This is a 3rd Quarter Real Estate Market Update for single-family homes in the 33134 zip code of Coral Gables.
It's officially a Buyer's Market.
Been a while since we've heard those words around these parts, but we have the facts and they show that there are 6.88 months of supply in the 33134 zip code of Coral Gables.
Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. Generally-speaking, buyers have more negotiating leverage than sellers in a Buyer's Market.
The good news for sellers is that prices are still up despite a decrease in demand and an increase in the supply of homes available for sale in the year-over-year analysis.
The 162 active listings at the end of September 2016 represented a 21% increase over the end of September 2015. Buyers today have more homes to choose from than they did a year ago.
Pending listings (homes under contract) were slightly down, with the 180 pending listings at the end of September 2016 indicating a slight 1.6% decrease over the end of September 2015. Actual sales of single-family homes also decreased over the same period.
Single-Family Home Sales
The Southeast Florida Multiple Listing Service (MLS) and CoreLogic Realist® report that at the end of September 2016 a total of 212 single-family homes sold in the 33134 zip code of Coral Gables. This represents a 7.4% decrease over sales at the end of September 2015 and the lowest number of home sales over the first 3 quarters of the calendar year since 2012.
Prices for single-family homes in the 33134 zip code of Coral Gables have continued to climb. The median price of a single-family home increased 8.9% from the end of September 2015 to $708,000 at the end of September 2016. Average single-family home prices rose 5.2% to $859,455.
Meanwhile, the dollar volume of sales decreased 2.6%. In total, $182,204,400 worth of single-family homes sold in the first 3 quarters of 2016.
Absorption Rates and Days on Market
The graph above demonstrates how certain segments of the market are still active. In fact, homes in certain price ranges are being absorbed at a greater than normal rate.
Homes under $600,000 are in highest demand and are being absorbed at a quicker than normal rate. Over 37% of the 212 home sales which have taken place so far this year have sold for under $600,000. Another 30% sold between $600,000 and $900,000 with an average absorption rate of 8.3 months.
Homes between $900,000 and $1.25M accounted for 18% of home sales with an average absorption rate of 5.3 months, while homes above $1.25M accounted for just 14.2% of home sales at an average absorption rate of 15.6 months.
Homes sold in the first 3 quarters of 2016 spent an average of 121 days on the market, which is 26% longer than homes sold in the first 3 quarters of 2015.
Tips For Buyers
If you're in the market to buy a single-family home in Coral Gables (or any other area for that matter), it's important to know and understand the hyper-local market statistics for the type of home you're interested in.
An agent (or a team of agents) who specializes in your area of interest can gather and help you break down the information you need to gain insight on a particular area.
Knowing what type of market you're in allows you to develop an effective negotiation strategy that leads to results. Should you offer 10% less than the list price or 5% above asking price? Should you request that the seller pay for all of your closing costs, a portion, or none at all? Should you offer to close in 60 days or 30?
Working with an experienced agent that can help you navigate these sometimes treacherous waters can mean the difference between securing your dream home or insulting and alienating a seller with a "lowball" offer.
Tips For Sellers
When the supply of homes available for sale swells and your competition for buyers increases, it's important that you do ALL of the things necessary to get the highest price possible in the shortest amount of time with the least amount of worry and inconvenience:
2. Price your home correctly from the get go.
Executing these 3 steps with the help of an experienced team of marketers and agents results in a very successful home selling experience.
Ready to move up or out, but not sure if it's the right time to buy or sell?
Contact us today. We can help you design a viable plan for selling and moving within your desired time frame.
Before you go...
50 top tips to sell your home for the most money in the least amount of time.
Overpricing a home to "test the market" is one of the biggest mistakes any seller can make. Here's how to avoid that.
Exposure, exposure, exposure in the right places presented in the right way. That's how you sell for top dollar.