Carmel-by-the-Sea, CA housing market

What this means

• Valuation. Prices are 19% above what local incomes have historically supported (this area's pre-2020 price-to-income ratio).
• Prices. Home values are up 6.6% over the past year (U.S.: +1.2%).
• Supply. Listings are 71% below the 2017-19 norm and falling (−43% vs. a year ago): still a tight market.
• Negotiating. Buyer leverage is moderate (59/100; U.S.: 54): homes sell for about 5.7% below their final list price; 24% of listings had a price cut (U.S.: 26%).
• Affordability. A mortgage on the typical home takes 123% of the median household income (U.S.: 35%); it takes about $531k a year to keep the payment at 30% of gross pay. That includes about $1,889 a year for home insurance (U.S.: $1,790).
• Buy vs. rent. Buying costs about $7,347/mo more than renting a typical home (mortgage payment vs. typical rent).
• Disaster risk. FEMA expects about $182 a year in natural-disaster damage per $100k of building value (U.S.: $155), mostly from earthquakes.