The Ponce Davis Real Estate Market in 2018 | Is the Market Picking Up?
In the last few months we have gotten a lot of new listings, many of which were sold within weeks. We also observed that colleagues in the single-family home market are doing a great amount of business. As we speak with agents and buyers on a daily basis we specifically noticed the high demand for (updated) properties in the $1M – $2M range. In short, we feel and hear that the market is really taking up. We therefore decided to check the different neighborhoods to see whether the numbers match our general impression and our recent successes.
Also read our most recent reports about:
Increasing Prices per SF in High Pines and Ponce Davis
We see an impressive increase in properties that sell within the $1M – $2M range and the $3m+ range. The $2M to $3M range is seeing just a slight decrease of 2%. In 2018 we did not see sales of properties below $1Million. The $1M to $2M range also saw an impressive decrease of the total amount of days a property stays on the market before being sold. In the first half a year of 2018 properties in this price range sold almost 50% faster than in the same period in 2017. All other properties also sold faster than in 2017, but with a slightly less impressive percentage.
Low Months of Inventory and an Increasing Market Share of Luxury Properties
Months of inventory is an indicator to show the absorption rate. It shows you how fast current inventory will sell based on prior data. In our example we looked at what sold in the first 6.5 months of 2017 and 2018 (for the $500K range we looked uniquely at sales in 2017) to predict the months to come*. As expected we see a very low amount of inventory. The market of properties below $2M is seeing just 5 months of inventory, which means a sellers market – a market in which there is more demand than supply and prices are likely to go up. The ultra-luxury market of $3M+ properties is seeing 17 months of inventory, which indicates a neutral market (From 18+ months we speak about a buyers market). 17 Months of inventory is a unique happening for a luxury home market.
Are we surprised? No, we are not. We just sold a property in the $2M range that sold in about 3 weeks after listing it, to one of our own clients. Open houses were heavily frequented and we noticed the amount of buyers looking for homes in the area. Not many homes are currently for sale, so needless to say sellers are in a favorable position.
$2M+ properties gained significantly in market share, from 27% to 71%. Properties of $1M – $2M lost in market share, while we also see a low market share of the more affordable listings in the current pool of homes for sale.
*For example the $1M range saw respectively 9 and 7 sales in the first half a year of 2017 and 2018. That is an average of 8 sales per 6.5 months or 1.23 sales per month. The market only offers 6 listings at this moment (speaking of a low inventory). This means that it takes 5 months (rounded up) to sell these 6 listings, because on average we sell 1.23 listings per month.