Pinecrest home sellers it is time for a conversation on pricing. The Pinecrest real estate market has over 200 homes for sale at the moment. More than 150 of those listing are luxury properties priced above $1,000,000. The months of supply, the number one metric in real estate, based on January’s sales is 11 months. The supply is even greater for the luxury market with 14 months of supply.
A preferable range of available inventory is 6 to 9 months. In Pinecrest, over the past 14 months, the available months of supply has not dropped below 9 months. There is no shortage of sellers in the area. So what is causing inventory to pile up? Pricing is one explanation.
There are plenty of buyers, especially luxury buyers, but they are waiting for today’s pricing to more closely align with their expectations of market value. An indicator of these expectations is evident in the Pinecrest sales over the past 90 days. During that time period the average sales price to original list price ratio was 87%. This means that seller’s were ultimately selling their homes for 87% of their original ask price. The average Pinecrest home was on the market almost 4 months at 117 days.
Buyers in the Pinecrest market are waiting for prices to adjust. It is up to Sellers now to look at their pricing in light of the past 90 days of sales and adjust. A price adjustment does not mean there has been any loss of value, it is just a perceptive adaptation to the reality of the current market. From 2012 through the middle of 2015 the market transitioned from a lack of supply to a healthy supply. Prices over the same time period steadily increased. Since June of 2015 the supply has steadily increased. Prices, however, have not adjusted to reflect the greater supply of inventory.
January 2017 Sales
There were 16 home sales in January. The average price per square foot was $312. For the luxury market, the average price per square foot was $348. When compared to December 2016, the time on market was higher and the sale price to original list price was lower during January.
Sellers and prospective sellers should pay close attention to the sales numbers and consider lowering their price and adjusting their expectation moving forward in 2017. Buyers are looking at the sales numbers and waiting for the right time to jump back into the Pinecrest market with purchases.
To see whats on the market in Pinecrest now, visit http://adrianfoley.com/pinecrest-homes/
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