You may have noticed an article on the front page of the Miami Herald last week which states that South Florida ties Las Vegas for the area with the fastest falling home prices in the nation with a 27% decrease from April of ’07 to April of ’08.
The good news is that Coconut Grove only saw a 9% drop in home values for the same time period. But with every positive comes a negative. Due to the fact that prices are not falling as much here, the people who are buying strictly on price point are going elsewhere. This is exactly the reason that the Grove has seen a 50% drop in the actual number of sales over the past year.
Surprisingly, these numbers indicate that Coconut Grove’s real estate market is more stable than other areas in South Florida. When you combine the fact that there are fewer homes being sold and only a 9% drop in price over the past year, we are far better off than other communities where home prices are dropping and home sales increasing. Why? Because all of those under priced homes are setting the market for other houses in the area. If you live in a neighborhood where there are 20 distressed properties being sold every month, the value of your house will surely suffer.
By no means would I say that the Coconut Grove real estate market is booming, but the fact that our values are holding should make homeowners feel more secure.