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Annual Market Report A Cornerstone in Luxury Real Estate for Over 1 Years www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 1

Letter From Carmel Realty Company Two thousand and fifteen was another banner year for real estate on the Monterey Peninsula and a record-breaking year for the agents of Carmel Realty Company. Carmel Realty Company once again dominated the luxury high-end market across all regions on the Monterey Peninsula. Of 21 properties sold in excess of $5M in Carmel and Pebble Beach in, Carmel Realty Company represented the Buyer, Seller or both on 13 transactions, including the top 6 sales of the year. In our three primary markets Carmel, Pebble Beach and Carmel Valley Carmel Realty Company s success in representing higher-end properties is reflected in our proven market share. Properties sold at $4,, or more, our market share was 58% of MLS transaction sales volume; and properties sold at $7,, or more, our share was a significant 9%! One of those sales was the recordbreaking sale of 1 Carmel Way. This iconic stone estate sits on the largest beachfront parcel in Carmel-by-the- Sea. Listed for $37,5,, this sale set a record for the highest sales price in Carmel s 1 year history, surpassing the sales price of the Butterfly House, represented by Carmel Realty Company, which closed in 213. Carmel Realty Company also represented the buyer on the highest price sale for in Pebble Beach, which was an offmarket property on 17-Mile Drive that closed for $18,,. Although this was a significant off-market sale, we did not see the volume of off-market sales (sales of properties not on MLS) in as we have seen in the past. The high-end market is starting strong in the first quarter of 216. As of the publishing of this report, we can report the sale of a total of 7 properties in the $7M and up segment with 3 of those properties in the $1M and up segment. Carmel Realty Company was involved in all of these transactions. Please see the detailed synopsis of each of our markets inside. All statistics are based on Residential Single Family listings and sales reported on MLS and off-market sales where Carmel Realty Company represented the buyer, seller or both. On behalf of everyone at Carmel Realty Company, we thank you for a great year and look forward to assisting you with all of your real estate needs in the future. Regards, Stacey Supica Senior Vice President, Operations Broker Dolores South of Seventh P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1 Fax: 831.624.7338

Table of Contents Letter From Carmel Realty Company.......... 2 Carmel.................................... 4 Pebble Beach............................... 5 Carmel Valley.............................. 6 Monterey & Pacfic Grove.................... 7 High-End Luxury Market Report......... 8 Historical High-End Luxury Market Report.... 9 Christie's Affiliation........................ 1 Notable Sales of....................... 11 Our Team................................. 12 www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 3

Carmel Sales Volume by Segment Average Sales Price $3M-5M $5M+ $2,, $1M-$2M $2M-$3M $1,5, $1,, <$1M Months of Available Inventory 25 2 15 1 5 Total Sales Volume $6M $5M $4M $3M $2M $1M Number of Transactions 35 3 25 2 15 1 5 Average Days on Market 2 15 1 5 The Carmel market remained strong in with another gain in average sales price. Although there were fewer transactions, we saw an increase in overall sales volume due to an increase in average sales price because of the shortage of inventory. The amount of available inventory dropped again in showing the strength of the Carmel market. In, it would take just over 7 months to sell through all inventory, which was a decrease from 214. Almost half of the 31 transactions completed in Carmel in were in the $1M-$2M segment. There was an uptick in the higher end with 28 sales in the $3-5M segment and 13 in excess of $5M. The record-breaking $27M sale of 1 Carmel Way in December was the highest sale price in Carmel s history. Carmel Realty Company was proud to represent both the buyer and seller in this historical transaction. Dolores South of Seventh P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1 Fax: 831.624.7338

Pebble Beach Average Sales Price $3,, Sales Volume by Segment $5M+ $3M-$5M $2,5, $1M-$2M $2,, $2M-$3M $1,5, Pebble Beach saw a decline in total sales volume and a slight decrease in average sales price last year. This is due to the large number of transactions closed in 214 in the $1M and up segment. In 214, the total sales volume for the $1M and up segment was $117M. This number fell sharply to $38.4M in due largely to a limited inventory supply of $1M and up properties. There were 116 transactions totaling $246M in residential sales creating an average sales price of $2,128,775 in. There were 9 sales in the $5M+ range, and the highest priced sale in Pebble Beach in was a 17 Mile Drive estate that sold for $18M. <$1M Months of Available Inventory Number of Transactions 35 15 3 12 25 9 2 15 6 1 3 5 Total Sales Volume Average Days on Market $3M 25 $25M 2 $2M 15 $15M $1M 1 $5M 5 www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 5

Carmel Valley Sales Volume by Segment Average Sales Price $2M-$3M $5M+ $1,5, $1M-$2M <$1M $1,2, $9, $6, Months of Available Inventory 4 35 3 25 2 15 1 5 Total Sales Volume $1M $8M $6M $4M $2M Number of Transactions 12 1 8 6 4 2 Average Days on Market 25 2 15 1 5 The Carmel Valley market heated up in, which is evidenced by the almost $2k increase in average sales price from $841K to $1,3,. The number of sales decreased by only 2, but the total sales volume increased by $14M. The majority of the 82 sales were in the $1M and under segment. There were 24 sales between $1M-$3M and 5 in $2M-$3M. There was no activity in the $3M-5M range. There was only one sale over $5M, which was a winery and vineyard property. The number of days on market dropped again from last year down to 91. This is significant as this is the fewest number of days on market in the last nine years. Inventory levels remained strong in Carmel Valley with an average of 13.8 months of inventory available in. All of these factors trend toward another great year for the Carmel Valley market. Dolores South of Seventh P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1 Fax: 831.624.7338

Monterey & Pacific Grove was a great year for the Monterey and Pacific Grove markets. The average sales price increased again in both cities. Monterey s highest average sales price rose to $875K and Pacific Grove s increased to $93K, a high that has not been seen since 27. 229 properties representing $2,495,966 worth of real estate changed hands in Monterey in. A substantial increase over 214 numbers. The majority of the sales were under $1M, but there was still strong activity in the higher markets. 4 sales occured in the $1-2M range and 11 in the $2-5M range. The already low inventory level in Monterey from 214 lowered again in with the average inventory level decreasing by an entire month down to an average of 4.6 months of inventory available in. Pacific Grove holds both the shortest days on market and the lowest average inventory levels of any other peninsula area market. Pacific Grove properties sold in less than 6 days during, and there was only 4 months of inventory on average in. Both sales volume and number of transactions increased in. Of the 166 total sales in, almost 75% were less than $1M. The remainder of the sales fell in the $1-$3M range with 42 sales. Sales Volume (Monterey) Sales Volume (Pacific Grove) $2M-$3M $3M-$5M $2M-3M $1M-$2M $1M-$2M <$1M <$1M Average Sales Price Average Sales Price $1,2, $1,, $1,, $8, $8, $6, $6, Average Days on Market Average Days on Market 15 15 12 12 9 9 6 6 3 3 www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 7

High-End Luxury Market Report of Carmel & Pebble Beach $5M & up sales of. $1M $5M sales Twenty total transactions, twelve in Carmel and eight in Pebble Beach 6% Carmel 4% Pebble Beach $5M & up sales 2 Dolores South of Seventh P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1 Fax: 831.624.7338

Historical High-End Luxury Market Report of Carmel & Pebble Beach Five years of cummulative sales greater than $1M since 21. Total sales volume over the past 5 years - $1M & up segment $49,55, 71% Pebble Beach 29% Carmel 5 years $1M sales Twenty-four total transactions, seven in Carmel and seventeen in Pebble Beach $1M & up sales since 21 25 www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 9

The brand that defines luxury real estate. Worldwide. As the exclusive Affiliate of Christie s International Real Estate on the Monterey Peninsula, Carmel Realty Company is distinguished as best in class. We benefit from ties to the world s leading art business and its global real estate network. Beyond gaining a competitive advantage in our local market with Carmel Realty Company, Christie s International Real Estate affords you the opportunity of engaging a worldwide audience of high-net-worth homebuyers outside your local sphere. Christie s vs. Sotheby s Total Sales Volume: Sales volume* US$113B Number of offices** Number of agents** Percentage of non US web visits*** Annual website visits**** Annual web page views**** US Sales Volume: US $95B 57 Million 49 Million 1,35 32, US$7B 57% 76 16,5 36% 11 Million 75 Million SOTHEBY S INTERNATIONAL REALTY SOTHEBY S INTERNATIONAL REALTY SOTHEBY S INTERNATIONAL REALTY SOTHEBY S INTERNATIONAL REALTY SOTHEBY S INTERNATIONAL REALTY SOTHEBY S INTERNATIONAL REALTY - The Christie s International Real Estate Affiliate network receives more than 57 million online visits each year from discerning homebuyers worldwide. - More than US$113 billion of real estate was sold by Christie s International Real Estate Affiliates in 214. - The Christie s International Real Estate brand attracts a global audience 57 percent of visitors to christiesrealestate.com come from countries outside the United States. The global nature of our product offering, with 51 percent of property listings outside the United States, is a key factor in attracting international visitors. - The Christie s International Real Estate network comprises 138 Affiliated brokerages with 32, real estate professionals in 47 countries. Dolores South of Seventh P.O. Drawer C Carmel-by-the-Sea, California 93921 Office: 831.622.1 Fax: 831.624.7338

Carmel Realty Company's Notable Sales of 1 Carmel Way Carmel $27M 3168 17 Mile Dr Pebble Beach $18M 8 Carmel Way Carmel $12.75M 3188 17 Mile Dr Pebble Beach $11M 3958 Ronda Rd Pebble Beach $9.7M 333 17 Mile Dr Pebble Beach $9.463M Scenic 2 SE of 9th Carmel $9M 3145 17 Mile Dr Pebble Beach $8.625M 1159 Sombria Ln Pebble Beach $7.3M 825 Carmel Valley Rd $5.947M www.carmelrealtycompany.com A Cornerstone in Luxury Real Estate for Over 1 Years 11

Rebecca Wolf Arnold Dana Bambace Mark Baxter Mary Bell Sarah Bouchier Paul Brocchini Peter Butler Lisa Talley Dean Mark Duchesne Bobbie Ehrenpreis Susan Freeland Our Team Nick Glaser Malone Hodges Dave Howarth Courtney Golding Jones Lynn Knoop Greg Kraft Kordula Lazarus Steve LaVaute Marcie Lowe Shelly Mitchell Lynch Kris McAulay Linda Miller Vicki & Bill Mitchell Terry Pershall Chris Pryor Mark Ryan Doug Steiny Mary Stocker Judy Tollner Pat Ward Rhonda Williams A Cornerstone in Luxury Real Estate for Over 1 Years P: 831.622.1 F: 831.624.7338 Dolores Street between 7th & 8th P.O. Drawer C Carmel-by-the-Sea, CA 93921 www.carmelrealtycompany.com