North Coral Gables Single-Family Homes Absorption Rate – May 2013
This 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).
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.
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.
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 firstname.lastname@example.org. I will be more than glad to offer advice and guidance on current market conditions.