Pacific Grove 2Q2022 Market Update
As we finish the second quarter, we are seeing buyers align price and value and learn how their buying power is different than it was 3 months ago. With interest rates steadily increasing, buyers are re-evaluating their price points, which is drawing buyers to the quaint town of Pacific Grove. The coastal cottages and Victorians are ranging from $1M-$6M, giving buyers lots of options to choose from.
Pacific Grove continued to see strong growth in 2Q22, with 46 houses sold compared to 1Q22, when 31 houses sold and almost double the 26 that we saw in 2Q21.
Like many smaller markets, we're seeing strong price appreciation in PG, up 40% from last year, coming in at $1.39M. We continue to see the trends of low days on market when priced competitively, low inventory and sales price closing higher than list price. Out of the 46 deals closed in 2Q, 36 of them closed at or above asking price. Areas of high sales volume were Forest Grove/Pine Avenue, with 24 houses sold. And the highest priced sale was in the Asilomar area, which went $450K over ask, closing at $3.3M. As we look ahead into the summer season, days on market is lengthening with active listings, giving buyers a chance to make educated decisions on the inventory available.
Currently, there are 25 active listings in the Pacific Grove area, and roughly 25% have had price adjustments. Pricing is going to be a very important piece of the puzzle as we see the market ‘normalize’. Sellers will need to be educated on where pricing is going and what buyers are willing to negotiate. And buyers will need to understand the changing market as well, keeping a close eye on inventory and days on market.
Fortunately, Pacific Grove is a destination location, with visitors coming to the area, popping into open houses, dining downtown and enjoying the local shops and coastal lifestyle. With the broad range of pricing available to the buyers, it will be interesting to follow the trends and watch the evolving demand in Pacific Grove.