MAYBE TO THE POINT THAT THEY’RE BOOMING
By James Frangella
Revised Thursday October 16, 2008  6:00am PT

People are still buying real estate here in the Monterey Peninsula area.  In the last six months*, our real estate market has blossomed into a total of 435 sold properties**.  It includes single family dwellings, condos and multi-dwelling properties.  That total averages to 72.5 sold properties per month. 

So while every one else is moaning and complaining, preaching doom and gloom, we are still attracting buyers to our area. I believe that we live in a very special place and other folks must think so too.  Of course, it helped that these sold properties were priced correctly from the beginning.   But that is another topic in itself.

Here’s an interesting point …. If we maintain the average number of sold properties and the current pending sales from the first 6 months of 2008 through the balance of 2008, we will surpass the total number of sold properties for the entire year of 2007.  Since we still have not reached our traditionally busy summer months, I predict we will also beat the total for 2006!!  CLICK HERE to see a 10 year history of sold properties for the Monterey Peninsula.

FLASH!!  Seaside has sold more single family dwellings, condos and multi-dwellings so far this year (as of 10/15/2008) than 2006 and 2007. Projections reveal that 2008 will sell more properties than any other year in the last 10 years. Even the boom years of 2003 through 2005!  How about that, you doomers and gloomers!

Could it be that our sales for the Monterey Peninsula area are not blossoming but actually booming!!  I’m not going to believe the doomers and gloomers anymore until homes on the Monterey Peninsula actually stop selling.  Trust me on this.  That is never going to happen.  Never has and never will.

Here’s the break down on the sold listings in the last six months*:

Keep in mind that the above numbers are just those reported sold from our MLS.  I personally know of a few more that sold outside of our system.  I’m certain there must be even more.  So in reality the numbers could be even higher.  Look at that number for Carmel!  How’s that for a desirability factor??

Let’s take a look at pending sales***.  In other words, we still have more folks wanting to buy but haven’t closed escrow yet.

I don’t know about you, but these numbers seem pretty healthy to me.  That’s 168 purchase contracts scheduled to close in the next few weeks.  Let’s assume they all close in the next 60 days.  That is still maintaining our average of 72.5 sold properties per month but now at 84 per month.  Maybe not what we had back in 2003 through 2005 but that was an once-in-a-lifetime market.  Today's market is more realistic.  And so are the prices!

Top it all off, the prices in certain Peninsula area cities are settling into the affordability range.  So much in fact that we are seeing multiple offers on certain properties.  So what’s up with that???  Buyers are actually bidding prices up!! 

Take a look at those pending sales for Seaside.  I bet investors are taking a good look at Seaside.  They must know something we don’t!!  Investors are smart people, they know what they're doing (most of the time). I also bet you that prices in Seaside are now making sense as the income approach is coming into play on property valuation.  And any pricing based on future appreciation might soon be a thing of the past.

For all of you that purchased real estate in the last six months, I commend and congratulate you for your courage and especially your foresight to see a good deal when you saw one here in the Monterey Peninsula area.  Historically speaking, you will be rewarded.  You can’t go wrong buying real estate in paradise.

* Appraisers use sold comparables from within a six month period 

** From MLS records as of 6.30.2008

*** From MLS records as of 6.30.2008