South of Fifth Market Stats
Categories: Miami Beach, Real Estate News, South Florida Market Stats
hiI’ve been looking at absorption rates, the amount of time it takes to sell off the currently available Condominium inventory at a rate of sales equal to the average of the last three months.
In Miami Beach we can quantify this in many different markets. Overall, there are currently 4,000 plus properties on the market selling at a rate of about 65 per month for an absorption rate of 61.5 months. For the least expensive condos, those under $250,000, the absorptions rate is the lowest at 43 months, while those units between $500,000 and $1,000,000 have the highest absorption rate of 81 months. Condos priced over $1,000,000 have an absorption rate somewhere between these two. A six to twelve month inventory is the level generally desired to produce a balanced market, so we are still way out of balance.
In the South of Fifth neighborhood, where many of the most expensive units on Miami Beach are available for sale, and many sell for more than $1,000,000, there is still a big variance in how different buildings are performing. The chart below shows the absorption rate for each of six SoFi buildings based on April 1, 2008 units for sale and the prior three month sales data.
As you can see from the chart below the best performance was by the Icon and Continuum which had 18 and 22 month absorption rates, followed by the Courts and Yacht Club which had slightly over two year absorption rates, and then by Murano Grande and Murano which were 4.5 and 5.5 years respectively.
While I know that such isolated data may not present a valid statistical sample, it nonetheless tells me that some very good units in a desirable neighborhood are selling much better than the overall averages.
Very informative. I like the manner in which you presented the information. Keep it up!