MiamiRealEstateKing

Miami Beach’s Average Closed Price and Median Closed Price Up

In real estate on January 10, 2011 at 12:56 pm

Well…the Trendgraphix* December, 2010 numbers are in.

For the 1st time since September, 2010, Miami Beach’s Average Closed Prices went up – this time, a robust 73.9%, driven mostly by high-end sale prices. Inparticular, 5310 N. Bay Rd, a house which sold for $9.1M (listed at $10.6M, it closed at $1,011.11 SF or 85.845% of List Price).

The Median Closed Price also rose 37.4% in December to $268,000 (up from November’s $195,000), and up from January’s $256,000 by 4.7%.

In addition, Miami Beach saw a drop in the number of properties Available For Sale (Active Listings), down for the 6th month in a row by 2.4% (down 8.7% from January), and a drop in the number of New Listings coming to market, down for the 4th month in a row by 4.2% from November and down a robust 23.7% from January.

Moreover, the number of properties Sold (Closed), was up 7.3% with 192 units sold compared to November’s 179 units sold and up astrong 17.1% over January, 2010’s 164 units sold.

Pending sales (Under Contract – Not Closed), were also up by 9.3% over November and up 17.9% over January.

Buyers need to understand that property values may be going up on average. With mortgage interest rates also on an upward trend, dancing at or near 5% and up considerably since October, this is no time to hesitate on a purchase decision before being priced-out of the market if you are a borderline case.

Courtesy: Bankrate.com

Sellers on the other hand must understand that this is no time to be thinking the tables have turned and that we are no longer in a Buyer’s market. That could be a costly mistake.

All this activity has caused an improvement in the Months of Inventory based on Closed Sales which, at 17 months in December, is not only down as compared to November, but also down considerably from January’s 21.8 months (see below chart). We have been hovering around the 17-month range since about the 2nd quarter.

Months of Inventory based on Pending Sales also improved from January’s 13.3 months to December’s 10.3 months, both signaling a healthy activity trend. In a “normal” market (neither a seller’s or buyer’s market), it is considered that about 3 months of inventory is healthy. We have been bouncing off an 11-month inventory level for most of 2010.

Date 1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10
For Sale 3572 3638 3665 3610 3527 3608 3571 3560 3522 3390 3342 3261
New Listing 662 620 670 585 569 686 580 594 536 539 527 505
Sold 164 169 251 218 205 254 199 183 198 171 179 192
Pended 268 279 325 322 266 229 274 285 266 256 289 316
Months of Inventory (Closed Sales) 21.8 21.5 14.6 16.6 17.2 14.2 17.9 19.5 17.8 19.8 18.7 17
Months of Inventory (Pended Sales) 13.3 13 11.3 11.2 13.3 15.8 13 12.5 13.2 13.2 11.6 10.3
Absorption Rate (Closed Sales) % 4.6 4.6 6.8 6 5.8 7 5.6 5.1 5.6 5 5.4 5.9
Absorption Rate (Pended Sales) % 7.5 7.7 8.9 8.9 7.5 6.3 7.7 8 7.6 7.6 8.6 9.7
Avg. Active Price 958 943 917 904 858 852 862 870 879 916 963 972
Avg. Sold Price 469 524 464 536 484 699 419 337 424 406 349 607
Avg. Sq. Ft. Price 360 392 365 412 393 498 340 282 351 343 329 420
Sold/List Diff. % 86 88 89 87 90 85 90 90 88 85 91 91
Days on Market 132 131 121 140 124 124 129 118 123 123 117 136
Median 256 252 262 240 240 230 185 200 189 186 195 268

* All reports are published January 2011, based on data available at the end of December 2010. This representation is based in whole or in part on data supplied by Realtor Association of Greater Miami and the Beaches, Realtor Association of Miami-Dade County, Realtor Association of Greater Fort Lauderdale and Northwestern Dade Association of Realtors. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market.

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