The Monterey Peninsula had a very strong first quarter in 2021. The total number of sales and total volume increased over the previous Q1 in almost all of the 9 markets we track. As reported in our 2020 annual report, last year was a very dynamic year. Q1 of last year started out strong, but by the middle of March, volume dramatically declined due to the initial COVID-19 shelter-in-place directive. April of 2020 became the slowest month we have experienced on the Monterey Peninsula in over a decade. By June and throughout the rest of the year, the market was setting record highs in units sold, total sales volume, and average selling price.

 

The year ended with a very strong fourth quarter in 2020 and all indications were that demand would remain high into 2021. This demand has propelled us to achieve outstanding growth over Q1 of last year but does not reach the record levels met in Q4 of 2020.

 

Record high sales in 2020 and in the first quarter of 2021 has caused more than a 50% decline in the total number of homes currently for sale on the Peninsula. This tight inventory has contributed to a healthy increase in average selling price in most markets.

 

In early Q2 of 2021, we are still experiencing high demand in most markets. Many homes are experiencing multiple offers and when priced right, homes are selling at or above asking price. We believe this will continue throughout the rest of the year. While last year’s record volume will be hard to reach given our reduced inventory, we do expect a very healthy market through the end of the year.

 

We hope you will find the attached quarterly report informative. As always, please be sure to contact us if there is anything we can do to help you, or your friends and family, with real estate plans in our marketplace.