As Pinecrest celebrates it 20th year of incorporation, I want to share with you what I believe is the #1 reason the Village is so great. Plain and simple, it’s the real estate. Sure, there are the many restaurants, Pinecrest Gardens, great businesses (past and present) and the parks. But what really makes Pinecrest Pinecrest is the land, its improvements and where it sits geographically.
As one of the first areas to incorporate, the people of Pinecrest knew they had a near perfect blend of location, lot sizes, traffic flow and other factors that created some of the best living in South Florida. Since 1996, changes in Pinecrest have been thoughtful and iterative, as the Council saw fit to improve Village services and the natural beauty we enjoy while we live, work and play here. The business community latched on early and has been rewarded for its forethought and investment.
As ranches turned into McMansions and home prices rocketed up and then plummeted in the ‘big crash’, the pride never left the residents of 33156. In fact, our reputation of being one of the best places to live in the country continues to grow today.
So now, as Pinecrest reflects as a 20 year old, it is worth looking at our real estate. As a local real estate expert, I want to hold up an honest mirror so we can ready for what comes next. It’s going to be an interesting few years. Nothing doomsday, but certainly worth analyzing.
Focusing on residential, the past two years has proven noteworthy. There was (and is) a tremendous amount of new construction homes concentrated north of SW 112th Street and east of SW 72nd Avenue. Builders saw the ROI in taking acre-sized properties and building homes between 6000-9000 square-feet.
There were eager buyers who wanted large estates. However, change is in the air and the once $900,000 land purchases in that area has slowed. Why? It comes down to saturation. Once that type of construction becomes more commonplace, it is no longer special.
Outside of new construction of large homes, prices for more moderately sized houses have been flat for a while now. This is due to the fact that older homes only have the potential to take advantage of a large lot and to unlock it means significant planning and investment, something most Buyers do not want to do.
I think this is a healthy pause in our market. And, the flat market generally pervades throughout South Florida. Our local market is also seeing building inventory, which will put downward pressure on pricing.
Looking at regional trends, Pinecrest is poised to be heavily impacted by building inventories. Homes valued between $300,000 and $1M have an eight-month supply, just at the edge of a balanced, healthy market. However, when you move into the $1M+ bracket, that is much more prevalent in Pinecrest, inventory levels spike to 24-months of supply, indicating a Buyer’s market. If you get above $3M, the inventory is nearly 4 years! Not good.
Given the number of $1M-plus homes in Pinecrest, along with its stellar reputation, one would think Buyers would flood in. However, this is not the case. As a real estate professional, I am showing Pinecrest homes far less now than I did even in November of 2015.
So, what’s up with the market and why are Buyers taking a pause? One could speculate that the upcoming Presidential election is a factor. The stock market is another prevalent thought. Whatever the cause, it is the effect that we must be mindful of and know how to read.
If you desire or need to sell over the next 6-9 months, the market will likely prove to be fickle at best. Buyers will try to beat you up, especially if you go it alone as a FSBO (For Sale By Owner). Statistics show 91 percent of FSBOs end up listing with an agent.
Thinking you can get top dollar as a Seller now may also prove heartbreaking. The pricing trend is headed downward; so don’t expect to get more than the one that just sold down the block.
Holding off until the market improves may also be a difficult road. I recently attended a Realtor luncheon where top agents like me speculate these weakening market conditions could linger for 12-18 months.
At present, I suggest either list right away (you’ll likely get to buy your next place at a discount as well) or bask in the Pinecrest property you own. Remember, it ultimately comes down to location, location, location and you’ll never go wrong with a Pinecrest address.
If you’d like to know the true value of your home, go to MiamiHal.com/myValue to receive a free, no obligation home evaluation or ask a trusted professional to visit you. Only a neighborhood real estate expert who’s seen the inside of your home can give you an accurate value.
Hal Feldman (MiamiHal) is a Realtor with RE/MAX Advance Realty. You can contact him with your story ideas or real estate questions at www.MiamiHal.com, Hal@MiamiHal.com or www.facebook.com/MiamiHal.