In June the biggest trend in the Palmetto Bay real estate market was the increase in closed sales from the prior month. 35 single family homes sold in June compared to 24 single family home sales in May. That is an increase of 45.8%. Last month I wrote about the dramatic increase in months of inventory [Read that article here]. The increase in months of inventory in May was a cause for close observation because if accompanied by a decrease in the number of sales then the implication is that the market is taking a downturn.
The good news is that the dramatic increase in inventory during last month was followed by significant increase in closed sales!
One of the first numbers to look at when analyzing the market is the latest For Sale and Sold numbers. These give you an indication of what the absorption rate is, which in turn gives an idea of how buyers are behaving within the current market conditions [What is the absorption rate?] At the end of June there were 170 homes for sale. During the month of June there were 35 closed sales. The For Sale numbers are up by 2.4% compared to the 166 homes for sale at the end of May. The number of closed sales in June was up 45.8% compared to May, a month that had 24 closed sales.
Compared to the month of June 2015, the number of properties for sale for June 2016 were up 60.4% and the number of closed sales were up 20.7%. The number of properties for sale is the highest in the past 15 months.
The average sale price per square foot during June tied the month of February for second highest average this year. Since January the average sale price per square foot has fluctuated between $195 and the low $220’s, depending on the month. In June the average sale price per square foot was $202. That is up $10 dollars per square foot from the average of $192 in May.
Last month I wrote about the importance of watching the price per square foot in relation to the months of inventory, absorption rate, and the number of homes for sale. The concern then was an increasing inventory with lower sale price per square foot prices.
The good news is that with an increase in both closed sales, sales price per square foot, as well as a slight increase in inventory, the market remained neutral for both buyers and sellers.
The Palmetto Bay months of inventory was down in June compared to May. In June the months of inventory based on closed sales was 4.9. That is down 28.9% compared to the prior month.
If you currently have your home listed for sale you should ask your agent for the latest sale numbers in Palmetto Bay and evaluate your listings performance.
Questions to ask: Are you priced right? How long have you been on the market? Should you consider an asking price decrease? Are you getting the right amount of interest in your property for the amount of time you have been on the market? Pricing in a changing market is always a factor in attracting the right buyer.
Last month there were 38 price decreases. The average price decrease was 7.11% These price reductions were likely a reaction to the dramatic increase in inventory in May. Consider reducing your price if you have been listed for more than 65 days and received little interest.
Remain patient during your property search. Keep looking with the knowledge that the market adjustments occurring right now are inching toward an eventual buyer’s market. Pay attention to the market trends over the next six weeks to see if they are outside of the normal market activity of the past 12 months. Use your knowledge of the numbers to your advantage when negotiating the price on your next Palmetto Bay property.
An increase in the inventory will present new opportunities for you. Last month 22% of the market decreased their list price by an average of 7%. June ended with a higher inventory than May. Pay attention to the price decreases this month because they may bring homes previously outside your budget to within reach.
For more information on the Palmetto Bay Real Estate market, contact Adrian at email@example.com and directly at 305.281.1377.