-Christina Ross Youngstown
A: Knowing your area’s Absorption Rate, helps track trends. It is the number of months it takes to sell the current real estate inventory at the present rate of sales.
Understanding the market and where it is headed is part of our job as real estate professionals. Absorption rates are NOT an exact science; it is based on the premise one will be looking for a TREND. To track effectively the numbers must be tracked every month.
For example, if 100 homes are sold every month and there are 1200 homes for sale, it will take 12 months to sell all the homes currently for sale. If there are 2400 homes for sale, the absorption rate will be 24 months or 2 years for all the homes to sell. This does not take into count the number of houses which will eventually come on the market along with those already for sale. If you would like to sell in 12 months you need to take the absorption rate into account. In the above scenario with 2400 homes for sale, we know only 1/2 of them will sell in the next 12 months. If you need to sell within the next 12 months you need to price the property in the lower 50% of the price range for similar properties in order for it to sell in the next 12 months. To sell in the next 6 months it would have to be priced in the lower 25% of the competition. If you would like to know what the absorption rate is for your neighborhood call Happy Herald Realty at 954-562-0110 for properties located in Broward or Palm Beach County.
Price Per Square Foot
The
average price per square foot for Boca Raton was $136, an increase of
13.3% compared to the same period last year. The median sales price for
homes in Boca Raton FL for Jan 12 to Mar 12 was $160,000 based on 1,150
home sales. Compared to the same period one year ago, the median home
sales price increased 4.1%, or $6,250, and the number of home sales
increased 5.5%. There are currently 3,358 resale and new homes in Boca
Raton, as well as 2,049 homes in the pre-foreclosure, auction, or
bank-owned stages of the foreclosure process. The average listing price
for homes for sale in Boca Raton FL was $709,783 for the week ending
April 25, which represents a decrease of 1.1%, or $8,125, compared to
the prior week.
The average price per square foot for Fort Lauderdale was $179, a decrease of 67.7% compared to the same period last year. The median sales price for homes in Fort Lauderdale for Jan 12 to Mar 12 was $160,700 based on 1,079 home sales. Compared to the same period one year ago, the median home sales price increased 7.1%, or $10,700, and the number of home sales decreased 21.1%. There are currently 3,611 resale and new homes in Fort Lauderdale on Trulia, including 23 open houses, as well as 3,745 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Fort Lauderdale was $764,223 for the week ending Apr 25, which represents an increase of 0.6%, or $4,221, compared to the prior week. Popular neighborhoods in Fort Lauderdale include Victoria Park and Coral Ridge, with average listing prices of $550,300 and $951,205.
Sell your property quicker and find great buying opportunities.
Now that you are knowledgeable about absorption rates, spend a moment and look at these townhouses: $589,000-$750,000. 2 & 3 bedroom.
2,420 sq. ft. 3200 sq. ft. right on Hillsboro Beach.on the east side of A1A. Spacious two story townhouse with Partial Ocean (not unobstructed), Intracoastal and Pool-garden views from three balconies. Compare theses prices with direct ocean views starting at $1.6 million.
No question this is a great opportunity to own your own beach retreat at an unbelievable price. Pets welcome. Each unit comes with two underground garage spaces and riparian rights to both ocean and Intracoastal, your permanent neighbors.