Q1 2026: Monterey Peninsula Market Snapshot

Single Family Homes  •  Q1: January – March 2026  •  vs. January – March 2025

What’s happening in our market — and why it matters

Before we dive into the numbers, a little context worth knowing: mortgage rates have climbed from around 5.99% to 6.38% over the past month. This increase is driven by a combination of geopolitical instability, rising oil prices, and renewed inflation concerns. This spike may look dramatic, but it’s not, and rates are still lower today than one year ago (6.65% in 2025). In today’s market, we’re also seeing the highest percentage of all-cash buyers (30%+), especially in our luxury markets.

What does that mean here on the Monterey Peninsula? A few things we’re watching: buyers are becoming more selective, and this has been true for the last year. They are taking more time, asking more questions, and being thoughtful about price. Mortgage applications are adjusting as some buyers recalibrate what they can comfortably afford. And pricing sensitivity is increasing, meaning well-priced homes are still moving, but overpriced ones are sitting longer.

That said, there’s plenty of reason for optimism. Foot traffic at open houses has been steady, which tells us that buyer interest is alive and well — buyers are out there, engaged, and looking. Some highly desirable, well-positioned properties are still receiving multiple, over-asking offers. And we’re entering our spring selling season, the busiest real estate season of the year, which historically brings more listings, more buyers, and more activity across the board.

The Peninsula remains one of the most desirable places to live in the country, and that doesn’t change with a 40-basis-point rate move. But it does mean that whether you’re buying or selling right now, having the right strategy matters more than ever.

Here’s how each community is looking this quarter:

Thanks for reading! Real estate on the Peninsula is anything but one-size-fits-all. If I can help you navigate it, I'd love to. Don't hesitate to reach out.

Ashley