January 2019 Is A Buyer’s Market
Property Sales (Sold) – January property sales were 241, down 19.4% from 299 in January of 2018 and 21.2% lower than the 306 sales last month.
Current Inventory (For Sale) – Versus last year, the total number of properties available this month is higher by 296 units of 11.9%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 4.4% compared to the previous month.
Property Under Contract (Pended) – There was an increase of 31.1% in the pended properties in January, with 354 properties versus 270 last month. This month’s pended property sales were 13.7% lower than at this time last year.
The Average Sold Price per Square Footage is Neutral*
The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The January 2019 Average Sold Price per Square Footage of $307 was down 1.3% from $311 last month and down 6.7% from $329 in January of last year.
* Based on 6 month trend – Appreciating/Depreciating/Neutral
The Days on Market Shows Neutral Trend*
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for January 2019 was 100, up 25% from 80 days last month and down 12.3% from 114 days in January of last year.
The Sold/Original List Price Ratio is Falling**
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 91% is the same as last month and up from 1.1% % in January of last year.
* Based on 6 month trend – Upward/Downward/Neutral
** Based on 6 month trend – Rising/Falling/Remains Steady
The Average For Sale Price is Depreciating*
The Average For Sale Price in January was $1,209,000, up 3.7% from $1,166,000 in January of 2018 and down 1.1% from $1,223,000 last month.
The Average Sold Price is Appreciating*
The Average Sold Price in January was $565,000, up 0.2% from $564,000 in January of 2018 and up 0.2% from $564,000 last month.
The Median Sold Price is Appreciating*
The Median Sold Price in January was $347,000, up 5.8% from $328,000 in January of 2018 and up 2.1% from $340,000 last month.
* Based on 6 month trend – Appreciating/Depreciating/Neutral
It is a Buyer’s Market*
A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers.
*Buyer’s market: more than 6 months of inventory, Seller’s market: less than 3 months of inventory, Neutral market: 3 – 6 months of inventory
Months of Inventory based on Closed Sales
The January 2019 Months of Inventory based on Closed Sales of 11.5 was increased by 38.5% compared to last year and up 32.2% compared to last month. January 2019 is Buyer’s market.
Months of Inventory based on Pended Sales
The January 2019 Months of Inventory based on Pended Sales of 7.8 was increased by 28.1% compared to last year and down 21.3% compared to last month. January 2019 is Buyer’s market.
It is a Buyer’s Market*
Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month.
*Buyer’s market: 16.67% and below, Seller’s market: 33.33% and above, Neutral market: 16.67% – 33.33%
Absorption Rate based on Closed Sales
The January 2019 Absorption Rate based on Closed Sales of 8.7 was decreased by 27.4% compared to last year and down 24.4% compared to last month.
Absorption Rate based on Pended Sales
The January 2019 Absorption Rate based on Pended Sales of 12.7 was decreased by 23% compared to last year and up 25.6% compared to last month.
All reports are published February 2019, based on data available at the end of January 2019, except for the today stats. This representation is based in whole or in part on data supplied by the Realtor Association of Miami, the Greater Fort Lauderdale Realtors, or the Southeast Florida Multiple Listing Service (MLS). 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.
