The boom in the real estate markets for more rural areas across the state wasn’t expected when COVID-19 first hit. But now, markets like the Monterey Peninsula, Tahoe and Napa are leading the charge. 

Almost every day I get a call from a buyer looking to relocate to the Monterey Peninsula. With remote learning and work, you can live anywhere you want. There has been a general shift in perspective.  People are looking to trade up, trade down, move out of state. The pandemic has basically pushed people into action. 

Here on the Monterey Peninsula, the summer has been record breaking. Traditionally, we’ve been a buyer friendly market. But now, it’s multiple offers within days of hitting the market. While our inventory is down about 30%, we still see a consistent trickle of new listings as owners recognize the opportunity to sell at a relative high. The market has completely shifted in a matter of 2 to 3 months. 40% of our buyers are coming from the San Francisco Bay Area with more families moving here, rather than retirees, which was more common in the past.

The exodus from San Francisco is real. 

Sheri Mitchell of Sotheby’s in San Francisco tells me the city’s market has turned from a sellers’ market to a buyers' market and condos are the hardest hit right now, especially in the larger buildings downtown (SOMA/South Beach/FiDi). “No one wants to share elevators or be stuck without private outdoor space right now.” There are more cash buyers too. Sheri wonders if people are pulling money out of the stock market expecting a rough ride as election day gets closer. The few buyers out there are looking for value and inventory is flooding the market. Some are deciding to buy in Marin or others want to split their money into two homes - a less expensive place in the city and weekend get away.

Katherina Haug with Sotheby’s in Tahoe shares that their market is on fire, with 50% less listings than normal and double the demand. Almost every listing has multiple offers within days. “Every home is selling, even those that were on the market stagnant for a year+ in every sector of the market. Our buyer-demographic has always been predominantly Bay-Area residents, however with the limitations on travel, this has only increased. Buyers are looking at escapes within driving distance of their primary homes. School enrollment has evidently skyrocketed for our local school districts. Sellers on the other hand are not selling. If this is their only escape, why would they sell it?”

No one knows how long this crazed market will last. Our standard selling season on the Monterey Peninsula runs through October and an election year is typically an uncertain time when buyers generally pause their search. But we’re all charting new territory in this pandemic and there are no crystal balls.