Pinecrest has always inspired me. In all my years of real estate I have never seen a community with such a dynamic market and a variety of architecture that showcases some of the world’s most renowned styles.
Each month I will bring readers of the Pinecrest Tribune the “Pinecrest Market Pulse.” In these short narratives you’ll discover everything you’ll need to know about the current direction of Pinecrest’s real estate market.
So, where is the Pinecrest real estate market headed? While I cannot predict the future, I do keep a close eye on the sales facts and figures. Most times predictable trends appear that tend to follow clear cycles.
One of the key facts and figures of real estate is “Months of Supply.” This one simple number reveals a lot about where the market is, and where it is going. It tells us how many months it will take to liquidate the current amount of listings on the market based on the current rate of sales.
6 to 9 months of supply is considered supply/demand equilibrium
Less than 6 months is considered a seller’s market
More than 9 months is a buyer’s market.
Here is how I break down the market in Pinecrest:
- Properties under $1 Million
- Between $1 Million and $2 Million
- Between $2 Million and $3 Million
- Over $3 Million
As of the June 30, 2017, based on the averages of the last 3 months of closed sales we have the following data:
Less than $1 Million: 9 months of supply, which is a 55 percent increase over the same period in 2016
$1 Million – $2 Million: 10 months of supply, which is a 3 percent drop over the same period in 2016
$2 Million – $3 Million: 38 months of supply, which is a 168 percent increase over the same period in 2016
$3M +: 48 months of supply, which is a 54 percent increase over the same period in 2016
To summarize the market activity from January 1, 2017 to June 30, 2017, out of the 93 recorded sale in MLS there were:
45 sales under $1 Million
34 sales between $1 Million – $2 Million
9 sales between $2 Million – $3 Million
5 sales over $3 Million
Compared to a year earlier, the activity from January 1, 2016 to June 30, 2016, out of 95 recorded sales in the MLS there were:
46 sales under $1 Million
30 sales between $1 Million – $2 Million
13 sales between $2 Million – $3 Million
6 sales over $3 Million
Based on this analysis we can anticipate that properties offered in excess of $2 Million will likely experience price adjustments in the future. Once the prices in that market segment get more in line with what the market can support sales will increase.
While this information gives us a general sense of where the overall market is headed, we have to remember that we are talking about averages. Every property is unique and has a different value based on the amount of features and improvements it has coupled with it’s location and school district.
The other metric I believe is important to watch is the “Average Price Per Square Foot.” This rough metric makes it easy to determine where the average prices are at the moment, and can very quickly help you determine the price segment that your home, or future home, would likely fall into. Let’s take a look…
At the end of June 2017 there were:
Less than 1 Million: $274 per SQ FT down 1.3 percent from the same period in 2016.
$1 Million – $2 Million: $322 per SQ FT up 3.3 percent from the same period in 2016.
$2 Million – $3 Million: $389 per SQ FT down 3.7 percent from the same period in 2016.
$3 Million +: $368 per SQ FT down 15.8 percent from the same period in 2016.
Overall, Pinecrest’s real estate market is healthy, but needs price adjustments. Sellers who reduce now will gain the attention of the limited number of buyers who are in the market. As prices overall line up with current demand more buyers will make their way into the market.
Pinecrest continues to be a magnet for local and international buyers that are looking for exceptional schools, family-oriented communities and activities, and plenty of space. My best advice for sellers is to take a good look at your pricing strategy and keep your expectations realistic. Price is the ultimate marketing tool—use it wisely and you’ll be successful!
Have questions or comments? Call me at 305.788.8035 or by email boucher.n@ewm.com.
Nicolas Boucher brings over 20 years of experience as well as a global and local approach to real estate. Nicholas is aligned with EWM Realty International, a Berkshire Hathaway Affiliate and South Florida’s premier brokerage. EWM is a member of Leading Real Estate Companies of the World and Luxury Portfolio International, the world’s largest broker-to-broker network, and is the exclusive affiliate of Christie’s International Real Estate in Miami. His achievements in sales rank him among the Chairman’s Club at EWM, one of the company’s most distinguished honors. Nicolas has unparalleled knowledge of the real estate market and offers buyers and sellers meaningful and simple explanations of complex market trends. He specializes in Pinecrest real estate and is well-respected for his on-point pricing strategies; helping his customers approach the market as effectively as possible to minimize market time and maximize the experience.
