Bay Heights is located in the northernmost section of Coconut Grove. It has some unique characteristics that make it different from other Grove neighborhoods, for example, there are sidewalks on every street and there is an association that pays for a full-time driving security guard.
In years past, Bay Heights has sold at a discount compared to the rest of the Grove due to the fact that many of the homes were older and had not been renovated. Recently, the neighborhood has become more desirable because buyers are looking for properties with a shorter commute to work (Bay Heights is located just minutes to downtown Miami/Brickell, and bypasses all of the morning/evening traffic on Main Highway and South Bayshore Drive). Investors have noticed this opportunity and have been buying up homes, renovating and flipping them. This has certainly helped to raise values in the neighborhood over the years.
A few things you may not know about the Bay Heights real estate market:
Right now we are seeing supply and demand out of balance with each other. There are 11 homes on the market and just 1 sold in 2018 (there have been 58 closed sales in the rest of the Grove). This could have to do with the fact that prices are out of line with what buyers are willing to pay for the area. As you can see below, the average “List Price/Square Foot” is close to $500.00/sf, however, we are seeing buyers act only on the homes that are listed for much lower than that. The home that closed this year was listed for $362.00/square foot and closed for $348.00/square foot (there is currently one home under contract which is listed for $388.00/square foot).
We are seeing a similar trend throughout the Grove, where the inventory is outpacing the pending sales. As sellers adjust their pricing, I believe we will see the number of transactions start to creep up.