Martin County Florida Condo Market Report for February 2012

Commentary:

Much like the residential segment of the Martin County real estate market, the Martin County Florida Condo Market Report for February 2012 showed modest increases for February of 2012. Sales for February were a respectable 57 units, up by 3 from February of 2011 (54 units) and also up from January which had 37 sales. On a negative note, the median sales price took a dive to $85,000.  This is most likely a reflection of the mix of condos that sold in February as opposed to a big drop in values.  More of the lower priced mainland condos were the ones that drove down the median price.

The inventory continues to decline and is now down to 640 condos, which is down from 664 units last month and from 772 condos in February of 2011.  This is the lowest inventory since November of 2005 which was prior to the ‘bubble’.  A decreased inventory will trigger an increase in demand as the supply of existing units just isn’t available increasing the urgency for buyers.

The one month absorption rate is now at 11.23 months, while the three month average is at 13.54 months.  Considerably better than the 14.3 and 15.51 months of February 2011. We still need to see 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 February 2012

the Gabe Sanders real estate team

Condo Homes, Condos and Land
Waterfront and Golf Course Communities in Martin and Saint Lucie Counties

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Martin County Florida Condo Market Report for February 2012