Market Profile
There are currently 5 Pebble Beach properties in escrow ranging in list price from $1,745,000 to a vacant lot listed for $300,000. (Current Pebble Beach Pending Sales) There have been 13 closed sales in Pebble Beach since October 1, 2008, ranging in sale price from $3,150,000 to $675,000 (Pebble Beach Sales since 10/1/2008).
As with other Peninsula markets, Pebble Beach remains firmly at the “buyer’s” end of the spectrum with 207 average days on market.
While Pebble Beach is certainly healthier than many other high end markets, a telling statistic is the percent of listed properties that have seen a price decrease, discussed below.
Pebble Beach Market Action Index
The market remains firmly at the “Buyer’s end” of the Market Action Index (MAI). An MAI above 30 typically indicates a Seller’s market with prices tending to rise. An MAI below 30 implies a buyer’s market with a great deal of inventory, increased days on the market and weakening prices.
Pebble Beach Median Price
Pebble Beach has a range of housing stock (the lowest priced listing at the moment is a lot at $470,000 while the highest is a front line estate at $35,000,000). This fact makes Median price of limited value. One high end listing coming on, or going off, the market skews the numbers.
By breaking the market into quartiles the data is a little more enlightening.
Most of the large fluctuations in list price occur in the upper quartile. However, if you look only at the bottom half (quartile three and four) you see that the lowest priced homes have trended downward since 2007.
As properties come and go the characteristics of these four quartiles changes. Each quartile represents 25% of the market, so Quartile 1 and 2 combined is the upper half, while Quartile 3 and 4 is the lower half.
Tracking Pebble Beach Properties
The easiest way to track properties of interest is to use the Private Client MLS tool which lets you select properties of interest and track them through the sales cycle, including their final sales price. You can take a Quick Look at Pebble Beach listings on the MLS.
Insights
Buyers remain mostly on the sidelines. While many are concerned that the market may continue to settle, others are willing buyers but unable to secure credit. There has been a decided uptick in showings and interest since the first of January.
There is a sense in our markets that we will settle into the bottom of the value curve over the next few months and then remain relatively flat for some time.
Buyers who find the home that fits their needs should act, and present a well supported clean offer.
Sellers must do everything they can to make their home the “exceptional deal” for an “exceptional home.” Proper pricing, home staging, quality photography, and a strong internet presence are all imperative.
