North Coral Gables Single-Family Homes Absorption Rate – August 2012
Buyers and sellers should understand the absorption rates for the neighborhood or area that they are going to be buying or selling a home in.
There is no way to price your Coral Gables home 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 homes available for sale (supply) in a given amount of time.
For example, if 10 homes are sold every month and there are 120 homes available for sale, it will take 12 months to sell all of the homes currently available for sale. This does not take into count the number of homes which will eventually come on the market in addition to those already for sale.
Most “experts” define a level of absorption rate that signifies a “buyer’s market” or a “seller’s market” at 6 months. Anything over 6 months of inventory indicates a “buyer’s market” and anything below indicates a “seller’s market”.
Before we delve into the numbers, it is important to note that the supply of homes available for sale can be measured in a few ways:
Units of Supply includes any unit of inventory that was on the market and has not sold yet. In other words, units of supply includes homes that are UNDER CONTRACT (aka pending sale) as well as those that are active on the marketplace.
Active Supply includes units of inventory currently ACTIVE or accepting BACKUP offers on the marketplace. Active supply does not include homes that are UNDER CONTRACT (aka pending sale).
Months of Inventory – Single-Family Homes
There was approximately 4.6 months of inventory (105 homes available for sale) in the North Coral Gables single-family homes market at the end of August, indicating that we’re in a seller’s market.
Hear that, potential sellers of Coral Gables single-family homes? It’s a seller’s market!
The line graph below shows the level of inventory of single-family homes available for sale in North Coral Gables for the past 2 years.
The chart above clearly illustrates the precipitous decline in the supply of single-family homes available for sale in North Coral Gables.
However, to give you an even better idea as to how drastically supply has changed in just 2 years, note that there were 186 single-family homes available for sale at the end of August 2010 and 126 at the end of August 2011. There were only 105 single-family homes available for sale at the end of last month (August 2012).
That’s a decline of 56.5% in single-family homes inventory in just 2 years.
North Coral Gables Single-Family Homes Prices
The median list price for a single-family home in North Coral Gables was $749,000 ($297/SF) at the end of August. The average list price stood at $983,038 ($337/SF). The line graph below illustrates the median list price in North Coral Gables for the past year.
While distressed inventory for condos (specifically REOs) in North Coral Gables has climbed in recent months, the active single-family homes market is almost devoid of distressed homes at this time.
It’ll be interesting to see if short sale numbers increase now that Fannie Mae and Freddie Mac announced new short sale guidelines allowing homeowners with a Fannie Mae or Freddie Mac mortgage and an eligible hardship to sell their home in a short sale even if they are current on their mortgage .
The average days on market (DOM) for single-family homes listed in North Coral Gables at the end of August was 169. The median days on market was 84 days.
We’re starting to see that single-family homes in North Coral Gables are sitting on the market a little bit longer as we move out of the summer months into the fall season.
If you need guidance buying or selling your Coral Gables home, call me today at 305-491-7179 or send me a note to email@example.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.