It is an interesting time right now in the Coconut Grove real estate market. We have significantly fewer sales this year than we did during the same time period in 2015. In fact, the number of single family and land sales are down 21% this year. Prices have stayed relatively stable since 2015, with the average “Sale Price/Square Foot” coming in around $460.00. There are several factors which have contributed to the slower market:
- The strong dollar has weakened foreign purchasing power resulting in fewer sales all over South Florida.
- Sales typically slow down in the months leading up to a Presidential Election because people get nervous when there is uncertainty.
- Although home prices haven’t risen during 2016, they are still at record levels which is causing a bit of sticker shock among buyers.
- There is no sense of urgency from buyers because they don’t anticipate prices rising anytime soon. If anything, they are waiting for them to fall.
In addition to the above reasons, it has been particularly slow over the past few months due the fact that summer is our slow season in South Florida. We typically see activity drop in the summer months when the snow-birds head back north and many Miami families head out of town to escape the heat.
I expect the activity to pick up in mid-November. The election will be over, temperatures will be cooling off and our hotels will be full of visitors from across the world.
Below is a recap of the year to date sales in Coconut Grove:
- 75 single family home sales (41 sales over $1 million, 34 sales under $1 million)
- Average List Price (of sold homes): $1,590,768
- Average Sale Price: $1,456,124
- Average Sale Price/Square Foot: $462