Archive for May, 2009
Coconut Grove Is Looking For Millionaires…
May 17th, 2009 | categories: Buying Real Estate in Coconut Grove
Calling all millionaires….Coconut Grove’s housing market anxiously awaits your arrival.
Looking to spend between $1,000,000 and $2,000,000 for a home in Coconut Grove? You are in luck, there are currently 70 homes for sale in Coconut Grove that are listed in that price range. The good news for buyers is that now is the time to be picky, the bad news for sellers is that it is harder than ever to make your house stand out.
So far this year, Coconut Grove home sales have not been kind to those who own a home priced $1,000,000 to $2,000,000. Coconut Grove has only seen 3 closed sales this year in that price range, and currently has 2 under contract. That is just under 5% in a price range that used to dominate the Grove. It was not that long ago that the average sales price for a home in Coconut Grove was significantly higher than $1,000,000.
Where have all the high end buyers gone?
This is the main question I get from the owners of my listings these days. Have they decided to spend far less for a home? Have they had trouble getting financing? Or have their 401ks taken such a hit that they are no longer in a position to buy such an expensive home. We all assume that in this economic downturn the rich are not as affected as everyone else. This assumption obviously has proven to be wrong, and perhaps they are even more affected.
The problem we are seeing in this price range is that financing is difficult to obtain and expensive to own. Until recently, most banks were requiring 30% down for a Jumbo Loan (anything over $417,000). When you consider buying a $1,500,000 home, you are talking a down-payment of $450,000 with closing costs of roughly $50,000. Not many people have $500,000 cash to invest in their home in today’s environment. Also, the rate on a Jumbo loan is significantly higher than the rate on a conventional loan. Banks today are still scared to lend that much money on one piece of property. Until we see the lending guidelines start to loosen up, it may be a long summer for those who are trying to sell their homes listed between $1,000,000 and $2,000,000.
A Glimmer Of Hope
With the recent upturn in activity we have seen here in Coconut Grove, a lot of the good houses that were listed just below $1,000,000 are starting to go under contract. As this inventory comes off, buyers will be forced to move up in price to find the house that suits them. Also, I have heard from a few LOCAL lenders that they are now doing Jumbo loan financing with only 20% down. However, the buyer must be very well qualified.
If you are looking to buy or sell real estate in Coconut Grove, send me a note here or give me a call at 305.342.1623 and I would be happy to help you.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here
Hard Hat Tour of Residences of Vizcaya
May 15th, 2009 | categories: Coconut Grove Condos
I had the opportunity today to have a private hard hat tour of the Residences of Vizcaya (3535 Hiawatha Avenue) here in Coconut Grove. All I can say is that I was overwhelmingly impressed with the project as a whole. The floorplans are unique and very spacious, the views are outstanding, and the finishes will be first class. Prior to this, The Grovenor House was the premiere luxury condo in Coconut Grove and the Residences of Vizcaya certainly gives it a run for its money. Expect completion of the building by early of 2010.
The building can be broken up into 3 sections, North, Middle and South. The North and South sections of the building have 1 residence per floor that runs from the Park view all the way through to the Bay view. The first floor units on the North and South section offer their own private pool and a larger outdoor patio than the upper floors. The South section has larger bedrooms and smaller living spaces. While the North section of the building has smaller bedrooms and larger living spaces. The idea on the South section was to accomodate owners from Europe and South America who may have frequent family visitors. You could fit two queen beds in the 2nd and 3rd bedrooms in the units on the South side.
The Middle section is comprised of two different kinds of units. On the Bay side, there are two, two story units with living on the bottom floor and bedrooms upstairs. These units offer the largest Bayfront Views. The four units that face the park are smaller units but also have magnificent terrace spaces.
The North penthouse is available. The penthouse views are out of this world and feature a rooftop terrace with private pool, and summer kitchen. The penthouse has a 75 foot dock space that comes with the unit.
Prices currently range from $1,699,000 to $5,900,000. If you are interested in purchasing any of the units at The Residences of Vizcaya, I would be happy to set up a tour for you. Send me a note here, or give me a call at 305.342.1623.
Thank you to the lovely Monica Betancourt of EWM for her time.
Great Entry Level Homes In Coconut Grove
May 13th, 2009 | categories: Buying Real Estate in Coconut Grove
Compared to the rest of Miami, Coconut Grove has a higher entry level price than other cities. I consider an entry level home in our market to be priced under $400,000. Here are 2 great homes at excellent prices in that market.
3817 Le Jeune Road, $399,000
This short sale is priced very well, and is in very good condition. The home features Old Spanish charm with 1,480 square feet of living space, 3 bedroom/3 bath, a detached cottage that could be used as den/office/guest house, new kitchen with Stainless Steel appliances, 4 separate patios, grotto and covered parking for 2 cars. Broker is Kitty Roedel with Grove Properties.
2550 SW 28th Street, $349,000
This was a great buy at $379,000 when it went under contract earlier this month. After that deal fell through it was put back on the market at a new price of $349,000. It is a 3 bedroom, 2 bath with 1,180 square feet in North Grove that is turnkey ready. The pictures do not do it justice. Broker is Tony Scornavacca with Avatar Realty.
If you are interested in seeing either of these properties, or any other homes in Coconut Grove I would be happy to arrange a showing for you. Send me an email or give me a call at 305.342.1623.
What Do You Get For 11.5 Billion?
May 13th, 2009 | categories: Coconut Grove Real Estate
This post authored by our Guest Contributor, James Venney, Private Mortgage Banker and Author of JuicyEstates.com.
If you are desperate for something to do you could read the entire Monthly Treasury Statement or you could just flip to page 27 for the juicy bits. On page 27 you will note that the Treasury spent $11.5 Billion on Agency eligible mortgage backed securities in April. Sounds impressive but in fact this is the least the Treasury has spent in any one month since November of 2008.
Why does this matter and what does it mean for mortgage interest rates and buyers of homes in Miami and surrounding areas of South Florida? Well, in short it means a whole lot. What the Treasury and Fed have done over the past 8 months is nothing short of miraculous. By dolling out tax payer dollars in a measured and steady pace they have managed to artificially keep 30 year fixed rates between 4.5% and 5.00%. Compare this with the historic low prior to the liquidity crisis of 5.25% and it is easy to see what effect this effort has had on both the mortgage and housing markets. Of course some would argue that that tax payer dollars should not be used in this manner but I assure you that the alternative is far more painful.
The historically low interest rates we are currently offering for both conforming and Jumbo mortgages in the Miami mortgage market have had and will continue to have a positive effect on the local housing market and economy as a whole.
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Bayshore Villas, A Gated Community
May 11th, 2009 | categories: Coconut Grove Gated Communities
Bayshore Villas is a gated community located off of South Bayshore Drive (next to L’Hermitage). The name Bayshore Villas can be deceiving because some people use the term “villa” to describe a luxury townhouse, and others use it to describe an architectural style. To clarify, all of the 25 properties in here are single family homes with a Mediterranean style.
If you are interested in this community then you are in luck because there is 1 gorgeous waterfront villa for sale which is now priced at $4,300,000. The home features an astounding 9,000 square feet of living space on an 8,000 square foot lot. I had a client that was confused as to how there could be a 9,000 square foot house on an 8,000 square foot lot. The simple answer is…the house is built up! It has 3 stories.
Believe it or not, asking $477.00 per square foot this home is a good value. Although you aren’t getting much land, you are getting unobstructed views of Biscayne Bay in a secure gated community.
The last home listed in the MLS that sold in Bayshore Villas was a non-waterfront property and located at 3522 Bayshore Villas Drive. It closed for $1,880,000. There are currently no other properties for sale in here.
Details of 3528 Bayshore Villas Drive:
- 4 bedrooms, 5 and a half baths
- 2 car garage
- Community features tennis court, dock space and pool
- Manned Guard Gate
- Asking $4,300,000
- Broker is Coldwell Banker
If you are interested in seeing this home or any other property in Coconut Grove please send me a note or give me a call on my cell at 305.342.1623.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here
If You Don’t Ask, You Won’t Receive
May 7th, 2009 | categories: Coconut Grove Real Estate
I learned a long time ago that if you don’t ask you won’t receive.
If you are interested in buying or selling real estate or know of someone who is, I would greatly appreciate your business or referral. Now more than ever it is important to have a specialist helping you in your real estate needs.
Thank you, and I appreciate your support.
Condo-Hotels in Coconut Grove
May 6th, 2009 | categories: Coconut Grove Real Estate
Two of Coconut Grove’s Condo-Hotels are The Sonesta and The Mutiny. What exactly is a Condo-Hotel? A Condo-Hotel is a building where the owners can live full time, or where the owners can place their unit in a rental pool when they are not occupying it.
A Condo-Hotel makes sense for people who live in Miami part-time because you have your own unit to stay in when you arrive in town and while you are away you are earning income on the property with no hassle of managing it. Units that are frequently in the rental pool typically cover their yearly expenses and some of them even give you a small profit.
The cost to you is that you pay a percentage to the hotel each time the unit is rented. The amount that you pay depends on how frequently you put the condo in the rental pool. For example, if you never came to stay in the unit and it was in the rental pool all year long they would give you a higher percentage of the profits. If you came to stay quite often and rarely put it in the pool then they would take more of a cut.
The Mutiny is located at 2951 South Bayshore Drive and is the smaller of the two buildings. It features a new Indian restaurant called Atchana. There is a beautiful pool and small gym. Prices in The Mutiny range from $175,000 to $350,000 for a 1 bedroom, and range from $375,000 to $560,000 for a 2 bedroom. Square footages range from 560 to 1,750 with an average square foot of around 900 in each unit.
The Sonesta is located at 2889 McFarlane Road (around the corner from The Mutiny). The Sonesta also has a nice restaurant called Panorama which has beautiful water views and features a rooftop pool and small gym. A 1 bedroom unit in here ranges from $175,000 to $450,000 and a 2 bedroom ranges from $450,000 to $850,000. Square footage ranges fom 365 to 1,937 with an average square foot of around 861 in each unit.
Both buildings have a 24 hour concierge with valet parking and are located just steps from the center of town.
Warning: In my experience, mortgages can be more difficult to get on a Condo-Hotel because most of them are investment properties.
If you are interested in buying in either of these buildings or any property in Coconut Grove, send me a note here or give me a call at 305.342.1623.
Riley’s Take On The Grove Market In April….
May 5th, 2009 | categories: Coconut Grove Real Estate
Yesterday we wrote a post about all of the activity that we have seen in Coconut Grove in the last 30 days. In today’s post I want to get into a little more about what those numbers are telling us.
Obviously, it is exciting to see so many contracts being written. Inventory is starting to shrink and buyers are starting to step off the fence. It appears that the lenders are loosening their guidelines and buyers are finally willing to take advantage of those great rates. It is also good for our market that so many short sales and foreclosures are being gobbled up. The rate at which short sales and foreclosures are coming on the market in Coconut Grove has decreased. If all stays the same, it leads me to believe that from this point forward more buyers will be forced to buy “real” houses if they want to live in Coconut Grove. It also appears to me that sellers are getting the message that when they have an offer on their house they need to take it seriously and do everything in their effort to make it work.
One disturbing trend is that of the 31 to go under contract, only 1 was listed for more than $1,000,000. This is of concern for a number of reasons. First and foremost, I have several great listings priced $1,000,000+ that I would love to sell :) Also, since the average single family home in Coconut Grove is still priced at over $1,200,000, there is a large segment of our inventory that is sitting dormant. Although I said earlier that lenders are loosening their criteria, I believe that applies mostly in the lower price ranges. It appears to me that the JUMBO loans are still difficult to get and offer less than favorable terms.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here
31 Coconut Grove Pending Sales In April…
May 4th, 2009 | categories: Coconut Grove Real Estate, Coconut Grove Real Estate Market Conditions
It was an unbelievable month for real estate here in Coconut Grove, things have changed drastically in just 30 days for us. As predicted, this was the busiest month that we have seen in over a year. My Grove market boards are getting full, and that is a great thing!
What is selling? The under $1,000,000 priced properties and short sales/foreclosures.
There were 15 single family homes to go under contract in Coconut Grove in April. All but one were priced under $1,000,000. There were 16 condos and townhouses to go under contract in April in Coconut Grove, all were under $1,000,000.
More than 50% of these pending sales were foreclosures and short sales. Combine that with the price point of the properties and you can see that buyers right now want deals. They also don’t seem to be turned away by the poor condition of the foreclosures and short sales. I have been in almost every one of these distressed properties that went under contract and can say that most of them give double meaning to the word distressed.
You may also be interested in: How To Price Your House In Today’s Market, New Construction in Coconut Grove
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here
Coconut Grove Pathways
May 2nd, 2009 | categories: Coconut Grove Real Estate, Grove News
Coconut Grove neighborhoods may not have many sidewalks to speak of, but if you can make your way to the Commodore Bike Path or to South Bayshore Drive, you will have a pathway that leads you all the way north to Key Biscayne or south to Matheson Hammock Park and Fairchild Gardens.
I hear many people complain about the fact that we don’t have sidewalks like other areas. But in my opinion the lack of them adds to the beauty of Coconut Grove. Instead of having a setback of 10 feet on every property where there is only grass and concrete, owners plant lush gardens and trees (ever heard of the Coconut Grove land grab?). It really adds to the canopy of the Grove 
