MiamiRealEstateKing

Miami-Dade’s Average Closed Price up 3rd month in a row

In real estate on January 10, 2011 at 11:16 am

Well…the Trendgraphix* December, 2010 numbers are in. For the 3rd month in a row, Miami-Dade’s Average Closed Prices went up – this time, a robust 12.4% (up 6.3% in October and 5.7% in November).

The Median Closed Price however, went down by 3.7% to $130,000, giving up all gains from November (at $135,000, up 3.8% from October) and down 10.3% from January’s $145,000.

In addition, Miami-Dade saw a drop in the number of properties Available For Sale (Active Listings) and for the 5th month in a row, a drop in the number of New Listings coming to market.

Moreover, the number of properties Sold (Closed), was up a strong 13.8% with 2,123 units sold compared to November’s 1,865 units sold and up a solid 45.2% over January, 2010’s 1,463 units sold.

Although Pending sales (Under Contract – Not Closed), were down 1.8% over November, they are actually up 19.7% 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 11 months in December, is not only down as compared to November, but also down considerably from January’s 16.6 months (see below chart). We have been hovering around this 11-month level for most of 2010.

Months of Inventory based on Pending Sales also improved from January’s 9.7 months to December’s 7.8 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 hovering around this 8-month 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 24358 24218 23998 23792 23663 24150 23976 24271 24368 23481 23581 23272
New Listing 5228 5015 5885 5538 5011 5432 5466 5395 5234 4849 4411 4337
Sold 1463 1526 2102 1996 1993 2316 2000 2113 2121 1913 1865 2123
Pended 2502 2862 3341 3431 2718 2740 2759 2989 2868 2861 3050 2994
Months of Inventory (Closed Sales) 16.6 15.9 11.4 11.9 11.9 10.4 12 11.5 11.5 12.3 12.6 11
Months of Inventory (Pended Sales) 9.7 8.5 7.2 6.9 8.7 8.8 8.7 8.1 8.5 8.2 7.7 7.8
Absorption Rate (Closed Sales) % 6 6.3 8.8 8.4 8.4 9.6 8.3 8.7 8.7 8.1 7.9 9.1
Absorption Rate (Pended Sales) % 10.3 11.8 13.9 14.4 11.5 11.3 11.5 12.3 11.8 12.2 12.9 12.9
Avg. Sold Price 246 247 292 280 279 297 247 228 217 228 241 271
Sold/List Diff. % 90 90 89 90 91 90 91 91 92 90 91 91
Days on Market 109 108 108 108 100 98 99 95 90 92 92 97
Median 145 140 155 155 160 150 140 130 125 132 135 130

* 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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