MONTEREY – The median price for a single-family home in Monterey County clocked in at $1,019,500 in September, a 7% increase over last year when it was $949,000, according to MLSListings, a database for home sales. The record high of $1,093,000 was hit in October 2023.
“A variety of factors are influencing real estate in Monterey County,” said Monterey County Association of Realtors Government and Community Affairs Director Adam Pinterits. “The overarching problem remains lack of inventory which is why we have not seen as many or as significant price reductions as other California markets lately. However qualified and confident buyers finding the right home has also proved to be an increasing issue lately, this is reflected in the 6-day increase to median days on market over last year.”
In Monterey County in September, the median single-family home sold in 17 days for 98% of the list price based on 150 sales. Inventory was 578, up 12% from September 2024, and the number of new listings for the month of September was up 4% from the same time last year. Closed sales increased 2% year-over-year.
In California, the median price for a single-family home in September was $883,640 compared to $868,150 the previous year – a increase of 1.8%. In the U.S., the median price was $385,000 in September compared to $378,000 the previous year, reflecting a 2% increase.
The average rate for a 30-year fixed mortgage is currently hovering at 6.25%. On top of the ever-present constrained inventory in Monterey County, interest rate increases over recent years have had a cooling effect on home sales, said Pinterits.
“Demand still outpaces our suppressed supply in Monterey County, but it’s really a question of qualified buyers working with their realtor to find the right lender and home purchase opportunity for them,” he said.
September fell between the trend lines of 2023 and 2024, which is fairly normal for this time of year.
“But we are seeing a slight uptick so far in October,” said Pinterits. “Inventory and sales are higher mid-October than the past two years in a row.”
Monterey County’s median home price increase in September of 7% over last year outpaced those posted by nearby counties, including San Benito where the median price is $799,900, a 2% increase, Santa Cruz with a median price of $1,395,500, a 3% increase, and Santa Clara where the median home price was $1,880,000 in September, a 1% increase from the previous year.
“With the recent Fed rate decrease, the possibility of improved buyer confidence is exciting,” he said. “This also may entice more owners to sell, as their needs may have changed and they may get closer to the lower rates they took advantage of a few years ago.”
The U.S. central bank is expected to lower its benchmark interest rate by a quarter of a percentage point at its meeting at the end of October, according to published reports.
But further cuts this year are in question due to not knowing what is going on in the labor market since the federal shutdown has delayed information from the Bureau of Labor Statistics. Fed officials have not had a full readout on the job market since early September.
“Summer is typically peak real estate season, but there are still good opportunities for buyers and sellers alike,” said Pinterits. “Patience, and a good realtor, may pay off as buyers look for deals and sellers determine how quickly they need to sell.”
