MCAR Blog & Forum

Housing facts and figures for Monterey County

Monterey County home sales for the third quarter of 2008 increased by 42% over the second quarter of 2008. The majority of sales, 70%, occurred in Salinas, South and North County. The remaining 30% of sales occurred on the Peninsula, with the majority in Seaside and Marina. Of the 941 home sales of single family residences (as reported by MLSListings) foreclosures accounted for 76% of the total sales.

Real estate is experiencing a very non-traditional market atmosphere. The majority of property is bank owned with asset managers hired to facilitate the sale. They in turn hire real estate agents to list those properties. The listing agents are asked to perform a multitude of tasks that wouldn’t be required on a traditional listing. Banks also take longer in the negotiation process with the buyers. Consequently, if a buyer is looking at a bank owned property (also known as an REO) selecting a REALTOR® to counsel on the dynamics of the transaction and assisting in navigating through the process will make all the difference in securing a successful closing.

The sale price of any real estate is established by what a willing buyer and willing seller agree upon, thus setting the market price for all other properties in a particular area. It is extremely difficult for the ‘traditional’ seller to compete with bank held properties that are priced for quick liquidation. Unless a seller has an urgency to sell, pricing property above the current comparative market price may not be in their best interest. Again, sellers should consult with a real estate professional to ascertain current market conditions.

Attempting to predict where the housing market is headed has become an almost daily guessing game. With average sales prices in the Salinas area between $200,000-$300,000, and Seaside/Marina around $300,000- $400,000, one would wonder if we are at the bottom. Owning a piece of Monterey County real estate is now more attainable than we could have imagined. For many this is a time of opportunity, be it for investment or as a first time home buyer.

Sandy Haney

MCAR CEO