Monterey Peninsula News
High-end coastal homes helping Monterey's housing market27 Sep 2012 8:33 AM
The enduring demand for high-quality homes in the Monterey area has helped the region's housing market stabilize, according to The Californian. In fact, many investors view the market as so strong that they are scooping up properties, further raising the value of local land.
These factors led to a 12 percent jump in single-family home values between July 2011 and July 2012. This boost, coupled with continually rising demand, prompted Fitch Ratings, an international financial evaluation company, to recently raise its credit rating of Monterey to AA (with AAA being the highest rating), Reuters reports.
"Monterey's wealthy coastal communities have provided some stability," the report reads. "[Home prices] have shown increasing signs of stability in the first half of 2012."
The region's luxury homes have indeed helped buoy the area's housing market as a whole. High demand and low supply for high-end homes along the water have contributed to the aforementioned rise in median home prices.
The disparity between supply and demand may be driving the investors who are making offers on these properties, the Californian reports. While homes were on the market for an average of 100 days in July 2011, that number has since dropped to 79 days.