2Q2022 Carmel Market Update
Carmel held steady this quarter with 51 sales, which is on par with it's 2Q averages. Demand continues to be clustered in the middle of the market with 16 sales from $3-4M and 16 from
$2-3M. We only saw 2 north of $6M as buyers are willing to pay a premium for a premium location but are beginning to push back on anything that seems overpriced and not perfect for their needs. Total investment dropped 9% from last quarter with a total of $160M. This is mostly due to just one sale above $8M (Xanadu, which closed for $13.2M after selling for $7.3M 2 years ago).
Northeast Carmel led the pack this quarter with 14 of the 50 sales, followed up by 9 in the Golden Rectangle and Hatton Fields, 7 in Northwest and Southeast Carmel, and just 5 on the Point. For those properties that are well priced, they sold in an average of 14 days for just over list price (1.4% above ask). However, pricing is particularly critical right now as the current active listings have been on the market for an average of 51 days and 11 have had a price reduction.
Despite the slowing, the median sales price climbed 11% this quarter to $2.78M, with a pronounced spike in the Golden Rectangle and Carmel Point. So far in 2022, the median sales price on Carmel Point is $4.6M, which is 10% higher than last year and 23% higher than 2020. The Golden Rectangle is flat from last year at $4.05M, but up 30% from 2020. Although both neighborhoods are fantastic, this is likely driven by the larger home sizes on Carmel Point overlapping with strong buyer demand for larger homes due to work from home flexibility and spending more time in larger groups down here.
All things considered, demand for a beach house in Carmel continues to be strong and we’re seeing prices - understandably - level off but hold steady. Given the tight inventory levels, I’d anticipate that to continue to be the case through the end of the year.