area (Carmel-by-the-Sea and the surrounding area), with properties taking about 180 days to sell…. These days, the number of sellers that “give up” is well above past years. This is reflected in the higher number of expired and canceled listings.

As the Carmel real estate market has softened I have seen buyers shift their attention from areas such as Carmel Woods or south east neighborhoods of Carmel-by-the-Sea to closer to town and into the “golden rectangle.” Properties are still selling in all neighborhoods but buyers are looking for the perfect home or the near perfect deal.

This Week’s SnapShot

 

Market Profile

Carmel remains firmly at the “buyer’s market” end of the spectrum. Since January first I have seen an uptick in buyer activity. The median list price has fallen $100,000 since the first of the year.  Successful sellers are those that adjust to the changing market by pricing their homes to differentiate themselves from the competition. If a home meets a buyer’s needs, they should submit a well prepared offer with supporting comparables.

The Market Action Index

The Market Action Index (MAI) measures available supply relative to the current level of demand. Index values above 30 indicate conditions favor sellers, below 30 favors buyers.

 

Median Price Per Square Foot

Homes in Carmel are not typically priced by “square foot” as there can be a 1,600 square foot home worth $900,000 a block from a home exactly the same size that might be worth $1,800,000. Nevertheless, median and average price per square foot are useful for tracking trends.

 

Looking at the market by Quartiles

To more accurately describe the sub-markets within Carmel, I report the median price in quartiles. The most expensive 25% of homes make up the first quartile, the next 25% the third quartile, the next 25% the third, and the least expensive 25% are the fourth quartile.

 

 

While the upper quartile is well off of what we saw in 2005, at the end of 2008 it was these higher priced properties that lifted the overall market.

 

Recent Sales

There were 25 closed escrows in Carmel in the last 3 months. They ranged in price from a low of $575,000 for the house on the corner of Highway 1 and Ocean Avenue to a high of $5,433,863 for a 3,100 square foot home on San Antonio Blvd and 8th Avenue. (Carmel Home Sales in the last 3 months) There are 20 Carmel properties currently in escrow. (Carmel Pending Home Sales)

Tracking Sales and Comparables

The easiest way to track comparables and properties of interest, is to use the Private Client MLS System to identify favorite properties. Once identified, the system will track and report on price changes, status changes, and the ultimate sale price when the property sells. You can also take a quick look at MLS listings for Carmel.

 

Carmel’s Schools

Anyone living in Carmel, or interested in moving here, with children knows Carmel School District is one of the best public school districts in the state of California. The district consists of three elementary schools (Carmel River Elementary, Tularcitos Elementary School and Captain Cooper Elementary School), one middle school and one high school.

Last night’s school board meeting was well attended and everyone acknowledged that the district is a victim of its own success. I have real estate clients from as far away as Atlanta interested in moving into the district, our schools being a major reason. As the price of homes has fallen, and rental rates have dropped as well, buyers and renters are moving into the district when possible. [Monterey school district spends $8,000 per student per year while Carmel spends $16,000.]

All three elementary schools are exceptional. Tularcitos was recently identified as a blue ribbon school and all three schools repeatedly score in the highest category used by a number of rating services. All California public schools undergo yearly testing. The Carmel district repeatedly scores well above the state average. Carmel CST scores.

The Issue

Carmel River has seen an unanticipated influx of new students in the last year which has prompted the district to consider a boundary change, adjustment in class sizes, a change in the school day, and other ideas.

Moving the boundary between Tularcitos and River was opposed by nearly everyone in attendance. Tularcitos is located in Carmel Valley Village (a 15 to 20 minute drive from the mouth of Carmel Valley) and any shift in the boundary would have  a major impact on the families affected.

The Solution Proposed by the District Administration

There was an audible sigh of relief when the administration stressed that they were not recommending a boundary change to the School board. It is still an option but there appeared to be near unanimity among the board, the administration, and certainly the audience that it was the least appealing option.

The administration is proposing allowing up to 25 students in each of the River School kindergarten classes (although the number will probably be less), up to 23 in the second grade (rather than 20) and up to 22 in third grade.  The cost of this “first scenario” supported by the administration could be as high as $60,000 in “penalties.”

These penalties are actually a reduction in “incentives” offered by the state for keeping the average number of students in each class in those grades under 20.44 students.

While the district would rather keep those penalty dollars, there was an acknowledgement that the other alternatives (boundary change, split day kindergarten, and several others) all have financial costs as well (impact on families, subsidizing busing etc.)

What Next

The administration is working with a demographer to better estimate future enrollment and the board will again discuss the issue at its next meeting.

An Audit

There is a belief that there are a number of students attending schools in the district that do not live in the district. It is difficult to say if this is an urban myth or a real problem. The district is proposing a student audit. Under the proposal, each family at River School will have to prove residency later this spring. That will be followed by random “house checks” in a couple of select grades to confirm residency. The district also intends to publicize a “tip line” for anonymous tips that someone may not be a resident of the district.

The district has modeled its audit on that used by the Palo Alto district.

Other info

I’ll post links to the board minutes once they are available.

The Monterey Herald Article about the Carmel School Board Meeting

California Department of Education STAR results for Carmel School District

Great Schools (a source of data on school districts)

The School District Web page

I recently put another Carmel home in escrow.  I had been working with these clients for quite some time-looking for their perfect house. As with many buyers, my clients were hesitant to make a move given the economic uncertainty and credit crisis. However, when they found their house, it was clear that the time to buy was now. We knew this because several months ago I set them up on my Private Client MLS system and together we have been watching the real estate market.

Every couple of weeks I would receive a phone call from them about a new listing or I would send them a note about a pocket listing that might have been of interest. Over the weeks we looked at half a dozen properties, none of which were a perfect match.

With each showing we refined our search criteria.  We explored different neighborhoods, and the pros and cons of Carmel vs Carmel Valley or Pebble Beach.

When we found interesting properties, they would save them their “favorites” folder and we would track them as the listings expired, sold, or had price reductions.

Two months ago we selected a property and made a well defended, clean offer, albeit well below the list price. We failed to “reach a meeting of the minds” with the seller and moved on.

Three weeks ago we identified a house that struck them as a nearly perfect match. Over a weekend we were able to put it in escrow, in competition with another buyer, and are now moving towards a close of escrow early next year.

The moral of the story? In this market be conservative as to price, take your time, learn the neighborhoods that most match your personality, but be open to finding a near perfect fit. When you find it, act.

Yes, houses are investments, but they are not interchangeable. If you find the house that speaks to you, make an educated and defensible offer. Owning a “good investment” is smart -living in the house you love is the real point of buying a home.

November is over. Certainly a slower real estate market on the Monterey Peninsula than in the months leading up to it.

Carmel Valley

Carmel Valley saw only two homes go into escrow. Then again, in November of 2007 there were only three home sales in Carmel Valley in November. The difference?

This year list the list price of Carmel Valley properties were $699,000 and $550,000. Last year: $2,850,000, $1,650,000 and $1,475,000.

The orange line represents Median Price 1 Year ago, the black line this year. The plateau we saw from May through mid September of this year has faultered in the last few weeks.

Carmel

Three homes went into escrow in Carmel in November. $599,000, 799,000, and $1,995,000. In November of 2007 nine properties went into escrow ranging in price from $1,190,000 to $8,999,999.

In the case of Carmel, list price was climbing a bit over the last couple of months. However, in November prices began trending downward at the same price levels as this time last year.

Pebble Beach

Six properties went into escrow in November of 2008 compared with 4 in the same month last year.

This years sales had list prices ranging from from 1.1 million to 3.775 million. Three of the six sales were listed above 3 million.

Two of the November 2007 sales were listed at just above 1 million and two where between 3.5 and 4 million.

As with all our markets, the listing or sale of a high priced home can “pull” the data one directon or another. This is especially true in Pebble Beach.

There are 150 properties for sale in Carmel, with properties taking over 180 days to sell….when they sell. These days, the number of sellers that “give up” is well above past years. This is reflected in the higher number of expired and canceled listings.

As the market has softened I have seen buyers shift their attention from areas such as Carmel Woods or south east neighborhoods of Carmel-by-the-Sea to closer to town and into the “golden rectangle.” Properties are still selling in all neighborhoods but buyers are looking for the perfect home or the near perfect deal. There is no particular sense of urgency on the part of buyers.

Market Profile

Carmel remains firmly at the “buyer’s market” end of the spectrum. We had an uptick in activity in late August and early September, unfortunately that has cooled with the ongoing economic crisis. There has been some indication as we move into mid November that buyers are returning to the market. (See the Market Action Index below)

The Market Action Index

The Market Action Index (MAI) measures available supply relative to the current level of demand. Index values above 30 indicate conditions favor sellers, below 30 favors buyers.

I predict we will see an improvement in the Market Action Index, and a reduction in inventory as we move towards the holidays. While I hope to see an increase in sales, much of the improvement will be a result of sellers pulling their homes off the market before the holidays.

Median Price Per Square Foot

Homes in Carmel are not generally priced by square foot, but it can be informative to track the square foot price as an indicator of the market’s trend.

Median Price by Quartile

To more accurately describe the sub-markets within Carmel, I report the median price in quartiles. The most expensive 25% of homes make up the first quartile, the next 25% the third quartile, the next 25% the third, and the least expensive 25% are the fourth quartile.

While the upper quartile is well off of what we saw in 2005, in the last few months it was these higher priced properties that have been lifting the overall market.

Recent Sales

There were seven properties that closed escrow in Carmel since the 10th of October ranging in sale price from a low of $815,000 on Upper Trail to a high of $2,700,000 on Camino Real. A PDf of Carmel Solds is here:

Carmel Solds.

Carmel Solds from July through October.

Tracking Sales and Comparables

The easiest way to track comparables and properties of interest, is to use the Private Client MLS System to identify favorite properties. Once identified, the system will track and report on price changes, status changes, and the ultimate sale price when the property sells.