Absorption Rate in Juno Beach Jumps
As we pass the midway point of tearing another sheet off the 2012 calendar we are heading straight into the spring buying season here in Southern Florida. The current metrics surrounding the continued improvement we have seen for well over a year are as interesting as ever; foreclosures remain lower than expected, interest rates have made a move to the upside and finding well priced properties is many segments remains a difficult task.
Monthly we take a look in this column at the absorption rates in 5 communities and the trend of that metric is a very important sign as to the current strength of sales when compared to current inventory. The lower the absorption rate the stronger the market favoring sellers and the higher it goes shows the market weakening and favoring buyers. For a complete understanding of the absorption rate and how it effects your property it should be analyzed in relationship to similar properties. While we track a city wide number of all property types it is important to understand that comparing one segment to another in the same city will yield dramatically different results. For instance in Jupiter a single family home in a community like Abacoa will have a far lower absorption rate when comparing it to a single family home in a private equity golf community like The Loxahatchee Club.
This month it is great to report that a majority of our reporting municipalities have seen a decrease in the absorption rate over the last month and here are how things shake out for our March report;
Hobe Sound –
Palm Beach Gardens –
Juno Beach – 36.25 months up from 14.00
While overall we have seen a decline throughout the region bringing up the rear this month is Juno Beach whose rate jumped dramatically. As a small seaside village monthly sales volume can vary dramatically and with those variations come wild swings in the absorption rate as we see this month. Dramatically lower sales combined with an inventory level that grew slightly means the second highest rate we have seen over the past 12 months. At 36.25 months it is far above our 12-month average which currently sits at 20.89 months. Again the trend is more important than the calculation at any point but this is very important information for buyers and sellers of real estate alike.
As an agent who takes great pride in providing my clients all the information they need to make knowledgable decisions this is just one tool used on a daily basis in my business. Perhaps no other information is as valuable when making decisions on many fronts. If a client is looking for the best value we will be drawn to neighborhoods with the highest absorption rates. Another client may be evaluating the current pricing on their listing and there is probably no more important factor they should be considering than the current absorption rate in their neighborhood and what the trend line is doing.
Overall another strong month of recovery with a nice average decrease in absorption rates throughout the area.