The Rising Cost of a Declining Market

Apr 20, 2011 — Courtney Jones, Carmel Realty Company

Interest rates were at an all time low last year and although historically speaking getting a loan is still a bargain, rates have been inching upwards. The jury is out whether our market is further declining or rebounding. I personally believe we are at the bottom and although the next couple of years may be a roller coaster ride, we will see a modest recovery. With that said, there are still buyers out there who are waiting for more foreclosures to hit and prices to further decline before making a move. Below is an article passed along to me by Bob Walker at Blue Adobe Mortgage. The article illustrates how waiting for a "cheaper" house will actually cost the home buyer more in the long run due to the rising cost of borrowing money.

Global Hot Spots

Apr 07, 2011 — Courtney Jones, Carmel Realty Company

The cities to our North are heating up - and that is good news for the Monterey Peninsula! Recruiting firms are back to business recruiting for growing companies. Foreign investment on the West Coast is predicted to increase this year. One recent example is the Russian Innovation Center that just opened this week on Sand Hill Road in Menlo Park.  San Francisco is hosting the 34th America's Cup in 2013. The highest sale ever recorded for a single family home in the U.S. just sold for $100M in Los Altos, California. The National Association of Realtors also just reported that sales of homes over $1M rose 4% in February, compared to one year ago. This is all good news that the economy is rebounding, and rebounding locally. But if you still don't believe me, check out this recent study by the McKinsey Global Institute, "Urban World: Mapping the Economic Power of Cities." The article states that San Francisco could be one of the richest cities in the world by 2025, and San Jose could be even richer. Both locales are named in their "top 25 global hot spots." 13 of these "hot spots" are located in China. Among these "hot spots," San Francisco is predicted to have some of the fastest economic growth, concentrated over the next 15 years. What does that have to do with the Monterey Peninsula? We inevitably feel the demand from Silicon Valley and San Francisco buyers looking to purchase a vacation home here. A surge in demand has already been felt in the Golden Rectangle of Carmel-by-the-Sea and the high-end markets in Pebble Beach. We expect demand to continue throughout our selling season, the summer and fall. I get the sense that buyers feel confident about our area and our pricing. With 148 active listings in Carmel, 107 in Pebble Beach and 89 in Carmel Valley, there is plenty to choose from!

Pebble Beach Leads Our High-End Recovery

Mar 30, 2011 — Courtney Jones, Carmel Realty Company

The Monterey luxury real estate market is showing signs of improvement in the first few months of 2011. The top 5 real estate sales for the Monterey Peninsula so far this year are all in prestigious Pebble Beach California: 3180 Cortez sold for $11,250,000 in an “off market” sale represented proudly by Carmel Realty. 3361 17 Mile Drive which sold in 13 days for $7,450,000, 83% of the original list price. 3105 17 Mile Drive sold for $6,500,000. 1553 Riata sold for $4,500,000. 3217 Whitman Lane was a short sale offered for $5,995,000 and sold this week for $4,000,000. The same time period last year saw only two sales above $4M.
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