Tag Archives: real estate market statistics

South Beach condos – nothing is selling ?

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I’m sure you’ve heard people say that the real estate market is horrible and nothing is selling.

Well, let’s examine that statement through some statistics.

Total # of condos sold in South Beach (zip 33139):

Year 2006: 1191

Year 2007: 885 (-26%)

Year 2008: 884 (+/- 0%)

2009 YTD: 814 – if Dec 09 ends up being an average month (74 sales) we will finish the year with 888 sales or up 0.5% from 2009

As you can see, the only drastic change was between 2006 and 2007 when the market shifted from unrealistic and irrational boom time behavior to a “normal” market, where people can only buy real estate if they can actually afford it.

What is also interesting is that since 2007 sales have remained VERY steady. Since prices have dropped to pre-boom levels and sales are steady, the only thing preventing a complete recovery is the general economic climate. Once people can find jobs (or remain confident that they will keep their current ones) again, sales will certainly be picking up again.

For details on which South Beach condos sold last month, check out this link.

November 2009 Sobe Sales Stats

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Just a quick update….

Both Oct and Nov showed 72 sales (each) for South Beach condos. Inventory levels have declined slightly from 1754 unit to 1723 units resulting in just under 24 months of unsold inventory so far. While that is still not great news compared to 6 months inventory that are considered to reflect a “balanced” market, it is much better than just 1 year ago when the inventory was at approximately 50 months.

Most indicators remained pretty steady for the past several months, with the only change being that the average list and average sales prices keep declining.

This however does not mean that prices are still declining, but rather that more of the lower end (read: cheaper) inventory gets sold, while luxury condos are finally feeling the pain.