The activity in the Coral Gables real estate market has picked up dramatically in the past few months. Buyers are sensing that the bottom is near, or more likely has passed. So do the agents. Yet sensing or feeling don’t tell the whole story, but the data can certainly show the trend. Let’s take a look at the leading indicators…
A market economy is based on supply and demand.
Let’s take a look at supply first. In real estate, supply is most often indicated by months of inventory, which is calculated by dividing the number of homes being bought, by the number on the market (absorption) to see how many months of current inventory are on the market. A high number of homes indicates a buyer’s market (many homes to choose from) and a low inventory indicates a seller’s market (supply is low compared to demand.)
Over the past year, the Real Estate Inventory in Coral Gables has decreased by 60%!
A Buyer’s Market exists when the inventory is over six months. A Seller’s Market exists when the inventory is less than four months. Right now, we have just over six months of inventory, still a buyer’s market, but just barely. Based on this data, the time to buy is NOW before we fully shift to a seller’s market.
Pending homes sales are contributing to this decreased inventory of Coral Gables single family homes
Final Test: As inventory decreases, prices will normally begin to inch up based on supply and demand. Let’s see if that is the case in the Coral Gables real estate market.
Yes, prices are on the rise! If you have been waiting on the fence to buy, these three sets of data show a clear picture that the turning point in the Coral Gables Real Estate market was the Fall of 2010. Since then, inventory has had a steady decrease, pending home sales and median home price a steady increase. The market is still great, but changing rapidly.
It’s time to get off the fence and begin to look in earnest for your new Coral Gables home!