Monterey Peninsula News
Monterey housing market ends 2012 strong25 Jan 2013 10:48 AM
2012 ended on a good note for the housing market in the Monterey area, as home prices rose, sales volume increased and development projects were announced. According to the Monterey Herald, Monterey real estate saw marked improvements as the year came to a close, largely due to rising consumer sentiment and steady increases to property values.
The most basic measure of housing market strength - property values - saw the most tangible gains. According to information compiled by MLSListings Inc., the median price for a home in Monterey climbed more than 30 percent in December on a year-over-year basis. Perhaps even more impressive, however, is the fact that the median price rose more than 8 percent between November and December, typically a slow time for home sales.
Although improving sentiment among buyers is likely the central cause for this rise, the region's improving economy almost certainly also played a role. According to The Californian, development - both residential and commercial - in Monterey has spiked in recent months due to an improved employment picture and confidence among buyers.
Among the many new construction projects in the area are several new home developments in various states of completion. This is good news for those looking for homes in the area, as it could counteract the steady inventory decline currently underway in Monterey. According to Deadline News, the stock of for-sale homes in Monterey has been declining for several months, which has contributed to the rising prices for many homes in the area.