The Pinecrest luxury real estate market for single family homes is slow moving at the moment. In August the market had a double digit increase of months of inventory for the third month in a row. At the end of the month there were 14.8 months of inventory. Up 19.3% from 12.4 months supply at the end of the prior month of July.
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 137 homes for sale at the end of August 2016. That number is down 10.5% compared to July 2015.
As shown above the number of homes for sale has been going down for the past three months. At the same time, the number of homes selling has decreased. 9 homes sold in August, down 25% from the 12 sold in July. On a positive note, 33% more homes went under contract for sale.
The average sale price per square foot for Pinecrest luxury real estate during August was $376. That amount is down less than 2% from the month of August. Interestingly, despite three straight months of inventory increase, there has not been any significant drop in the average sale 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.
The Pinecrest luxury real estate market had 14.8 months of inventory at the end of August. That number represents a 19.3% increase from the month of July.
Sellers currently listed on the market are naturally frustrated. The average luxury home is took 143 days to sell in August. What is most surprising about many homes on the market is how long they have taken sell. There are great homes on the market that would, under different circumstances, have sold already. As inventory piles up list prices will likely soften. One indication of this trend to come is the number of homes that reduced their list price in August. Just over 11% of the Pinecrest luxury real estate market reduced their list price in August. Keep an eye out for more reductions in September.