Looking at our latest data about the single-family home market in Pinecrest and comparing them with the last 5 years of activity give us a clear idea about the performance of the market and also help us to anticipate the direction it is heading to.
As far as Average price per Sq. Ft. of Sold properties, when we compare the current 12 months to the same 12 months 4 years ago the Average price jumped 28 percent from $267 per Sq. Ft. to $345 per Sq. Ft.
If we break down the numbers by price range we can see a better picture:
Under $1M, the Average price per Sq. Ft. is up 23 percent from $226 to $278
Between $1M to $2M, the Average price is up 25 percent from $279 to $350
Between $2M to $3M, the Average price is up 20 percent from $317 to $382
Finally above $3M, the Average is down 2 percent from $410 to $401
The Average Median price, which represents the number where the market activity is the strongest also jumped 30 percent comparing the current 12 months to the same 12 months 4 years ago from $848,000 to $1,100,000.
That Segment of the market is the most active and we have a huge number of Buyers looking to purchase properties preferably in move in condition or redone in that price range but the corresponding inventory is very low which will probably trigger a price increase due to high Demand.
Interesting to note that the Average day on the market for all properties comparing same period jumped 26 percent from 99 Days to 125 Days. Breaking that Average by price range is also very indicative of the current trend:
Under the $1M range, the Average Day on the market jumped 32 percent from 82 days to 108 days
Between $1M to $2M, it went up 25 percent from 102 days to 128 days
Between $2M to $3M, it decreased 36 percent from 191 Days to 122 Days largely due to prices reductions over the last 12 months
Above $3M it increased 61 percent from 136 days to 219 due to large increase of inventory and softer demand.
Looking at the Months of Inventory based on closed sale which is one of the most important metric we use the analyze the health of the market and comparing same period, the increase is significant as the number jumped 105 percent from 6 months to 13 months.
By price range:
Under $1M, the number jumped 118 percent from 4 months to 9 months
Between $1M to $2M, that number jumped 43 percent from 9 months to 12 months
Between $2M to $3M, the number jumped 137 percent from 11 months to 26 months
Above $3M, the number jumped 110 percent from 19 months to 39 months.
Under 6 months of inventory is considered to be a Seller’s market
Between 6 months to 9 months is a balanced market.
Over 12 months we are entering into a Buyer’s market territory.
As I mentioned earlier, the most active segment of the market is around the $1M price range.
Prices are expected to increase in that range.
We have experienced a price correction in the $2M to $3M market over the last 12 months and it translated into more sales in that segment.
The $3M and above is still experiencing an oversupply of homes but opportunities are here for Buyers.
It is also interesting to note that some trophy properties in the $5M and up range are trading despite an increase in inventory in that segment due to higher than average Design, better construction, over the top finishes.
Nicolas Boucher brings more than 20 years of experience as well as a global and local approach to real estate. Nicolas 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.