2025 Pebble Beach Market Insights

A Strong Start to 2025

After a quiet finish to 2024, the Monterey Peninsula real estate market roared into 2025 with renewed strength. Total sales volume surged nearly 20% year-over-year in Q1, fueled by more transactions and a nearly 5% increase in average sales prices.
The sub-$3M market led the way with the highest transaction activity. In contrast, the ultra-luxury $10M+ segment saw a slower, more deliberate pace, with buyers carefully evaluating options before making commitments. The sweet spot continues to be the $3M–$10M Pebble Beach homes for sale, where balanced momentum is expected to grow throughout the year.

Pricing & Inventory

Q1 2025 brought a record-setting median sales price across the Peninsula, underscoring the long-term strength of owning property in Carmel, Pebble Beach, and surrounding communities. Even with inflation, Monterey Peninsula homes continue to deliver steady appreciation and remain one of the most attractive lifestyle investments on the West Coast.
Inventory, however, remains tight. While there are more listings than last year, available homes are still well below pre-pandemic averages. This limited supply, paired with steady demand, is keeping upward pressure on prices.

Market Dynamics

Homes are still selling at healthy levels, but the pace is less frenzied than in 2022–2024. Luxury homes in Pebble Beach are spending more time on the market, particularly in higher price categories, as buyers exercise patience and are holding out for a property that checks all of their boxes.
Notably, many buyers in this area are affluent, often from out of state, and less sensitive to interest rate changes. This creates a more thoughtful, curated market dynamic where premium properties still command attention, but negotiations are becoming more balanced.

The Second Half of 2025: What’s Ahead

Looking forward, I expect the Pebble Beach and Carmel real estate market to remain healthy and stable, with several defining trends:
* Continued Stability – Expect modest, steady price appreciation rather than volatility.
* Increased Transactions – Pent-up demand is likely to bring more sales, especially in the $3M–$10M range.
* Selectivity in Ultra-Luxury – $10M+ trophy homes will continue to attract attention, but at a slower pace.
* Shifting Leverage – With slightly more homes available, buyers will enjoy a bit more negotiating power than in the past three years.

Final Thoughts

The Pebble Beach real estate market remains a haven for those seeking both lifestyle and long-term value. From second homes overlooking the Pacific to estates within walking distance of The Lodge or MPCC, opportunities remain strong for buyers and sellers alike.
If you’re considering selling, now is an excellent time to showcase your property while inventory is still limited. And if you’re a buyer, there’s a growing window of opportunity to negotiate thoughtfully in today’s market. With interest rates expected to continue to decline over the next six months or so, this will likely be the positive nudge that many buyers are looking for to jump into the market. 
As always, I’m here to guide you with a tailored strategy that aligns with your goals. Let’s connect to explore your next chapter in Pebble Beach, Carmel, or the greater Monterey Peninsula.