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As I look at listings in Monterey, homes priced at $1 million appear to be quite ordinary.

Based on data from early 2026, the median home sale price in the city of Monterey is around the mid to high $800,000s.

The median price is slightly different from the average price. It refers to the price that sits exactly in the middle when homes are listed in order of price. So, $850,000 is not the highest price. In reality, there are many homes listed for over $1 million.

However, there is a significant price difference depending on the neighborhood in the Monterey Peninsula.

The most expensive area is definitely Carmel-by-the-Sea. When looking at home prices here, I often wonder if I'm viewing a home or a piece of art.

Even small homes are expensive, and well-located, beautiful homes easily exceed $2 million to $3 million. With its fairy-tale village atmosphere by the beach, tourist appeal, and excellent school districts, there's little reason for prices to drop in this area.

Just above, Pacific Grove is also not to be underestimated. Many listings are often in the $1.2 million to $1.5 million range. Despite having many older homes, prices remain high. The neighborhood is quiet, close to the ocean, and great for walking. Families with children often seek out Pacific Grove for its schools.

In Monterey itself, prices become a bit more realistic. You can expect to see homes starting from around $800,000 to over $1 million. Of course, if you want a sea view or are looking in a nice neighborhood, prices will go back up. In this area, it's not just about "it's Monterey, so it's expensive"; you need to consider location and the condition of the home even within the same city.

If your budget is tight, you naturally start looking at Seaside and Marina. In Seaside, you can find homes in the $600,000 to $800,000 range, while in Marina, homes can be found from the high $500,000s to the $700,000s. If you're looking for new housing developments, checking out Marina is also a good option.

If you keep looking for lower prices, you'll eventually come across Salinas. With listings in the $400,000 to $600,000 range, after looking at Carmel prices, everything suddenly feels affordable in Salinas. I initially thought, "It's only a 20-30 minute drive, so why not just live in Salinas?"

However, visiting in person reveals a very different atmosphere. Salinas is a large city that is convenient for living, with plenty of shops and hospitals, but it lacks the unique ocean and tourist town vibe of Monterey. Ultimately, it's a matter of choosing between home size and living environment.

Recently, due to high interest rates, transactions have slowed, and some price indicators have dropped compared to the previous year. However, just because a home price has dropped by 10% doesn't mean it's suddenly cheap. A $1 million home becoming $900,000 is still expensive. Moreover, the monthly mortgage payment varies significantly based on the interest rate at the time, not just the home price.

When buying a home in Monterey, it's essential to check the natural environment as well. Being in California's coastal region, it's wise to verify geological risks, landslide potential, and fire hazard areas by address. With many older homes, you shouldn't skimp on the home inspection. You need to thoroughly check the roof, plumbing, electrical systems, and foundation.

Ultimately, there are reasons why home prices in Monterey are high. The weather is nice, there's the ocean, beautiful scenery, and the small size of the town means new homes can't be built indefinitely. Personally, I wouldn't decide based solely on home size. You need to determine whether to buy a small home in Carmel, a decent home in Monterey, or go to Marina or Salinas to get a larger home for the same money.

In Monterey, it seems that buying a home is really about purchasing a location.