Miami Beach Real Estate Market Reports for Luxury South Beach Condos- Absorption Rates-33139
With the real estate market in a state of flux, absorption rates are increasingly used as an indicator to assess how long it would take to sell ALL the existing condos in each condominium, assuming the rate of sales stays constant and no new listings are added to the inventory. Additionally, absorption rates are the best way of tracking market performance. They are usually used to indicate “overall real estate market performance,” or how an entire market is doing.
To calculate monthly absorption rate, I have taken all the condos that are currently on the market in each building in the South of Fifth Street (SoFi) neighborhood of South Beach, and divided them by the number of listings that have sold in their respective condo in the past six months and divided that number by six. Many people compute absorption rates by using the number of sales in a one month period, but I use a six month sales average so it “smoothes” the seasonal “peaks and valleys” to gauge the true overall activity.
The data was based on information from the Southeast Florida Regional (SEFR) MLS or from the associations participating in the SEFR for the period 1/1/07 through 9/3/2007.
Here’s the math:
Number of listings: 40
Number of sales in the last six months: 8
8 divided by 6= 1.33 sales per month
Number of listings: 40 divided by number of sales per month: 1.33= 30 months of supply
Key for South Beach Condos-Absorption Rates
The chart below illustrates the absorption rates for the Continuum, Murano at Portofino, Murano Grande, ICON South Beach, Portofino Tower, Yacht Club at Portofino, and South Pointe Tower, and shows how each building is performing relative to the amount of inventory and the amount of sales.
Red Hot Condo Buyers Market in South Beach
From the graph it is clear the Portofino Tower is a “red hot” buyers market with 34 months of inventory. Also, ICON and Yacht Club at Portofino are good condominiums to focus on as well. A balanced market is generally anywhere between six to nine months of inventory, anything above nine months is considered a buyers market.
What Does This Mean for Miami Beach Condo Sellers?
If you are looking to sell your Miami Beach real estate, make sure your prospective real estate broker keeps you informed about the market conditions in your specific area and building. Knowing the absorption rate for your South Beach condo will help you determine how aggressive you need to be with pricing, staging, and marketing your condo to maximize the likelihood of a prompt sale!
South Beach Luxury Condos in 33139: Continuum, Murano at Portofino, Murano Grande, ICON South Beach, Portofino Tower, Yacht Club at Portofino, South Pointe Tower
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