Each month the Florida Association of Realtors releases real estate market statistics for each county in the state. These monthly reports are summarized here. Statistics for each month are compiled from all MLS feeds on the 15th day of the following month.
These numbers reflect only property in an MLS system in Florida. They do not include private sales or other transfers of property outside the multiple listing service. Listing input errors by individual agents can effect results. Buyers and sellers should take into account a small margin of error when large increases or decreases occur in a single month period.
The most useful reports for Buyers and Sellers in the South Florida market are trend reports segmented by neighborhood. For neighborhood specific trend reports, please contact me and I can create a custom report for you.
Closed Sales are one of the simplest—yet most important—indicators for the residential real estate market. When comparing Closed Sales across markets of different sizes, we recommend comparing the percent changes in sales rather than the number of sales. Closed Sales (and many other market metrics) are affected by seasonal cycles, so actual trends are more accurately represented by year-over-year changes (i.e. comparing a month’s sales to the amount of sales in the same month in the previous year), rather than changes from one month to the next.
Active Listings – There are a number of ways to define and calculate Inventory. Our method is to simply count the number of active listings on the last day of the month, and hold this number to compare with the same month the following year. Inventory rises when New Listings are outpacing the number of listings that go off-market (regardless of whether they actually sell). Likewise, it falls when New Listings aren’t keeping up with the rate at which homes are going off-market.
Months Supply – An estimate of the number of months it will take to deplete the current Inventory given recent sales rates, MSI is a useful indicator of market conditions. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Anything higher is traditionally a buyers’ market, and anything lower is a sellers’ market. There is no single accepted way of calculating MSI. A common method is to divide current Inventory by the most recent month’s Closed Sales count, but this count is a usually poor predictor of future Closed Sales due to seasonal cycles. To eliminate seasonal effects, we use the 12-month average of monthly Closed Sales instead.