The Rising Home Values in Palmetto Bay
More and more families are migrating South to Palmetto Bay. Palmetto Bay offers large homes on expansive lots for more affordable prices than in many other desired Miami areas. Located just south of Pinecrest, the area offers easy access to Miami’s best private schools such as Gulliver, Westminster, and Palmer Trinity. Furthermore, Palmetto Bay is still within close proximity of Miami’s main business and financial centers such as Coral Gables and Brickell
Miami has seen an increase in home prices in recent years. It started with rising property values in Coral Gables and Coconut Grove, which led buyers down south to invest in Pinecrest. The increasing demand for Pinecrest homes resulted in growing property prices. Today, families and savvy investors are looking into Palmetto Bay for affordable deals in a growing market.
Values are taken from 2014 till Q1 of 2017 over properties that sold for $200,000 or more
As can be seen from the table above, property values in Palmetto Bay are increasing. We saw a 13.5% increase in the last few years from $181 per SF in 2014 to $206 per SF in the first quarter of 2017. Between January and March 2017, 94 properties were already sold, which is one of the indicators of a growing interest in this market.
In real estate one of the greatest indicators of expected market growth is ‘Months of Inventory’. This indicator measures how long it will take to sell all the current inventory if no new listings will enter the market.
As a general rule of thumb:
- A balanced market shows between 6 and 9 months of inventory
- A sellers market shows less than 6 months of inventory
- A buyers market shows more than 9 months of inventory
The table below shows the months of inventory for Palmetto Bay homes. As you can see in the last three years Palmetto Bay has experienced a sellers market, while occasionally showing a well balanced or neutral market. The first quarter of 2017 also shows a sellers market. A sellers market means that there is more demand than supply, providing the seller with an advantage. A sellers market is seen as an indication of rising prices in the future.
According to the Florida Realtor Association, 23% of the Q4 2016 closed sales in Palmetto Bay were in cash. Also interesting to know is that Palmetto Bay sellers captured 96% of the price in 2016 and 95% of the price in 2017 (Respectively 4 and 5% difference between the average listing and the average sales price per SF). This means that sales prices are not inflated and buyers are willing to pay near asking price.
The average days a property stays on the market before being sold decreased from 108 days in 2016 to 100 days in the first quarter of 2017. This is considered a very healthy market for Miami Dade.