Are you looking for a home in Palmetto Bay? Here's a snapshot of what the market is doing lately.
The Absorption Rate is something we real estate agents use to determine how active the market is. We look at the homes sold in the last 12 months and figure out the average per month. Then we look at how many homes are available right now and divide that by the average # of homes sold per month. The resulting number is known as the Absorption Rate and it tells us how many months it would take to sell all the available homes if sales continued at the present pace.
A normal market has an Absorption Rate of about 6 - 10. A smaller number signals a seller's market and a higher number signals a buyer's market. Palmetto Bay is definitely a buyer's market right now. But it is interesting to note that the number has come down in the last 2 years, which is good. Sales have been picking up in all of Miami-Dade county.
It is interesting to note the different absorption rates for each price range. I like to provide data for the different price ranges as it's important to see what's happening in the different price points.
If you look at the luxury homes in Palmetto Bay, there are 23 homes that are priced at a million or more, but in the last year there have been no sales of homes at over a million. So it's impossible to figure out the absorption rate for these higher end homes. Does it mean you can't sell your million dollar home? No, not at all. It just means it will be harder as there don't appear to be any buyers out there in this price range.
If you need real estate information for Palmetto Bay or the neighboring communities, feel free to contact me.
Maggie Dokic, SFR is a licensed real estate broker in the state of Florida selling residential real estate in Miami, Palmetto Bay, Pinecrest, Coral Gables, Gables by the Sea, High Pines, the Redland and other select areas of SW Miami-Dade County.
Maggie has earned her SFR certification to be able to better serve the needs of her customers in today's non-traditional real estate market. SFR is a Short Sale, Foreclosure Resource Specialist. Designees have been trained to understand the highly specialized options available to Sellers facing short sales & foreclosures and Buyers looking to buy them.
For more information on our local real estate market, or to see or sell a home in Miami, Palmetto Bay, Pinecrest, Coral Gables or the Redland, visit my Miami Real Estate blog or contact me at Maggie (at) TheBlogThatAteMiami (dot) com.
The opinions expressed herein, are those of the author, and not necessarily of Keller Williams Realty.
None of this information is to be deemed legal or financial advice. Please contact your attorney or accountant for same.
Maggie - it's interesting, but not surprising, to see the variation in inventory in teh different price ranges. But that is quite a spread, isn't it? Great information for both buyers and sellers.
Jeff
Nice report Maggie ! ...and very nicely presented :o)
Definitely interesting to see how the different price ranges hold up. Was it the same sort of spread this time of year last year ??
Have a nice night !
Sheldon :o)
Maggie, since the rest of Dade county has about a 48 month supply that is great news for the sellers of Palmertto Bay! I am sure your're sellers are happy!
Janie
Hey Little One,
Excellent reporting. Very clearly written. Looks like things are moving a bit better than they were a year ago. I hope this is a signal that we're on to better days ahead.
All the best,
Marlene
Maggie good job on this post, the chart is easy to read and understand. Hope the absorption rate keeps on going down for you.
Your luxury absorption rate is about as miserable as yours but the rest looks phenomenal!
Big LOL @ Renee. Yes, the luxury market is still selling in our county, but apparently not in Palmetto Bay. I will be following up with the other areas that have luxury homes here. Palmetto Bay sales are still brisker than the county as a whole, It's a great area with wonderful schools.
George - from the looks of things, it will continue to stabilize. Thanks!
Marlene - things are moving better around here. I need to post a link to the numbers a year ago. Finding time for it, though, is another matter. LOL
Janie - your numbers must be including condos, which throw a whole new spin on things. But even counting single family homes only, the AR in the county is 28 which is still way higher than it is in Palmetto Bay.
Sheldon - the AR was a bit higher last year, both for the county and Palmetto Bay. I need to provide a link to it. Another thing on my list =)
Jeff - yes! The luxury market in Palmetto Bay definitely exists, but the predominant market is the bread and butter homes in the $300K - 600K range, which is still a lot higher than the average in the county, which I believe has fallen to the low 200's.