It has been said a million times but I’ll say it again, 2020 was a year we will never forget. When COVID hit back in March, it is safe to say that nobody knew what would happen to the real estate market. The experts were predicting it would hold steady and that we wouldn’t see a repeat of the housing crash, but when showings came to a screeching halt, closings were delayed (and sometimes cancelled) and potential sellers were holding back on listing their homes – every single agent in the industry held their breath. I was hopeful the analysts were right, but I never would have guessed the market would rebound like it did. The City of Miami made national headlines as a GREAT place to live during a pandemic (not to mention the sun, sand and low taxes) and buyers flocked here in droves. Because of the activity we experienced in the late summer and early fall, Coconut Grove real estate bounced back and had nearly the same number of home sales than it did in 2019. What a roller coaster it was!
The charts below represent single-family homes sold in North and South Coconut Grove. Please note, we have eliminated any sales that were listed as “single-family” on the MLS but were actually tear-downs (i.e. land value sales). If included, those sales would significantly impact the numbers and not provide a realistic picture of what the single-family home market is like.
The pie chart below shows the breakdown of home sales in Coconut Grove in 2020. Compared to previous years, the distribution didn’t change much, our most active price point has consistently been the $1,000,000 – $2,000,000 homes. However, we did see a pickup in 2020 for closed sales over $3,000,000 (8 in 2019 and 12 in 2020), and slightly fewer homes sold under $1,000,000 (53 in 2019 and 46 in 2020).
Average home values rose to $497.00 per square foot in 2020, which is the highest number on record. Sellers had an extreme advantage during the pandemic because demand was high and supply was low which allowed them to hold out for higher prices. The segments that experienced the biggest rise in “price per square foot” were the $3,000,000+ homes which increased from $715.00 to $859.00 and the under a $1,000,000 segment which increased from $425.00 to $445.00. During 2020, there were 21 homes which sold at or above list price which is unusually high number for our market.
The chart below also demonstrates that real estate is always a good investment! Over the past 10 years, average home values have risen 75%.
Coconut Grove real estate is typically the most active during March, April and May which results in the most number of closings in June. However, in 2020 we didn’t get to take advantage of those active months due to COVID. When the City started opening back up over the summer, we were able to make up many of those lost sales, you’ll see July through November had more sales than the previous year.
All in all, I would say that it was an outstanding year for the single-family home market and it doesn’t seem to be slowing down anytime soon.
If you’re curious about the value of your home in this evolving market, please reach out to us today, we’d be happy to offer you a no-pressure home valuation.