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Absorption Analysis For South Miami

I published a popular blog awhile back focusing on the benefits of living in South Miami, (find the past post here). As an update to that post, I want to take the time to assess the market by categorizing properties by square footage (under 3,000, between 3,000 – 6,000, and over 6,000 square feet). I did a study to see how the market has changed in the last six months from the previous six-month period, which is helpful to determine if the absorption rate has changed. Changes in the absorption rate can determine where pricing is headed.

South Miami (Under 3,000 sq ft)

# of TransactionsAverage Sold PriceMedian Sold PriceAverage $ / Sq FtAbsoprtion Rate
Last 1-6 months44$527,928$444,500$2842.73 month supply
Last 6-12 months51$527,083$508,000$2742.53 month supply
Based on 20 active sales

South Miami (Between 3,000 sq ft - 6,000 sq ft)

# of TransactionsAverage Sold PriceMedian Sold PriceAverage $ / Sq FtAbsorption Rate
Last 1-6 months10$1,724,000$1,872,500$37013.9 month supply
Last 6-12 months9$1,273,333$1,285,000$31614.5 month supply
Based on 23 active sales

South Miami (Over 6,000 sq ft)

# of TransactionsAverage Sold PriceMedian Sold PriceAverage $ /Sq FtAbsorption Rate
Last 1-6 months0$0$0$00
Last 6-12 months1$2,999,500$0$3100
No active sales

In the under 3,000-square feet category, absorption rates in South Miami have remained more or less stable, with 44 closed sales in the last six months, versus 51 in the previous six-month period (a drop of 13%). This drop in the number of sales is worth noting, but not alarming. Based upon the amount of inventory for sale of 20 properties, there is only a 2.7-month supply of houses for sale, which is still a very strong market for sellers. Prices are up slightly on a per-square-foot basis from $274 to $284/square foot, from the previous six-month term.

Within the segment of homes between 3,000-6,000 square feet, in the last six months, there have been 10 transactions with an average sale price of $1,724,000 amounting to $370 per square foot. In the previous 6 month period, there were 9 transactions with an average sale price of $1,273,333 amounting to $316 per square foot. The level of sales held pretty steady from one period to the next, and while the per-square-foot price was much higher in the most recent 6-month period, there were a couple new construction houses that skewed the overall price points higher. There is a 13.9-month supply right now in this size segment based upon 23 active sales. There was not enough activity in the over 6,000 square feet range to provide any significant insight on that category.

Currently, there are 43 active listings on the market in South Miami. 11 of these are new construction homes, and when priced right, homes in this category move quickly. In fact, 3 newly built residences have sold in the past year. Based on this activity and the numbers mentioned above, I tell my clients that value in South Miami is strong. In large part, I believe that’s due to the plethora of new construction home options which attract savvy investors and families looking to build solid roots with room to grow. Being able to walk to the downtown South Miami area and lots of parks, is a great draw. Reach out to learn more about the generously sized lots, walkable town center, and great nearby schools.

My business has been built on cultivating long-term relationships. Please let me know if I can be of assistance to you and your family, whether renting, buying or selling.

You can reach me directly at 305-793-4783 or Ben@BenMossGroup.com.

Ben specializes in South Florida luxury real estate in the cities and neighborhoods of Coral Gables, South Miami, Pinecrest, Coconut Grove, Miami Beach, South Beach, and Key Biscayne. His track record of success includes significant sales and record breaking transactions in Miami-Dade and Broward County. As a thought leader in South Florida luxury real estate, Ben is regularly featured in local media sharing insights from his comprehensive real estate market reports. Ben also runs the Sports & Entertainment division for ONE Sotheby’s International Realty, having represented hundreds of athletes and entertainers with their real estate needs nationwide. Experience the power of passion aligning with data centered knowledge - reach out to Ben about your upcoming real estate transaction.