Over the past few months we have seen inventory skyrocket to an all-time high in Coconut Grove, there are currently 163 homes for sale (77 for sale in the North Grove, 86 for sale in the South Grove). To make matters worse, buyers seem to have less urgency to pull the trigger. With so many choices, they are taking their time and seem to be waiting for sellers to adjust their pricing. In fact, of the 51 homes that have closed this year in Coconut Grove, 31 had price reductions prior to going under contract.
Take for example our listing located at 3740 Irvington Avenue. We began with a list price of $1,399,000 and had multiple showings a week, but no offers. Once we reduced the price to a number that got buyers excited ($1,299,000) it went under contract shortly thereafter. The same thing happened last week with our listing at 4180 Poinciana Avenue, we had showings almost every day without any offers. Our sellers didn’t want to test the market anymore and made a significant price reduction from $1,450,000 to $1,250,000. This produced an offer almost immediately.
So although we are in a tough market right now with an unprecedented amount of homes for sale, if you are priced right buyers will take notice and act accordingly.