Palmetto Bay Market Report & Absorption Rate

Are you looking for a home in Palmetto Bay? Here's a snapshot of what the market is doing lately.

The Absorption Rate is something we real estate agents use to determine how active the market is. We look at the homes sold in the last 12 months and figure out the average per month. Then we look at how many homes are available right now and divide that by the average # of homes sold per month. The resulting number is known as the Absorption Rate and it tells us how many months it would take to sell all the available homes if sales continued at the present pace.

A normal market has an Absorption Rate of about 6 - 10. A smaller number signals a seller's market and a higher number signals a buyer's market. Palmetto Bay is definitely a buyer's market right now. But it is interesting to note that the number has come down in the last 2 years, which is good. Sales have been picking up in all of Miami-Dade county.

It is interesting to note the different absorption rates for each price range. I like to provide data for the different price ranges as it's important to see what's happening in the different price points.

If you look at the luxury homes in Palmetto Bay, there are 23 homes that are priced at a million or more, but in the last year there have been no sales of homes at over a million. So it's impossible to figure out the absorption rate for these higher end homes. Does it mean you can't sell your million dollar home? No, not at all. It just means it will be harder as there don't appear to be any buyers out there in this price range.

If you need real estate information for Palmetto Bay or the neighboring communities, feel free to contact me.