Zillow Zestimates Are Dropping — Here’s What’s REALLY Happening (South Florida Edition)

-



If you’ve checked your Zestimate lately and felt that little knot in your stomach… you’re not alone.

Across the country — and right here in Pembroke Pines, Miramar, Cooper City, and the rest of Broward County — homeowners are seeing their online values dip, stall, or jump around from week to week.

So what’s actually going on?

As a full-time realtor since 2004, let me cut through the noise and explain why Zestimates shift, what they mean, and what they DO NOT mean about your home’s true market value.

1. Zestimates Aren’t Market Values - They’re Algorithms

Zillow’s Zestimate is a computer-generated guess, pulling from:

  • Public records

  • Tax assessments

  • Historical data

  • Neighborhood averages

  • Previous listings/photos

But here’s the problem…

Algorithms can’t see your upgrades.
They can’t feel the condition of your home.
They don’t know you replaced the roof, remodeled the kitchen, or installed impact windows.

And in South Florida, condition is everything.

2. Interest Rates Shifted - And Algorithms React

Rates have bounced between 6-8%, which slowed buyer activity earlier in the year.
Less buyer traffic = fewer comparable sales.
Fewer comparable sales = Zillow has worse data to work from.

This causes Zestimate swings that have nothing to do with your home specifically.

3. Absentee Owners & Investors Are Selling - Increasing Inventory

In the last 18 months, Broward has seen a rise in investor-owned property listings.
When landlords offload properties:

  • Prices flatten

  • Zestimates adjust downward to match inventory levels

  • Condition varies widely, confusing the algorithm even more

If three outdated rentals hit the market near your upgraded home, your Zestimate may drop — even if your home is worth more.

4. Local Markets Move Block by Block - But Zillow Uses Wide Zones

Pembroke Pines and Miramar are perfect examples:

  • A home near Silver Lakes may not compare to one in Chapel Trail.

  • A home in Sunset Lakes shouldn’t be compared to one in Monarch Lakes.

  • Cooper City’s school-driven demand doesn’t match Miramar’s rental-heavy pockets.

But Zillow doesn’t always distinguish between micro-neighborhoods.

That’s why values can appear disconnected from reality.

5. The Real Buyers Don’t Use Zestimates to Make Offers

Serious buyers and their agents rely on:

  • Active and pending listings

  • Closed comparable sales

  • Appraisal methodology

  • Condition & upgrades

  • Local neighborhood trends

I’ve never had a buyer say:
“Enrico, I’m offering less because the Zestimate dropped.”

Never.

6. When Zestimates Drop… It Often Means Opportunity

For homeowners aged 60+, empty nesters, and long-time owners considering selling, here’s the good news:

A lower Zestimate can actually trigger more conversations and curiosity in the market. Buyers love feeling like they found a “deal.”

Meanwhile, your home’s real value may be significantly higher.

So What’s the Next Step?

If your Zestimate dipped, here’s what you should do:

✔ Step 1: Get a Local, On-Site Market Evaluation

I evaluate:

  • Condition

  • Upgrades

  • Roof age

  • Insurance impact

  • Neighborhood trends

  • Buyer demand in your subdivision

Zillow can’t.

✔ Step 2: Compare With “Like-Kind” Homes Only

You need a hyper-local CMA - not county-wide averages.

✔ Step 3: Discuss Your Goals

Downsizing?
Relocating?
Retiring?
Turning a rental into cash flow?

Your goals determine the best timing and strategy.

Bottom Line: The Zestimate Is a Starting Point - Not a Verdict

Your home may be worth tens of thousands more than what’s online.

And if you're planning to sell - especially if you're a baby boomer or long-time homeowner looking for a smooth, stress-free transition - let's talk about what today’s market means for your next move!






Location: Miami, FL, USA

Comments

Post a Comment

Popular posts from this blog

Warren Buffett Analysts Call This Trend a Housing Goldmine

-
Image
  Imagine this: You walk through the front door after work. Your dad is teaching your daughter how to make his famous pasta sauce in the kitchen. Your mom is watering plants on the patio. Upstairs, your brother’s finishing up a Zoom call from his home office. Sound a little chaotic? Maybe. But for millions of families across the U.S., multiple generations living together is becoming the new normal. And surprisingly, they love it. According to Berkshire Hathaway HomeServices , backed by Warren Buffett’s legendary market foresight, multigenerational living is poised to become the next big housing trend.  Let’s dive in.  Why More Families Are Living Together in 2025 In 2010, 5.1 million U.S. households were considered multigenerational. By 2020, that number had jumped to 6 million. Today, more than 59 million Americans live in homes shared by multiple adult generations, a number that continues to rise. So, why are so many people turning to multigenerational living? Several f...
Read more

Your Home’s Equity Could Fund What’s Next! 💡

-
Image
  Right now, American homeowners are sitting on a record $11.5 trillion in tappable equity.  That’s equity you could access without selling your home, while keeping at least a 20% cushion in place. And, with interest rates on home equity lines of credit (HELOCs) falling, this may be the most affordable time in years to tap into your home’s value. But does it make sense to borrow now, or should you wait? Let’s break down the numbers, what this trend means for homeowners, and how to know if leveraging your equity is the right move for you. Record-Breaking Equity According to the June 2025 Mortgage Monitor by ICE Mortgage Technology: U.S. homeowners hold $17.6 trillion in total home equity $11.5 trillion of that is considered “tappable”—available for borrowing while maintaining 20% equity The average homeowner has about $212,000 in tappable equity 48 million mortgage holders now have access to this equity, an all-time high Despite all that equity, most homeowners haven’t touche...
Read more

The Biggest Real Estate Forecasts for the Second Half of 2025

-
Image
Can you believe we’re already halfway through 2025? As we head into the second half of the year, a lot of buyers and sellers are asking the same thing: What’s next for the housing market? While no forecast is guaranteed, economists from Fannie Mae, Zillow, NAR, MBA, and others have released updated projections on everything from home prices and mortgage rates to sales activity and market recovery. In this post, I’ve rounded up the key takeaways from their mid-year outlooks—and added a breakdown of what they could mean for our local market here in SW Broward County . Home Price Forecasts Most housing economists agree: prices will rise, but not by much. And depending on where you live, they could even decline. Home price forecasts for 2025: Cotality: +4.3% from April 2025 to April 2026 Fannie Mae: +4.1% in 2025 Home Price Expectations Survey (HPES): +3.3% NAR: +3% in 2025, +4% in 2026 MBA: +1.3% in 2025, <1% in 2026 Zillow: -1.4%, an improvement from its earlier prediction of -...
Read more