December 2025 Report with market data through November
The real estate market began its usual mid-winter holiday season slowdown in November, marked by a substantial decline in both listing and sales activity. This contraction typically accelerates through December - normally the year's slowest month - before the market begins to wake up in mid-January. Although the inventory of new listings shrinks, December presents the period when motivated buyers can typically negotiate most aggressively, particularly on properties with extended days-on-market. As is virtually always the case, well-priced and prepared, and effectively marketed new listings can still sell quickly, often above the asking price. Our focus now shifts toward the New Year's market. In the past, the beginning of the year frequently ushered in a substantially higher level of demand that continued to build into spring. This occurred in early 2025 until affected by the "tariff shock" and subsequent economic reactions, initiating a significant slowdown in April. This report reviews a wide range of real estate market indicators through November. Our January report will provide an analysis of 2025's conditions and trends in the longer-term context of previous years. In the broader financial landscape, the first week of December saw the S&P 500 and Nasdaq largely recover from their substantial declines in November; and the 30-year mortgage rate was close to a 14month low. While consumer confidence showed a modest rise from November, it remains very low by long-term standards. Attention is now focused on the Federal Reserve’s upcoming decision regarding an end-of-year benchmark-rate reduction, and the subsequent inflation report due later in the month.
Report created in good faith using data from sources deemed reliable but may contain errors and subject to revision. Last period figures are preliminary estimates based on data available early in the following month. All numbers approximate and may change with late-reported activity.
Monterey County Home Sales Breakdown
Median home sales prices run much higher in the Carmel-Carmel Valley-Pebble Beach-Pacific Grove-City of Monterey region. For example, the
Monterey County’s Biggest Sales of the Year*
As reported to MLS
Monterey County Median House Sales Prices
The county 3-month-rolling median house sales price in November 2025 was unchanged year over year.
Median sales price is that price where half the homes sold for more and half for less. It is a very general statistic that typically disguises May 2022 Fall a wide range of prices in the underlying sales. 2020
Besides changes in fair market value, median sales prices often rise and fall due to seasonal and short-term factors.
3-Month Rolling House Sales, since 2017 $550,000 $500,000 $450,000 $400,000 $1,000,000 $950,000 $900,000 $850,000 $800,000 $750,000 $700,000 $650,000 $600,000
| Pandemic hits
Appreciation is typically measured year over year to account for market seasonality.
Nov. 2023 June 2024 Updated through November 2025
Aug. 2025
Carmel-Pebble Beach Region: Home Price Trends
3-Month Rolling Median House Sales Price
Median sales price is that price at which half the sales occurred for more and half for less, and is often affected by other factors besides changes in fair market value. Monthly and seasonal fluctuations are common. Longer-term trends are much more meaningful than short-term changes.
The 3-month-rolling median house sales price in November 2025 rose about 1.5% year over year. Because the number of sales in this expensive region is
Reflecting house sales in Carmel, Carmel Valley, Carmel Highlands, Pebble Beach, Monterey and Pacific Grove. $800,000 $600,000 $400,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,000,000 $2,200,000 $1,200,000
Monterey County House Value Trendssince 2005
3-Month Rolling Median Dollar per Square Foot Values*
Median $/sq.ft. value is a very general statistic, disguising an enormous range of values in the underlying sales. It is often affected by other factors besides changes in fair market value. Monthly and seasonal fluctuations are common, which explain many of the regular ups and downs in this chart. Longer-term trends are much more meaningful than short-term changes.
Carmel-Pebble Beach-City of Monterey-Pacific Grove Region
Monterey County - All *3-month rolling median house sales values reported to NorCal MLS Alliance, per Infosparks, large sample of
recession & foreclosure crisis
New Listings Coming on Market
Monterey County Market Dynamics & Seasonality
The number of new listings in November 2025 continued to fall (the typical seasonal trend) and was slightly down from November 2024. New listing activity typically hits its nadir in December.
The number of new listings coming on market ebbs and flows by seasonal trends, though it can be affected by specific market dynamics.
Per Realtor.com Research: https://www.realtor.com/research/data/, listings posted on site. Data from sources deemed reliable but may contain errors and subject to revision. May not include “coming-soon” listings. All numbers are approximate.
Monterey County Homes Market
On12/1/25, the numberoflistingsforsale declined from a monthearlierbutwashigheryear over year. 85.5% oflistingswerehouses,12% condos, and 2.5% townhouses.Listinginventory typically plunges within the month of December.*
The # of active listings on a given day is affected by 1) the # of new listings coming on market, 2) how quickly buyers put them into contract, 3) the sustained heat of the market over time, and 4) sellers pulling their homes off the market without selling.
11/1/22 12/1/23 1/1/25
* Active/Coming-Soon listings posted to NorCal MLS Alliance. Data from sources deemed reliable but may contain errors and subject to revision. Not all listings are posted to MLS. All numbers approximate. The number of active listings constantly changes.
Monterey County Homes for Sale
Listings Accepting Offers (Going into Contract)
The number of listings going into contract in November 2025 fell back from October but rose year over year.
Percentage of Listings Accepting Offers MontereyCounty: AbsorptionRatebyMonth
Absorption rate is the comparison of buyer demand vs. the supply of homes for sale: The higher the
the
Monthly Home Sales Volume
Monterey County Market Dynamics & Seasonality
NOTE: Sales in one month mostly reflect accepted offers in the previous month. Monterey County often sees substantial, but not particularly meaningful, monthly fluctuations in sales volume.
The number of home sales in November 2025 dropped back from October but was essentially unchanged year over year.
Monterey County Luxury Home Sales
Homes Selling for $5 Million+ since 2020
Closed sales mostly reflect accepted-offer activity in the previous month. Luxury home sales can fluctuate significantly from month to month but typically hit their low count in mid-
and then climb moving into spring.
Luxury home sales in November 2025 declined substantially from the peak in October.
Overbidding List Prices in Monterey County
Percentage of Home Sales Closing over List Price
Sales in 1 month mostly reflect market dynamics in the previous month. Seasonal ebbs and flows are typical.
More overbidding
Pandemic hits
Higher overbidding percentages signify more competition for new listings. Overbidding usually peaks during the spring selling season, but monthly fluctuations are common. 21% of sales sold over asking price in November 2025, compared to 27% in November 2024.
Average Sales Price to Original List Price Percentage
Monterey County Over/Under Bidding: Market Dynamics & Seasonality
100% = an average sales price at original list price. 98% = an average sales price 2% below asking price. More expensive homes, on average, see lower SP/LP percentages than more affordable homes.
The average home sale sold about 5% below list price in November 2025.
Median Days on Market: Speed of Sale
Monterey County: Market Dynamics & Seasonality
A measurement of how quickly the listings which sell go into contract, this statistic ebbs and flows per seasonal demand trends, and is a lagging indicator of market conditions. Generally speaking, more affordable homes sell more quickly than luxury homes.
Homes usually sell fastest in spring as buyers respond to the rush of new listings. Median days on market in November 2025 were 5 days higher than in November 2024.
Per Freddie Mac (FHLMC), on December 4, 2025, the weekly average, 30-year, conforming-loan interest rate was 6.19%, very close to its 14-month low.
The Fed’s next decision regarding another benchmark rate reduction is due 12/10/25.
*Freddie Mac (FHLMC), 30-Year Fixed Rate Mortgage Weekly Average: https://www.freddiemac.com/pmms. Data from sources deemed reliable. Different sources of mortgage data sometimes vary in their determinations of daily and weekly rates. Data from sources deemed reliable but may contain errors. All numbers approximate.
Financial
Markets, 2024 – 2025 YTD
Nasdaq Index: % Change since 01/24
S&P 500 Index: % Change since 01/24 Data
VIX Volatility Index*
By Day in 2025
“The CBOE Volatility Index, or VIX, is a real-time market index representing the [stock] market’s expectations for volatility over the coming 30 days. Investors use the VIX to measure the level of risk, fear, or stress in the market when making investment decisions.” Quote from
Investopedia
*CBOE Volatility Index (VIX), per https://www.cboe.com/tradable_products/vix/vix_historical_data/ and/or Yahoo! Finance: https://finance.yahoo.com/quote/%5EVIX/history/. Data from sources deemed reliable but may contain errors. All numbers approximate.
S&P 500 Cyclically-Adjusted Price to Earnings (CAPE) Ratio*
The CAPE ratio is a stock market valuation measure created by economist Robert Shiller. It is defined as the current price of the S&P 500 divided by the moving-average of 10 years of inflation-adjusted earnings and is principally used to assess likely future returns over longer periods. A higher CAPE ratio can suggest investors are expecting higher future growth, or that the stock market is overvalued.
As of December 1, 2025, the CAPE ratio is at its highest reading since the dotcom bubble.
$50,000
ByDaysinceMarch 7, 2024
Data per https://www.nasdaq.com/market-activity/cryptocurrency/btc/historical. Data from source deemed reliable but may contain errors and subject to revision. Cryptocurrency values change constantly and all numbers to be considered approximate.
Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics – such as “active listings,” “days on market,” and “months supply of inventory” – differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won’t be reflected in the data. “Homes” signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, unless otherwise delineated. Multi-county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.
Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities,
views, lot size, quality of outdoor space, “bonus” rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.
Median Sales Price is that price at which half the properties sold for more and half for less. It may be affected by seasonality, “unusual” events, or changes in inventory and buying trends, as well as by changes in fair market value. The median sales price for an area will often conceal an enormous variety of sales prices in the underlying individual sales.
Dollar per Square Foot is based upon the home’s interior living space and does not include garages, unfinished attics and basements, rooms built without permit, patios, decks or yards (though all those can add value to a home). These figures are usually derived from appraisals or tax records, but are sometimes unreliable (especially for older homes) or unreported altogether. The calculation can only be made on those home sales that reported square footage.
Photo use under the Creative Commons License: https://creativecommons.org/licenses/by-sa/2.0/
Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. This report has been prepared solely for information purposes. The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. Compass disclaims any and all liability relating to this report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, the report. Nothing contained herein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass does not provide such advice. All opinions are subject to change without notice. Compass makes no representation regarding the accuracy of any statements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future results.
