There is historically low inventory around the country and state. February reported a sale-to-list price ratio of 99.6% followed by a 7-day reading of 99.9% for the end of February.

Inventory across the Monterey region is shrinking quickly as demand remains high. Much of this was a result of selling through past inventory and limited new listings coming on the market.

When looking at inventory by price point and areas, there is a shortage of supply. This is especially apparent under $1.5M where multiple offers are common as homes come on the market.

While the number of listings going into contract is not as high as July 2020, there is significantly less inventory that is causing a sharp increase in market velocity (and multiple offers). 

The steady demand and low inventory is causing a rise in the median home sales price up 26% year over year. 

A more specific look at 3-month rolling averages illustrates the sudden and sustained prices.

The chart illustrates the wave of sales in context to the past two years.

A similar, but even more pronounced wave of sales is in properties of $2M+ in the area compared to the past two years.

If the area was broken out as its own county, the median home price would be just below that of San Mateo and San Francisco.

While off record lows, interest rates remain low for home purchases.