Months’ Supply of Homes in Coral Gables (Part 2) — Luxury Still in a Rut

posted on September 3rd, 2010 filed under: Real Estate Market Data

As the preceding post explained, the months’ supply of homes for sale is an important market barometer.  But the data for the market as a whole may not be all that revealing about the market segment relevant to you.

Vast oversupply continues to plague the market for luxury homes in Coral Gables.  The disparity between the tremendous oversupply in the luxury segment and the merely big oversupply in the broader market has been noted here for quite a while.  Luxury-home prices in Coral Gables have already fallen sharply, yet the continuing extreme oversupply points to significant further price declines.

There are currently 177 single-family homes listed for sale above $1.5 million in Coral Gables.  The number sold in the past month: 6.  That’s about a 30-month supply.

For Miami-Dade County as a whole, there are 864 homes for sale above $1.5 million.  The number sold last month: 21.  A 41-month supply.

The months’ supply normally runs higher in the luxury-home segment than in the broader real estate market.  But if the norm in the broader market is 6 to 8 months’ supply, the norm in the luxury-home segment is about 10 to 12 months.  It is still very much a buyer’s market.

Forecast: a steady downpour of falling prices in the luxury-home market in Coral Gables and Miami.

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posted by // This entry was posted on Friday, September 3rd, 2010 at 10:46 pm and is filed under Real Estate Market Data. You can follow any responses to this entry through the RSS 2.0 feed.

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