June 2016 Pinecrest Market Update

Pinecrest continued to be a buyer’s market during June.  A buyer’s market has more than six months of inventory based on closed sales.

Overall, the number of closed sales is up compared to the prior month.  21 homes sold in June.  The number of homes placed under contract went down 10.5% compared to May.  17 homes listed as pending sales.

Pinecrest Market Update

For Sale vs. Sold

One of the first numbers to look at when analyzing the market is the latest For Sale and Sold numbers.  These give you an indication of what the absorption rate is, which in turn gives an idea of how buyers are behaving within the current market conditions [What is the absorption rate?]  There were 206 homes for sale in June 2016.  That number is up 25.6% compared to June 2015.  The For Sale numbers are down 1% from the month of May.

 

Pinecrest June 2016 For-Sale-Sold

As shown on the graph above.  The number of homes for sale has been steadily increasing since the beginning of the year.  With the exception of a minimal decrease in June, the numbers keep increasing.  The number of homes for sale in May and June is the highest it has been in the past five years.

Average Sale Price Per Square Foot

The average sale price per square foot in Pinecrest during June was $337.  That amount is down 4.3% from the May price of $352.  Since September of last year the average sale price per square foot has been above $300.  With the increasing inventory these average prices will begin to dip a bit.  I would expect to see another decrease next month.

June 2016 Pinecrest Average Price Per Square Foot

It is important to watch the average sale price per square foot in relation to the months of inventory, absorption rate, and the number of homes for sale.  The concern with increasing inventory accompanied by lower average sale price per square foot figures is a coming market downturn.  At this time Pinecrest is definitely a buyer’s market.  The issue moving forward is just how much of a buyer’s market it becomes.

Pinecrest Months of Inventory

The Pinecrest months of inventory was down in June compared to May.  In June the months of inventory based on closed sales was 9.8.  That is down 15.6% from the months of inventory in the month of May.

Pinecrest June 2016 MOI

What Should Sellers & Potential Sellers Take From This Pinecrest Market Update?

If you currently have your home listed for sale you should ask your agent for the latest sale numbers in Pinecrest and evaluate your listings performance.

Questions to ask:  Are you priced right?  How long have you been on the market?  Should you consider an asking price decrease?  Are you getting the right amount of interest in your property for the amount of time you have been on the market?  Pricing in a changing market is always a factor in attracting the right buyer.

Over the past few months the average sale price was 10% less than the asking price.  As inventory increase you should consider lowering your asking price, within that 10%, to make it more attractive to potential buyers.  In a market with a lot of options for buyers the key to sale is making your home as attractive as possible.  That attraction starts with pricing.

What Should Buyers Taken From This Pinecrest Market Update?

If you are working with a budget for Pinecrest properties, then be happy knowing that Pinecrest is your oyster!  The increasing inventory is bringing to market a lot of great options.   Pay attention to the market trends over the next six weeks to see if they are outside of the normal market activity of the past 12 months.  Use your knowledge of the numbers to your advantage when negotiating the price on your next Pinecrest property.  As I mentioned above for sellers, the average Pinecrest property is selling for 10% less than the original asking price.  Make sure you are not overpaying for a home in this market.
June 2016 Avg days on Market

An increase in the inventory will present new opportunities for you.  Pay attention to the price decreases this month because they may bring homes previously outside your budget to within reach.

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For more information on the Pinecrest Real Estate market, contact Adrian at adrian@adrianfoley.com and directly at 305.281.1377. 

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Adrian Foley
Adrian Foley
Luxury Real Estate Agent specializing in the Palmetto Bay, Pinecrest, Coral Gables, High Pines, South Miami, Coconut Grove, and Edgewater Markets.

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