The 2017 Miami Real Estate Update for Palmetto Bay Real Estate
What Happened with Palmetto Bay Homes in 2017 and What Can We Expect from Palmetto Bay in 2018?
This blog provides an overview of the Palmetto Bay real estate market in 2017 and compares the first two quarters with the last two quarters (Excl Dec 2017). We also provide you with the months of inventory, which is one of the best indicators for future behaviour.
Palmetto Bay Real Estate in Numbers
As multi-million Dollar homes behave completely different than $400,000 homes, we divided the market in 4 price ranges. Below we indicated the price ranges used together with an explanation of what a typical (average) home in that price range looks like
- Homes in the $300K – $499,999 range between averages of 1,950 and 2,200 SF on a 14,000 SF Lot
- Homes in the $500K – $749,999 range between averages of 2,800 and 2,900 SF on a 17,500 SF Lot
- Homes in the $750K – $999,999range between averages of 3,800 and 4,150 SF on a 20,000 SF Lot
- Homes in the $1M+ range between averages of 5,000 and 6,000 SF on a 25,000 SF + Lot
Looking at the table above, it can be seen that all price ranges saw an increase in the sales price per SF in the second half of 2017. The Palmetto Bay real estate market is getting more attention these days and this is reflected by the rising prices.
The table below displays the months of inventory. As mentioned before the months of inventory are a great indicator of future real estate behavior. A market that shows between 6 and 9 months of inventory is a stable market where demand and supply are in perfect equilibrium. A market with less than 6 months of inventory is a sellers market in which there is more demand than supply and prices are likely to rise. A buyers market of 9+ months is a market with more supply than demand.
- We see that the $300K – $500K market is a true sellers market
- The $500K – $750K market is between a sellers and a neutral market.
- The $750K market has been a buyers market for most of the year with moments of a very balanced market and the last month even showed a sellers market.
- The market of $1M is a luxury real estate market where the thresholds are between 12 and 18 months for a balanced market. The market here varies between a neutral and a buyers market.
What can we expect from Palmetto Bay Homes in 2018?
We are very bullish on the Palmetto Bay real estate market. The demand for Miami homes is very strong and homes in other desired areas such as Coral Gables, the Grove and Pinecrest are less affordable than homes in Palmetto. Combine this with the excellent schools, lower property taxes and relatively modern and large homes on large lots; we expect Palmetto Bay to become increasingly desired with families