North Coral Gables Condos Absorption Rate – June 2012

Buyers and sellers should understand the absorption rates for the neighborhood or area that they are going to be buying or selling a condo in.

There is no way to price your Coral Gables condo for sale correctly without knowing the absorption rate for your neighborhood or area.

The absorption rate is the ability of the real estate market to absorb or sell all of the condo units for sale in a given amount of time.

For example, if 10 condo units are sold every month and there are 120 condo units available for sale, it will take 12 months to sell all of the condo units currently listed for sale. This does not take into count the number of condo units which will eventually come on the market in addition to those already for sale.

If you would like to sell in 6 months, you need to take the absorption rate into account. In the above scenario with 120 condo units for sale, we can estimate that only about 60 of them will sell in the next 6 months. If you need to sell within the next 6 months, you need to price your condo unit in the lower 50% of the price range for similar condo units in order for it to sell in the next 6 months. To sell in the next 3 months it would have to be priced in the lower 25% of the competition.

Months of Inventory – Condo Units

There was approximately 4.1 months of inventory (89 condo units available for sale) in the North Coral Gables condo market at the end of June.

The line graph below shows the level of inventory of condo units available for sale in North Coral Gables for the past year.

You may notice an upward spike in the 7-day rolling average. That’s partly due to a recent surge of REOs (aka foreclosures) in the North Coral Gables condo market.

No less than 13 REOs have been listed in North Coral Gables in the last 30 days. I’m not sure if that means the flood gates will open soon, but we’ve never seen this much distressed inventory in the North Coral Gables condo market.

Call me today at 305-491-7179 or send me an email to adrian@gablesmavens.com for more information on the REOs available for sale in North Coral Gables.

Sellers, take note. An increase in the supply of condo units available for sale (distressed inventory, no less) can affect pricing. If you’re thinking about selling, consider listing your Coral Gables condo for sale now while supply remains low and demand remains strong.

Condo Prices in North Coral Gables

The median list price for a condo in North Coral Gables was $330,000 ($301/SF) at the end of June. The average list price stood at $404,906 ($317/SF). The graph below illustrates the median list price in North Coral Gables for the past year.

Eight (8) of the 89 condo units available for sale at the end of June were short sales. There were 9 REOs (commonly referred to as a “foreclosure”) in North Coral Gables listed for sale at the time.

As stated previously, the number of distressed condo units available for sale in North Coral Gables has risen sharply in the last 30+ days.

The average days on market (DOM) for condo units listed for sale in North Coral Gables at the end of June was 154. The median days on market was 63 days.

If you need guidance buying or selling your Coral Gables condo, call me today at 305-491-7179 or send me a note to adrian@gablesmavens.com. I will be more than glad to offer advice and guidance on current market conditions.

*All information was obtained from the Southeast Florida Multiple Listing Service. Information is deemed reliable, but not guaranteed and is subject to change. Check the date on this report for relevance. If you have questions regarding your home or your particular neighborhood, feel free to contact us for a discreet and accurate opinion. Real estate consumers that read this website are urged to seek independent, legal, real estate and financial advice before engaging in a real estate transaction.

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