Leslie DeLuca has been a real estate agent in Monterey County for 20 years. She was born and raised in the county, and her dad was in real estate as well so she thought she'd seen every fluctuation of the market.
But the combination of low interest rates, high demand and insufficient inventory was something she hadn't seen before.
The number of pending sales in the county was up 26% in June and July 2020 versus the same period in 2019, according to Redfin, and the percentage of properties that went off the market within two weeks was up 23% in June and July in 2020 versus 2019.
DeLuca said she had just sold a house in Carmel-by-the-Sea the week we spoke and it received nine offers over asking -- that many offers and homes selling for over the asking price aren't common in the area. "What I'm finding is in all price points, I'm having multiple offers and people are bidding over asking price," DeLuca, an agent with Compass, said. "That happens in Silicon Valley, sure, but it really doesn't happen here."
She said buyers have also been willing to shorten their contingency period and "pay for things they normally wouldn't." Most of her buyers are from the Bay Area and Los Angeles, and they're looking for larger space for their family.
"No one has ever spent this much time at home before," DeLuca said. "People have realized what they really want. Home has become a lot more important to people."
Jess Canning, a realtor with Canning Properties Group and Sotheby's International Realty, said the demand is so high that the need for home inspectors has been more than they're able to keep up with. "Because this surge of demand came so quickly, we are coming with no reports and inspections; we don't have enough inspectors to deal with that all," Canning said. "We're trying to bring on new inventory as quickly as possible but we're playing catch up."
Active listings were down an average of 19% from May to July 2020 compared to 2019, according to Redfin.
"It has definitely been an unexpected journey this year," Canning said. "We were expecting an increase in inventory, and we've experienced the exact opposite. Right now, we'd have between 90 to 95 active listings normally. We have about 45 now. That's almost 50% less than what's normal."
Canning also said there have been shifts in what buyers are looking for in a home. "Previously, in 2019, we saw a shift to smaller homes and smaller footprints. That has completely flipped on its head this year," Canning said. "There's a huge demand for home offices and more square footage."
She's even noticed more buyers interested in more traditionally designed homes, as opposed to modern style. She said she thinks people know they'll be spending more time at home and thus are craving more defined rooms rather than big open floor plans.
There's also been an increased interest in family compounds.
"The fundamental question is, is this a temporary shift that's COVID related or is this a migration that will change the face of the peninsula?" Canning said. "Only time will tell."
