Market Statistics for South Beach Condos-33139

Really Simple Syndication South Florida Real Estate

Market Statistics for South Beach Condos-33139

Oct 3rd 2007

Categories: Front Page, Miami Beach, Real Estate News, South Florida Market Stats

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.

Learn more about South Beach luxury condo absorption rates at The South Beach Real Estate Blog

Continue searching for Miami Beach condos here

This article was written by:

Kevin Tomlinson
kevin@kevintomlinson.com

Miami Beach

You can also contact Kevin by leaving a comment below.

Jonathan Washburn said at October 3rd, 2007 at 6:52 pm
Very good info.
How is this trending over the last year or two? Do you think the absorption rates are going to increase or are we at our peak?
Monica Harvey said at October 3rd, 2007 at 9:12 pm
Great and very useful information to share with my clients, thank you!
Kevin Tomlinson said at October 3rd, 2007 at 10:42 pm
Jon
Inventory will probably climb into 2008. But that is sort of a crystal ball question. It’s not gonna be pretty for a while.
Clearwater Beach Real Estate said at October 3rd, 2007 at 11:12 pm
Kevin – thanks for a real insight into the South Beach Condo Market right now. We’re seeing the same thing on Clearwater Beach too. – Cyndee Haydon
Kevin Tomlinson said at October 3rd, 2007 at 11:19 pm
It’s like that across the country. No different anywhere else.
Norbert Machado said at October 4th, 2007 at 3:20 pm
Hi Kevin, indeed, using a 6 month average is more indicative of the trend. Good job.
Kevin Tomlinson said at October 4th, 2007 at 3:58 pm
Someone left a comment on South Beach Real Estate Blog saying that a 2 month “moving average” would be more accurate. I disagreed by saying with that logic, Jan & Feb activity would give the market a “false high.”

Pick your poison.
Monica said at October 4th, 2007 at 9:26 pm
Kevin – I am surprised to see Icon up there along with Portofino and Yacht Club. Good info.
Kevin Tomlinson said at October 4th, 2007 at 11:57 pm
I was too. ICON owners need to adjust their prices. On average their list prices are about $60 psf higher than Murano Grande’s.
crATE said at October 5th, 2007 at 8:24 pm
i DON;T BELIEVE WARLOCKS ARE STILL BUYING AT THESE PRICES
Kevin Tomlinson said at October 5th, 2007 at 10:07 pm
crATE,

Warlocks?
Greg Horton said at October 9th, 2007 at 12:04 pm
Kevin,

Nice graph. Where did you get it?