High Ceilings and Lots of Windows

High ceilings and an plenty of windows make this home spacious and bright

This wonderfully spacious home with a great floorplan and lots of natural light is available in north Pinecrest.  In addition to being in one of the top locations in Miami-Dade County for both public and private schools, it has convenient access to shops, restaurants, the metro rail and U.S. 1.

Recent studies throughout the country have shown that more people want to give up commuting, and the accompanying high gas bills, and live in more walker friendly neighborhoods.  So, what is your home’s walk score?

New Construction

As I drive around town, I am seeing a lot more new construction.   This new single family home is going up in north Gables.   I have seen other ones being built in South Miami and Pinecrest as well.

In addition to the new construction I have been seeing many remodeling projects.  Significant additions are being added on to many existing homes.

All of this bodes well for the overall market.  Are you remodeling or adding on to your house?

• 8 in Coral Gables.  Priced from $349,900 to $13,475,000
• 7 in Pinecrest.  Priced from $585,000 to $2,099,999
• 5 in Coconut Grove.  Priced from $450,000 to $1,300,000
• 3 in Miami Beach.  Priced from $399,900 – $8,650,000

• Closed sales: 90.  Low of $270,000, high of $4,000,000. 7 were bankowned (REO), 10 are short sales or approximately 19% distressed sales.  57 closed in the second quarter.
• Pending sales: 48.  Low of  $265,000, high of $2,150,000. 3 are REO, 17 are short sales.  Almost 42% are distressed sales.
• Active sales:  160.  Low of $269,900, high of $5,000,000 ($4,999,999 to be exact!).  3 are REOs. 14 are short sales.  Only 11% distressed listings.  64 were listed in the second quarter.

What does this mean if you are a seller?  If you want to sell your home during the end of the summer buying season, drop your price now.  Homes are selling and people are still looking to buy in Pinecrest because of the quality of the public and private schools, parks, and good size lots.  If your home needs a lot of work, you are going to have to drop the price even further.  Buyers are looking for homes that need minimal updates.  If you don’t drop your price now, you are going to have to drop it even further come the beginning of the school year.

If you are a buyer, the numbers mean there aren’t as many “deals” in terms of short sales and foreclosures.  Those that are on the market, are priced well, and in reasonably good shape are going to have multiple offers, because there are fewer of them.  If you are financing your purchase, you are better off using the numbers to make an offer on a well priced, non-distressed listing.

1. Closed sales:  5.  None were short sales.  1 REO. 3 were cash sales.
2. Price range of closed sales: $670,000 – $340,000
3. Pending sales: 19.  3 short sales, 2 REOs
4. Price range of pending sales: $3.1 million – $369,000
5. Active listings: 183, 36 of which were listed in February.  23 short sales, 2 REOs
6. Price range of active listings: $5 million – $300,000

February was a slow month for closings, but cash was king with 3 out of the 5 closings being cash deals.  Only 19 homes out of 183 on the market went under contract and new listings were almost double the number of homes going under contract.  Strictly looking at the numbers, if you base inventory on the number of closed sales, we have 36.6 months of inventory.  If you look at pending sales, then you have a much healthier 9.6 months.

What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market, especially if you are looking at more expensive homes.  57% of the inventory for February is over $1,000,000 but none of the closed sales were that high.  Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price.  If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced.  If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.

What does this mean if you are a seller? You have a lot of competition so price really does matter.  Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities.  Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint.  The good news is that if your house is priced right compared to your competition, it will sell.  Inventories will start increasing as we get closer to the summer moving season and time is of the essence once you list your property.  The longer it sits on the market, the more likely it is to get a lower price.

1. Closed sales:  7.  None were short sales or REOs. 2, including the $2.1 million, were cash sales.
2. Price range of closed sales: $2.1 million – $570,000
3. Pending sales: 29.  16 short sales, 3 REOs
4. Price range of pending sales: $2.75 million – $265,000
5. Active listings: 184.  20 short sales, 4 REOs
6. Price range of active listings: $5.7 million – $300,000

Distressed sales are still making up the larger, 65%, part of the market in terms of listings going to contract, but the actual closings for the month are of regular sales.  Based on the number of active listings, distressed sales make up 13% of the market.

What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market.  Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price.  If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced.  If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.

What does this mean if you are a seller? You have a lot of competition so price really does matter.  Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities.  Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint.  The good news is that if your house is priced right compared to your competition, it will sell.

• Tuesday -  S&P Case Shiller home price index:  this index tracks changes in the value of residential real estate at both a national level as well as in 20 metropolitan regions (Miami is one them).  Although it is calculated monthly and is released on the last Tuesday of every month, it is published with a two month lag.  Tuesday’s report will include values through December 2010.

• Wednesday – new home sales :  this report is based on a survey conducted by the U.S. Census Bureau that starts with the number of building permits authorized for single family homes .

• Thursday  – pending home sales :  this index is prepared by the National Association of Realtors (NAR).  Because this report looks a homes that are currently under contract, it gives a good picture of where the housing market is headed in the next couple of months.  Although many of the pending sales fall through due to a variety of reasons (buyer’s don’t qualify or they get impatient waiting for a bank to approve a short sale are the main reasons in today’s market), many of the sales will close thereby absorbing inventory.

As of today, pending home sales in Coral Gables currently stand at 72 (24 since 1/1/11) versus an inventory of 410 active listings (45 new listings since 1/1/11).

Pinecrest pending home sales are 30 (7 since 1/1/11) and active homes for sale are 196  (17 added since 1/1/11).