Residential market activity is a benchmark commonly used by real estate economists to measure supply/demand as they influence pricing, growth potential and residential real estate opportunity.
One indicator used to assess the current market is known as the “rate of absorption,” which is calculated by dividing the number of units currently available by the current month’s sales. It’s generally assumed that any number above six months of inventory suggests downward pressure on sales price, or a “Buyer’s Market.” Any number below six months of inventory suggests upward pressure on home prices or a “Seller’s Market.”
Using this measurement, residential real estate activity in Ponte Vedra during the third quarter of 2016 demonstrated impressive performance, with a listing absorption rate at an average of 5.21 months. Condominiums under $400,000 and single family homes under $400,000 were the two most active sectors, at a combined average of a sizzling 2.67 months of inventory based on current local market demand.
Quarterly Residential Summary
Single Family Homes under $400,000
Monthly inventory absorption averaged 2.7 months of inventory and ended at 2.55, which is cause for strong upward pressure on price for a strong “Seller’s Market” position. Sales price against list price averaged a strong 98.9 percent. The quarter ended with 143 homes available at a price range of $150,000 to $399,900.
Single Family Homes over $400,000
Monthly inventory absorption averaged 7.9 and ended at 5.15 of inventory at current rate of absorption, which is cause for upward pressure on price, gently moving this category into a “Seller’s Market” position. Sales price against list price averaged a strong 96.9 percent. The quarter ended with 412 homes available at a price range of $400,000 to $10,200,000.
Condominiums under $400,000
Monthly inventory absorption averaged 2.64 and ended at 2.52 months of inventory at current rate of absorption, which is cause for strong upward pressure on pricing, or a strong “Seller’s Market” position. Sales price against list price averaged a strong 96.9 percent. The quarter ended with 53 homes available at a price range of $92,000 to $399,500.
Condominiums over $400,000
Monthly inventory absorption averaged 7.6 months and ended at 4.14 of inventory at current rate of absorption, which is cause for strong upward pressure on price, moving the category form a “Buyer’s Market” position to a “Seller’s Market” position. Sales price against list price averaged 97.3 percent. The quarter ended with 412 homes available at a price range of $400,000 to $1,950,000.
Disclaimer: This report includes NEFAR/flexmls statistical data for Ponte Vedra 32081 and Ponte Vedra Beach 32082. Information provided is a real estate trends perspective using NEFAR / flexmls statistical information as of 4/6/16. This report does not intend to project real estate values and should not be used for that purpose.
