Market Overviews at YE 2014 for Two High-End Luxury Markets
I would like to share with you my analysis of Pinecrest and the South Miami / Ponce-Davis and High Pines luxury residential real estatesubmarkets, two of Miami’s premier residential areas. Despite the proliferation of data that is accessible to all of us, I find there to be a lack of information for those interested in what is happening in these neighborhoods. As such please read while I go through some key points of real estate data for Pinecrest and as of year-end 2014.
2014 witnessed the fewest average days on the market since the Great Recession began, at 94 days. Our system only computes days on market with the current listing broker, so this metric can be misleading. However, houses that were priced properly sold quickly, as buyer demand remained strong. Only 5 houses took longer than 1 year to sell and 29 houses sold within ten days of being placed for sale. The average sale price in 2014 jumped to $1,601,428, up from $1,332,445 in 2013 (a 20% increase). While many other submarkets in Miami witnessed large price jumps in 2012 & 2013, Pinecrest was a lagging market in this respect with most of the price gains in the last 4 years occurring in 2014. Consistent with the rising market we have seen in the last few years, the average sale price per square foot in Pinecrest has risen by 30% since 2011 to nearly $300/Sq. Ft. At the high end of the market, we are now seeing prices above $500/Sq. Ft. with 6 sales at or above this mark in 2014. By comparison, only 3 sales were recorded above $400/Sq. Ft. in 2013, the highest of which was $452/Sq. Ft. The number of sales in 2014 was just under the total from 2013, but still well above the figures posted in 2008 (91 sales), 2009 (123 sales), 2010 (124 sales) and 2011 (125 sales).
Given the seller’s market we have seen the last two years in Pinecrest, it’s no wonder that we’ve seen a negotiation factor of 6% in 2013 and 5% in 2014. As the market starts slowly shifting away from a strong seller’s market, we should see more negotiation in 2015/2016.
Market Overview 2014– South Miami/Ponce-Davis/High Pines
Average days on market jumped significantly in 2014 from 131 days in 2013 to 196 days in 2014. However, this is due in large part to the sale of 4825 SW 80 Street, which took 2,134 days to sell. Excluding that property, the figure for 2014 equals 144 days on market. Overall, the trend has been increasing the last four years, with homes taking slightly longer to sell each year. The average sale price remains virtually unchanged from 2013 ($2,239,352) to 2014 ($2,229,936). Overall, pricing was flat in 2014 with equal pull from buyers and sellers. However, the average price has risen approximately 51% since 2011. There were 9 sales above $3,000,000 and only 4 below $1,000,000. The average price per square foot nearly cracked $400 in 2014. While relatively flat the last two years, the average price per square foot has risen nearly 37% since 2011. The number of home sales in this market remained steady at 38 in 2014, compared to 40 sales in 2013. To give a more historical context, there were 21 sales in 2008, 30 sales in 2009 and 28 sales in 2010. As such, we are seeing a period of strong absolute sales in this market currently. New construction in South Miami is elevating the stature of the submarket in the luxury sector, given convenient access to downtown South Miami. All three submarkets are seeing high levels of speculative new construction.
By: Ben Moss
Estate Agent | ONE Sotheby's International Realty
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