Monterey Peninsula Real Estate Market Report — Q3 2025

As summer transitions into fall, the third quarter on the Monterey Peninsula traditionally brings a dynamic blend of energy and anticipation. Between the excitement of Monterey Car Week, the arrival of second-home buyers escaping the heat elsewhere, and the steady flow of visitors through Carmel-by-the-Sea, Pebble Beach, and surrounding coastal towns, Q3 often sets the tone for the year’s real estate story. Historically, this is when momentum builds — transaction activity strengthens, luxury buyers return to the market, and trends begin to shape the year’s closing chapters.

Market Overview:

Overall, the market remained largely stable compared to both the previous quarter and Q3 2024. The average sales price, number of homes sold, and total volume each fluctuated by less than 5%, suggesting a period of relative balance across the Peninsula.

The most notable change was in Days on Market (DOM) — a metric that often reveals the pace of buyer decision-making. Carmel-by-the-Sea, Greater Carmel, and Pebble Beach saw a 45% increase, averaging 67 days on market, while Marina and Seaside recorded a 35% increase, averaging 51 days. In contrast, mid-market neighborhoods experienced a 14% decrease in DOM, signaling sustained strength and steady demand in that segment. Together, these shifts reflect a more deliberate and selective buyer pool, particularly in the luxury tier, while the middle of the market continues to move with confidence.

What It Means for Buyers & Sellers

For buyers, the extended time on market in certain areas can mean more negotiation opportunities and a chance to act thoughtfully rather than urgently. For sellers, accurate pricing and presentation remain key — homes aligned with current demand trends are still moving swiftly, especially in sought-after mid-range neighborhoods where inventory remains tight.

Looking Ahead to Q4

As we move into Q4, the big question is whether the steady buyer activity seen through summer and fall will carry through to year’s end, or if seasonal slowing will temper the pace. Either way, the Monterey Peninsula continues to show resilience and balance — a hallmark of a mature, highly desirable market.

Let’s Connect!

Despite the market’s steadiness, our team remains as active as ever. We currently have three listings “coming soon” and seven active listings across the Peninsula — but we’re never too busy to connect. Whether you’d like to talk through your neighborhood’s trends or simply catch up over coffee or a glass of wine, we’d love to hear how you’re doing.

📞 Contact Elise Cricchio for personalized market insight.

The Malone Hodges Team

Monterey Coast Realty

Realtor® | DRE#02213152

831.206.9969