Coconut Grove Real Estate Is Booming!
“Sale Price/Square Foot” Is At Record Levels
I don’t think that anyone would have expected the real estate market to go gangbusters during the midst of a global pandemic. But that is exactly what we are experiencing both nationally, and locally. In fact, strong buyer demand has pushed the “Average Sale Price/Square Foot” for single-family homes in Coconut Grove to $494.00 which is the highest on record.
We are seeing many factors contribute to the booming market:
- Historically low interest rates
- Local residents who want to get out of their condos
- Locals who live in a single-family home but want more space due to virtual schooling and parents who have to work from home
- North Easterners who are moving here both for tax reasons and all of the benefits of quarantining in sunny South Florida
On Pace To Match 2019’s Sales Numbers
We are also on track to sell the same (if not more) than the number of single-family homes than we did in 2019. Last year at this time, there were 116 closed single-family home. This year, during the same time period there have been 113 closed sales. There are currently have 48 homes under contract which is well above the average we typically have at any given time in the Grove.
Which segments are performing the best?
As you can see in the charts below, most price points are experiencing a bump in values in Coconut Grove compared to 2019 with the exception of the $2,000,000 – $3,000,000 price range. This is rather unusual considering that segment has been increasing in value each year for the past 3 years. The ultra-luxury homes had the highest percentage increase in “Price Per Square Foot” going from $715.00 in 2019 to $858 in 2020.
The pie charts below reflect the distribution of home prices in our market. You will see that most of our home sales in Coconut Grove have been priced under $2,000,000, with the majority being priced between $1,000,000 to $2,000,000. The distribution has not changed during the pandemic, you can see that the percentages are just about equal when comparing 2019 and 2020.
Lack Of Inventory
There are just 108 single-family homes on the market in North & South Coconut Grove. This is possibly an all-time low for our market. Low inventory levels are contributing to the sense of urgency that buyers have when a new home comes on the market, and a big reason we are seeing multiple offer scenarios play out over and over again. If you’re thinking of selling, now is a great time to get your home on the market!
What Does The Future Hold?
Experts predict that the current trends cannot be sustained indefinitely. Particularly when it comes to pricing, there is a tipping point where prices get too high and you start to see demand level off. However, when the markets do peak, it doesn’t mean that sales will fall it just means that we won’t continue to see unstoppable growth.
If you’re thinking of buying or selling a home in Coconut Grove, reach out to us today. We have been the top producing team in Coconut Grove for over 10 years and would love the opportunity to work with you! Contact us at 305-342-1623 or at [email protected] to set up a consultation.
