Real Estate Update: Coconut Grove Hits Bottom With Prices Low and Sales Up
September 15th, 2009 categories: Coconut Grove Market Conditions, Coconut Grove Real Estate
Prices are Low
Prices in Coconut Grove are at an all time low. After a quick check of all closed single family homes in 2009 (there have been roughly 100), the average sale price per square foot is $265.00 (median sale price per square foot is $250.00).
At the same time last year (January through September 2008), the average sale price per square foot was $343.00 (median sale price per square foot was $309.00).
Right now we are looking at a sale price to list price ratio of 88%. This means that buyers are paying roughly 88% of the list price. However, the SP/LP figure needs to be taken with a grain of salt as there are some homes that have been reduced significantly to reach their final list price (on those homes we see about a 5% SP/LP ratio).
$500,000 – $1,000,000 market is the most active
As I have been saying all along, the $1,000,000+ market is SLOW. The average sale price on a home this year in Coconut Grove is $800,000 (median sale price is $600,000). That is the lowest average I have seen since I started in the business, and $200,000 lower than the average sale price of the same time last year. The figure is due to a combination of falling values, bad economy and difficulty in getting Jumbo Loans. I don’t have to look at the numbers to know this is true. I can tell simply by the amount of interest I am receiving on my $500,000 to $800,000 listings compared to my $1,000,000+ listings.
Coconut Grove Home Sales Are Up!
We are certainly selling more homes this year as compared to last year. At the same time last year we had only 70 sales for 2008, but so far this year we have had approximately 100. That is an almost 40% increase in single family home sales in Coconut Grove!
My prediction for Coconut Grove real estate in the months to come?
With activity drastically increasing (even over the past month) I do not predict that we will see another drastic drop in values next year. It is the simple law of supply and demand. With supply falling, demand will increase (along with prices).
And it is about time, Coconut Grove was one of the last communities in South Florida to see an increase in home sale activity.
Now is the time to buy, I have noticed that in all price ranges, the best quality homes are coming off the market much faster than before.
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If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.
Thanks for these last two posts, Riley. You’re always so helpful.
Linda