2017 Real Estate Sales Market Update
2017 brought more gains in real estate sales. Looking back to 2000, you can see most of the median sales in this area are either approaching or have exceeded their peaks in 2004/2005. More importantly, since prices rebounded off of their lows around 2011, we have seen average year-to-year increases around 5% a year, which is traditionally how real estate performs in the long term. Click on the graphs below to see larger versions. We have also seen rents reach all time highs in the area, but fortunately, they are not growing too fast. When home sales rise too fast, we start to worry about a bubble. When rents rise too fast, they can outpace salaries and drive out our local workforce, which is why we like to see modest gains.
While monthly income generation is important in the short term, it is also important to realize that with median home values in Monterey at $800,000, Pacific Grove at $900,000 and Carmel at $1,500,000, your home represents a very valuable investment. You need to ensure you protect that investment from physical damage and deterioration in the long term. Visit your property yearly and take action on our inspection recommendations. Talk to us if you have questions about what you can do to protect your investment. Sales at San Carlos Agency, Inc. have been strong this year, representing both seller and buyers. We had our second best year (behind 2014) since 2005. If you are interested in a more localized market analysis near your home or a home evaluation, we would be happy to help you.Email us at firstname.lastname@example.org or call us at 831-624-3846.