Archive for February, 2009
Sold in North Grove | 1809 Micanopy Avenue
February 16th, 2009 | categories: Coconut Grove Real Estate
My listing at 1809 Micanopy closed last week after being on the market for over 2 years. I took over the listing from another agent in March of 2008 and probably showed the house over 80 times. It isn’t uncommon right now for a home that needs quite a bit of updating to take so long to sell.
The listing price on this home at the time it went under contract was $799,000 and it sold for $685,000. The sale price per square foot was $219.00. It had 3,127 square feet of living area, a 6,750 size lot, 4 bedrooms, 3.5 baths, and no garage or swimming pool. It was located on a beautiful cul-de-sac in North Coconut Grove and had large, open spaces with a nice screened patio.
Waterfront in the Grove
February 15th, 2009 | categories: Coconut Grove Real Estate
Something that makes Coconut Grove so great is that our waterfront is not taken up strictly by residential real estate. Think about all the ways that Coconut Grove residents get access to the water. Beginning up North at Alice Wainwright Park, further south to Vizcaya, then Kennedy Park, then Monty’s, Chart House, Scotty’s Landing, Dinner Key Marina and ending at Peacock Park.
Living in the South Grove, I often take my daughter along the Commodore Bike Trail to look at the water views from Peacock Park, then we head over to Dinner Key Marina to see the boats.
Sure our waterfront isn’t what it could be. I wish we had a few more dining options on the Bay, and maybe a great boardwalk like the one that is proposed in the Master Waterfront Plan. And there are and always will be developers trying to build big high rises and office buildings directly on the water which would block our views. But there are many dedicated Grove-ites who passionately care about preserving this village and its future who have fought hard against them and won.
I would say all in all I am happy with what our waterfront has available to us. I feel that I have plenty of access to the water and take advantage of it.
Today’s Buyers Are Not Crazy
February 13th, 2009 | categories: Buying Real Estate in Coconut Grove
I was reading an article by David Bach author of Start Late, Finish Rich on buying a home in today’s market. He had some simple points about why home-ownership is still a good long-term decision. 
According to David, some important things for buyers to keep in mind are:
- Home-ownership is a solid long-term investment. In fact, it is the best long term investment you can make.
- Historically, home prices rise. Even though nationally home prices fell 6% last year, the average historical annual appreciation rate for the typical home is 4.3%. If you plan to stay in your home for a couple of years, you will see an increase in value.
- What the market is doing nationally is irrelevant to you. The media refers to a “nationwide housing slump”, but as David puts so clearly….real estate isn’t national – its local!
- Don’t time the market. Its not about timing the market, its about time spent IN the market. If you are making a long term purchase you are better off getting in now.
A Tidal Wave Of Foreclosure Activity
February 12th, 2009 | categories: Coconut Grove Real Estate, What Is Selling In Coconut Grove Real Estate?
Similar to last year, January was a very slow month for Coconut Grove real estate. The number of closed sales in any given month is really indicative of the amount of activity in the previous 2 months because it takes 4-8 weeks for a property to close. Combine Thanksgiving, the holidays and the economic crisis, and you should not be surprised that we ended up with only 3 single family closed sales in January (there were 4 closed sales in January of 2008).
A very alarming trend is that 6 of the 8 of the pending sales this year have been distressed properties. 5 of them were foreclosures, and 1 was a short sale.
January 2009 Single Family Closed Sales:
- 1735 Fairhaven Place | List Price $1,425,000 | Sale Price: $1,250,000 | Sold For Land Value | Corner Canal Lot | Not a Foreclosure or Short Sale
- 2520 Swanson Avenue | List Price $650,000 | Sale Price: $565,000 | 1,860 Square Feet LA | 7,722 Lot | 3 Beds/2 Bath | Not a Foreclosure or Short Sale
- 3521 Crystal View Court | List Price: $599,000 | Sale Price: $530,000 | 1,555 Square Feet LA | 5,600 Lot | 3 Beds/2 Bath | This was a Short Sale
2009 Pending Sales To Date:
- 4231 Justison Court | List Price: $899,000 | 4,254 Square Feet LA | 9,980 Lot | 4 Beds/4 Bath | This is a foreclosure.
- 3625 Battersea Road | List Price: $799,900 | 3,078 Square Feet LA | 10,500 Lot | 5 Beds/3 Bath | This is not a short sale or foreclosure
- 1809 Micanopy Avenue | List Price: $799,000 | 3,127 Square Feet LA | 6,750 Lot | 4 Beds/3.5 Bath | This is not a short sale or foreclosure.
- 1835 Opechee Drive | List Price: $625,000 | 3,359 Square Feet LA | 14,150 Lot | 7 Beds/5 Baths | This is a foreclosure and word on the street is that after being on the market only 1 day and having 10 offers presented, the bank accepted one that was rumored to be $200,000 over list price. See more about this property here.
- 3661 North Prospect Drive | List Price: $578,650 | 2,218 Square Feet LA | 11,270 Lot | 3 Beds/2 Baths | This is a foreclosure.
- 1750 Tigertail Avenue | List Price: $569,900 | 3,249 Square Feet LA | 3 Beds/2 Baths | This is a foreclosure.
- 3699 Loquat Avenue | List Price: $320,000 | 2,052 Square Feet LA | 3,932 Lot | 3 Beds/3 Baths | This is a foreclosure.
- 4180 Pomona Avenue | List Price: $300,000 | No Square Footage or Lot Size listed | This is a short sale.
You will see that only one of the closed and pending sales this year have been over $1,000,000. This might have something to do with the high down payment requirements for Jumbo Loans (over $417,000), see yesterday’s post.
Click here to read more about what is selling in Coconut Grove real estate.
This time, its not about the rates….
February 11th, 2009 | categories: Coconut Grove Real Estate Market Conditions
So interest rates are at all time lows and people should be beating down the door to buy your house, right? Wrong. Maybe for the first time in history, buying a home is not about the interest rates. Right now the question buyers must ask is whether or not they have enough money for the down payment.
I just had a meeting with James Venney and he informed me that yesterday the down payment requirement rose from 25% to 30% for Jumbo Loans (any loan amount over $417,000). In recent times (during the real estate boom), there was a very low down payment requirement or even none at all. Down payments were a non-issue.
Check out the below charts which show the trend lines for mortgage rates between the end of 2002 through 2008. Then take a look at the Sold and Pending numbers for homes in zip code 33133 during the same time period.
You will see that in the second quarter of 2004 when interest rates dropped, home sales rose. And as would be expected, in the second quarter of 2005 when interest rates rose, home sales dropped.
The fascinating thing is to take a look at the second half of 2007 when interest rates began to drop again, we saw home sales continue to fall in 33133. And fall, and fall. In the beginning of January/February of 2008 when we saw more low rates, the number of sales still fell.
Why has basic economics failed us? I believe that its all about the down payment. Buyers aren’t so concerned right now with whether interest rates have risen or fallen 1-2%, but they ARE concerned about how much cash they need to put into their home. With the average price of a home in Coconut Grove around $1,000,000 – buyers here looking in that price range are now required to put down $300,000 for a Jumbo Loan.
Due to the unique nature of home buyers here in South Florida and our high home prices we might not see a turnaround in home sales until the down payment requirements fall.
Click here to read other Coconut Grove Real Estate News.
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Perfect Condition | New Listing In South Coconut Grove
February 10th, 2009 | categories: New Listings in the Grove
I just listed this house at 4070 Matheson Avenue in South Coconut Grove at $695,000. In this price range it is hard to find a home in better condition. The windows are all impact glass, the pool has just been refinished, the roof and AC systems are new, the kitchen has been completely renovated with high end appliances and the floors have been replaced. This home is located on a very private street which dead ends at Merrie Christmas Park.
Details of the House:
- 1,654 Living Area
- 1,911 Total Living Area
- 6,480 Square Foot Lot
- 3 Bedrooms, 2 Baths
- Offerring Price: $695,000
If you are interested in seeing this house it is very easy to show, just give me a call at 305.342.1623 or send me a note here.
You may also be interested in: What Is Selling in Coconut Grove?
Straight from the horses mouth…
February 9th, 2009 | categories: Buying Real Estate in Coconut Grove
In my daily read this morning I saw that James posted some useful information on Jumbo Loans (any loan over $417,000). Since the average price of a home in Coconut Grove is about $1,000,000, most buyers here must qualify for a Jumbo Loan.
You may be surprised to know that through Wells Fargo, James is still offering fixed, adjustable and interest only loans with rates starting as low as 5%.
In his post, James lists the 3 requirements for Jumbo Loans:
- You will need to make a minimum of a 30% down payment or have 25% equity in your home in the case of a refinance.
- You will need to be able to fully document your income and liquid assets to be used for the purchase or refinance.
- Your median credit score will need to be greater than 700.
If you have any questions about Jumbo loans feel free to give James Venney a call at 305.960.2671, or send him a note here.
Once Upon A Time…
February 8th, 2009 | categories: Coconut Grove Real Estate, Coconut Grove Real Estate Market Conditions
Once upon a time in the land of Coconut Grove I had a buyer who offered $1,300,000 on this house on Battersea Road. The house is on a double lot and was attractive to my buyer because he could tear it down and build 2 new houses. The sellers turned down the $1,300,000 offer and today have re-listed the property at $879,000.
These are the types of sellers who are getting punished the most in this market. Those with old homes and large lots once sat on a gold mine as developers fell all over themselves trying to buy up all the land in Coconut Grove. Now it is being sold for exactly what it is, an older house that needs a lot of updating and sits on a large lot in South Grove.
Don’t get me wrong, this house has some great redeeming qualities. It has a beautiful pool, is surrounded by several gorgeous oaks, and is located on one of my favorite streets in South Grove – Battersea Road. It is ironic that the view out the front window of this house looks at a $3,000,000+ McMansion across the street.
Once upon a time there could have been two of those McMansions sitting where this old house now lies. Is that a good thing or a bad thing?
Details on 4035 Battersea Road, Coconut Grove, FL 33133:
- Lot Size: 13,000 Square Feet
- 2,085 Square Feet Living Area
- 2 Bedrooms, 2 Baths
- Asking Price: $879,000
You may also be interested in: Coconut Grove Market Conditions
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What Does The Future Hold For Grove Estates?
February 6th, 2009 | categories: Coconut Grove Gated Communities
It has been almost a year since the developers of this site next to the Kampong won their battle with the City to build a gated community of 11 single family homes to be called Grove Estates. As of today there has been no construction on the property and no official word as to what exactly the future holds. The current owners paid $7,000,000 for the land back in 2005 and the value has surely dropped over the past year. With an assessed value of $6,500,000 their taxes are running about $130,000 a year.
This is good news for the environmentalists and the Grove-ites who opposed the project. There was concern that the development would interfere with the quiet use and enjoyment of The Kampong located next door to the site.
For more information on Grove Estates, read this article in the Miami Herald.
You may also be interested in Gated Communities in Coconut Grove.
Stubborn Sellers
February 5th, 2009 | categories: Selling Real Estate in Coconut Grove
When the daily Hot Sheet comes across my desk and I see all of these overpriced properties for sale I often wonder if the sellers are completely out of touch with reality, overly optimistic about the market, or just plain stubborn.
Now surely some of you will say that overpriced listings are the fault of the listing agent. In some cases, you may be right. Sometimes the agent isn’t educated on the local market, or he/she is willing to take on a listing at an unrealistic price. But most of the time, listing agents do their homework and have a pretty good grasp of the market before they head out on a listing appointment. Agents do not like to take on overpriced listings because listings cost money. Every time I get a new listing I send out a photographer, print brochures, mail brochures, hold Open Houses and spend time showing the house. Who wants to do all that for a house that won’t sell?
So for the most part, the blame does not fall with the agent but rather right in the lap of a stubborn seller. There are some sellers out there who really don’t care what the numbers say, what the statistics show or what opinion the Realtor has. They have a price in their head, and they are unwilling to budge.
These overpriced properties are partly to blame for the massive inventory we are experiencing. It is simple, homes that are overpriced will not sell in this market.
If you think your property may be overpriced, ask your realtor for a reality check. You may cringe at the numbers, but a competitively priced home is the only way to sell in this market.
You may also be interested in: Glowing, Is Lack of Communication With Your Realtor Frustrating You?
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