Pebble Beach 2Q2024

As our area transitioned from spring to summer, we saw the traditional rise in deal-flow throughout Pebble Beach – closing this quarter with 25 sales, more than doubling the total sales from the 1st quarter. Additionally, total investments for this quarter came in at $91.8M – more than tripling the total from 1Q. Interestingly, even as the rising deal flow absorbed some of the listings in 2Q, there was also a build-up in inventory, which climbed to the highest totals (42 active listings) in the past 4 years. Of the active listings, there are 9 offered above $10M, 5 listed between $5M-$10M, and the remainder (26) are asking below $5M. Also of note, the largest geographical concentration of listings is in the Central Pebble Beach area, which makes up for nearly half of all active listings. Overall, home values continued to climb upward in Pebble Beach, closing the quarter at an average of $2.8M – up 27% from the previous quarter. All three sub-markets (MPCC, Central Pebble and Upper Forest areas) made positive gains as steady demand outpaced supplies – especially for the lower priced homes. Condo sales aside, the entry ticket for owning a home in the coveted Pebble Beach community remains well above the $1M threshold and this trend has been holding steadily above $1.25M since Summer of ’23. So, who is purchasing homes in Pebble Beach right now? In review of the 2nd Quarter’s sales, 42% of buyers came from the Bay Area; 16% were located in the San Juaquin Valley; 16% from Southern CA; 11% were local residents and the remaining 15% came from Northern CA, Arizona and Texas. Another interesting stat is that the sales were evenly split between primary and secondary home buyers, which reinforced the trend over the past couple years that more buyers are seeking full-time residences in Pebble Beach. Looking ahead to the remainder of the summer selling season, there are currently 8 deals in escrow that are due to close in the 3rd quarter – all of which are listed below the $5M threshold. As mortgage rates show signs of dropping this year, we anticipate the lower price points in Pebble Beach to remain very competitive as loan-based buyers re-enter the marketplace.