South of Fifth Market Stats

It’s almost the end of May and I’m looking at the last six months of Sales activity in the primary Luxury Towers in the South of Fifth neighborhood.  Today there are 82 units on the market and 39 have sold in the past six months. At that rate it would take about 12.5 months for the existing inventory on the market to be absorbed. (the logic is that if 39 units sold in 6 months, 78 would then sell in 12 months, etc).

In a balanced market it would just take between 6-9 months for all the inventory to be absorbed.  Because it is taking longer than average for units to sell, it is a Buyers Market. If it were taking less than 6-9 Months for units to sell, it would be considered a Seller’s Market. In the seven Condominium Towers depicted in this snapshot, 5 of them exhibited signs of a Buyers market, while two of them reflected a balanced market.  None reflected Sellers Market activity.

The three buildings with the lowest absorption rates (S. Pointe Tower, Murano Grande, and Icon) also are selling at the lowest price per square foot, on average, at about $1,200/SF.  Also, two of the buildings, with an absorption rate of about 7 months, exhibit qualities of a balanced market. The three buildings with the highest absorption rates (Murano and both Continuum Towers) are also selling at the highest price per square foot on average, over $2,200/SF for Murano and a combined average of $2,900/SF at the Continuum Towers. All three of these buildings exhibit qualities of a Buyers Market with absorption rates ranging from 16-22 months much higher than what would occur in a balanced market.