MONTEREY – The median price of a single-family home in Monterey County ended the year at $900,000, down 3% from December the previous year, but 5.26% higher than the statewide median price of $852,680.
Inventory in December was 413 units in the county, up 7% from the previous year. Closed sales at the end of 2025 increased 8% year-over-year, while new listings grew 8% compared to the same time last year.
“The Monterey County real estate market at the end of last year reflected shifts in buyer expectations and sellers adapting accordingly,” explained Monterey County Association of Realtors Government & Community Affairs Director Adam Pinterits. “Price adjustments have been growing more common as sellers revisit their priorities, but this effect is muted compared to other regions because of decades of restrictions on construction. Average days on market are increasing, as sellers prioritizing the highest price wait longer to find the right buyer.”
In Monterey County, the median single-family home sold in 26 days for 98% of the list price based on 155 sales in December 2025, according to MLSListings.
In neighboring San Benito County, the median single-family home cost $762,500 and sold in 37 days for 98% of the list price based on 40 sales in December 2025. Its inventory was 92, down 2% from December 2024. The number of new listings was down 4% from the previous year. While in neighboring Santa Cruz County, the median single-family home cost $1.27 million and sold in 39 days for 98% of the list price based on 106 sales at the end of 2025. Its inventory was 238 and unchanged from December 2024. The number of new listings for the month of December was down 8% from December of last year.
The National Association of Realtors has said that with more homes on the market and slightly improved affordability, first-time homebuyers will have better opportunities in 2026.
According to the California Association of Realtors, both home sales and the median price are projected to inch upward this year.
This year “promises further shifts, and potentially more opportunities,” said Pinterits. “Conversations in Sacramento and Washington D.C. suggest a more serious policy focus on housing. What remains to be seen is exactly which policies result from these conversations.”
U.S. News and World Report online says that analysts expect the 30-year fixed mortgage rate to bounce between 6% and 6.5% over the next two years, with some chance that rates could fall below 6% at the end of 2026 and into 2027. However, that could change as markets continue to digest changing economic data.
“There are too many economic variables right now to predict rate changes for the entire year,” said Pinterits.
A 30-year fixed mortgage at 6.5% is a historically great rate, added Pinterits, so many buyers feel their time is now. Other buyers are hoping predictions of one more rate drop this year are accurate.
“What most experts agree on is that we are not going to see the record low rates from early this decade again,” he said. “So don’t wait for that.”
But there may be changes on the horizon to help people seeking homeownership.
“Leaders at all levels of government are discussing new policy ideas,” said Pinterits. “It is important for them to hear from all of us, to urge them to prioritize policies to facilitate more homeownership opportunities and improved affordability.”
