North Coral Gables Condos Absorption Rate – February 2013
This is an absorption rate report for condos in North Coral Gables for the month of February 2013.
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.
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 condos 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 condos 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 condos that are UNDER CONTRACT (aka pending sale).
Months of Inventory – Condo Units
There was approximately 8.7 months of inventory in the North Coral Gables condo market at the end of February.
There were approximately 87 condos available for sale at the end of February.
The line graph below shows the level of inventory of condos available for sale in North Coral Gables for the past 2 years.
Although the supply of condos has risen slightly since the beginning of the new year, the number of condos available for sale in North Coral Gables remains historically low.
Basic economics tells us that as the supply of condos available for sale increases, prices flatten or go down. Low supply and high demand continue to drive up prices in the Coral Gables real estate market.
North Coral Gables Condo Prices
The median list price for a condo in North Coral Gables was $399,000 ($331/SF) at the end of February. The average list price stood at $459,540 ($341/SF). The line graph below illustrates the median list price for condos in North Coral Gables for the past year.
As the supply of condos available for sale diminishes, the median list price has continued to increase.
Click here for the 2012 North Coral Gables Condo Market Report and see for yourself how the condo market fared in 2012.
The average days on market (DOM) for condos listed in North Coral Gables at the end of February was 132. The median days on market was 52 days.
All real estate is local. Don’t make important decisions like selling your Coral Gables condo without knowing your numbers.
Find out how much your condo is worth. Call me today at 305-491-7179 or send me a note to firstname.lastname@example.org. I will be more than glad to offer advice and guidance on current market conditions.