Martin County Florida Condo Market Report for January 2012
Commentary:
Much like the residential segment of the Martin County real estate market, the Martin CountyFlorida Condo Market Report for January 2012 retreated for the first month of 2012. Sales for January were an anemic 37 units, down from January of 2011 (42 units) and also off from December which had 52 sales. On a positive note, the median sales price was at it’s highest level in over a year. Unfortunately, I don’t believe that this represents a rise in prices, but rather the mix of types of units that have sold. There is still too much inventory in some segments to sustain a continued rise in prices, though we are reaching very near the bottom of the market, if we haven’t already passed it.
The inventory is now down to 664 condos, which is down from 673 last month and from 774 in January of 2011. A decreased inventory generally will trigger an increase in demand as the supply of existing units just isn’t available increasing the urgency for buyers.
Unfortunately the absorption rate remains troubling on the higher end, with January’s one month value of almost 18 months and the three month moving average is now up to 16.2 months. said another way, it’s averaging well over a year for the average condo to sell in Martin County, Florida. We need to get the absorption rate below 9 months for a healthy market and down to 6 or 7 months to be considered a balanced one.
The big uncertainty that remains is the economy. We believe that if we have any sustained good news, we will see a pretty good rush on the market which will be a nice change from the present. For the longer term, even though we have the best mortgage rates in history at the moment, inflation is making news and this is not good for rates down the line. The Fed is working hard to keep rates down, but for how long, we’re just not to sure.
Our outlook for Martin County is fairly positive as for buyers, prices and rates remain very attractive. For sellers, it doesn’t look like we’re going to see any significant improvements soon, so if you need to sell, you may be better off now than possibly in the near future.
Click on the individual charts to see charts in expanded mode.
The Definition of Absorption Rate:
Number of months it takes to sell the current inventory at the present rate of sales. Knowing your area’s Absorption Rate, helps to track trends. Understanding the market and where it is headed is part of our job as real estate professionals. Absorption rate is NOT an exact science. Figuring it is based on the premise that one will be looking for a TREND. It is advised to consistently do the numbers each month, to be able to track a trend.
Data compiled from the Realtor Association of Martin County
See the full set of charts at Treasure Coast FL Homes
Martin County Florida Condo Market Report for January 2012
the Gabe Sanders real estate team
Condo Homes, Condos and Land
Waterfront and Golf Course Communities in Martin and Saint Lucie Counties
For more information about Florida’s Treasure Coast Real Estate, visit us at:
Stuart Florida Real Estate or Treasure Coast FL Homes
Related entries:
- Condominium Market Report for January 2011 in Martin County, Florida (31.6)
- Residential Market Report for January 2011 in Martin County, Florida (29.8)
- Condominium Market Report for February 2011 in Martin County, Florida (27.8)
- Martin County Florida Condo Market Report for December 2011 (27.4)
- Martin County Florida Condo Market Report for July 2011 (26.8)
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