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North Coral Gables Single-Family Homes Absorption Rate – May 2013

ADDED ON June 11, 2013 0 COMMENTS

810 Algeria AveThis is an absorption rate report for single-family homes in North Coral Gables for the month of May 2013.

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.

As a seller, 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”.

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).

We use the Active Supply method to determine the absorption rate, which does not include units that are under contract. We measure units under contract in a separate report that you may find here.

Months of Inventory – Single-Family Homes

There was approximately 3.3 months of homes available for sale in the North Coral Gables single-family homes market at the end of May.

There were approximately 96 single-family homes available for sale at the end of May, 12 more than the 84 homes available for sale at the end of April.

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.

Click here for the latest North Coral Gables Single-Family Homes Market Report.

Although the supply of homes available for sale is up from the previous month, more homes were absorbed in May (29) than in April (26), bringing the absorption rate down to 3.3 months of inventory.

Recent mortgage rate hikes affect the way buyers search for homes. In just six weeks, purchasing power is down 7.5%, according to The Mortgage Reports. A 7.5% reduction in purchase price may mean buyers changing their home search to look for homes with fewer bedrooms, fewer bathrooms, and/or fewer amenities.

North Coral Gables Single-Family Homes Prices

The median list price for a single-family home in North Coral Gables was $669,500 ($324/SF) at the end of May. The average list price stood at $890,173 ($336/SF). The line graph below illustrates the median list price in North Coral Gables for the past year.

Seven (7) of the 96 homes available for sale at the end May were short sales. There were no REOs (commonly referred to as a “foreclosure”) in North Coral Gables listed for sale at the time.

coral gables foreclosures

What do you make of 93% “regular sales” in the North Coral Gables single-family market? That means 93% of the homes available for sale in North Coral Gables at the end of May were NOT distressed i.e., not a short sale or REO.  That’s a telling number, but you won’t hear it on the local news or anywhere else.

Hyper-local information has its privileges. There’s a marked difference between a national economist’s prediction and a local real estate professional looking up the facts and posting them on this site for you to benefit.

The average days on market (DOM) for single-family homes listed in North Coral Gables at the end of May was 101. The median days on market was 62 days.

All real estate is local. Don’t make important decisions like selling your Coral Gables home without knowing your numbers.

Find out how much your home is worth. 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.

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*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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The data relating to real estate for sale on this web site comes in part from the Miami Association of Realtors Regional MLS and is provided here for consumers personal, non-commercial use, It may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Real Estate listings held by brokerage firms other than the office owning this web site are marked. Data provided is deemed reliable but not guaranteed.

This IDX solution is (c) Diverse Solutions 2014.