The Palmetto Bay Real Estate market update for August featured a common trend among active listings: price reductions. 19% of the active listings in Palmetto Bay reduced their list prices. The number of homes that reduced their list price was double the number of reductions during the prior month of July.
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. At the end of August there were 163 homes for sale. During the month of August there were 30 closed sales. The For Sale numbers we down almost 5%, compared to the prior month. When compared to a year ago, the number of homes for sale are up 39%. The number of closed sales in August was up 15% from the month of July.
Compared to the month of July, the number of properties under contract was slightly down. This has been a trend over the past four months. Each month the number of pending contracts is slightly lower compared to the prior month. In August 27 homes went under contract, down 1 from the month before.
The average sale price per square foot for August bounced back! August was the second highest sale price per square foot value of the year at $221. Since January the average sale price per square foot has fluctuated between $195 and the low $220s, depending on the month. .
While a positive month for sale values, do not expect that amount to be a consistent trend. Last time the sale price per square foot was that high, in April, the following month’s sale price per square foot was $30 per square foot less. The same happened in July & August of 2015, when values dropped significantly from one month to the next. You should expect to see values in the low $200’s to $190’s for the month of September.
The real estate market months of inventory was down at the end of August. The current inventory supply is 5.4 months. That is an 18% decrease from the month before.
As I mentioned in my last newsletter, I was expecting to see price reductions in August, and almost 1 in 5 homes reduced their asking prices. Palmetto Bay also had the lowest number of new listings in 6 months. The sale price per square foot values were good, but they came at the cost of time on the market. Homes that listed closer to the $190-$210 range sold in less than three months, while the average for other homes was over 100 days.
Are you thinking of selling or buying your next home? Do you know someone who is ready to make their next move? Contact Adrian at 305.281.1377 or via email at firstname.lastname@example.org for more information on the Palmetto Bay Real Estate market and the valuable services he can provide you.