The Coral Gables Luxury Real Estate Market Report 2018

Coral Gables Luxury Homes for Sale | The 2018 Market Analysis

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A Stable, even Bullish Coral Gables Luxury Market

Despite a volatile Miami real estate market with rapid price increases followed by price corrections, the Coral Gables market has been quite stable. We did not experience inflated prices in the Gables, which has resulted in zero to none price corrections in recent years. As can be seen from the average prices per SF, we are seeing a steady, yet increasing line. Luxury properties tend to appreciate less fast than properties in lower price ranges. The lowest prices per SF seem to be following the lead of the average prices per SF. We see an increase over the years, but it is not a steep line. The highest prices paid are very volatile, as one sale of a property located on the open bay can lift the average sales price considerably from one year to the other. In a market with increasingly price conscious buyers, we see that the Gables luxury market is still showing signs of a bullish market.

Decreasing and Stable Amount if Inventory

Arguably more important than the prices per SF are the months of inventory. The months of inventory show the supply/demand relationship of a market, which is the best prediction for the future. In the luxury marker 12 to 18 months of inventory is a balanced market, while less than 12 months is a sellers market in which we see more demand than supply.

The months of inventory for Coral Gables provide for a rather bullish outlook. In the last months we have seen a decreasing inventory with an average of 40 months in the first 6 months of 2018. This is not a sellers market, but also not a very high number of inventory in the ultra-luxury market. Comparing to other luxury home markets in Miami, the Gables shows one of the lowest numbers, lower than Pinecrest, the Beach and Key Biscayne, yet higher than Coconut Grove.

Looking at historical data for the Gables we see that in times of the last recession the Gables was seeing levels of inventory above 100 months. In the last 5 years the inventory has remained quite stable.

Waterfront Properties in Coral Gables

Within the price range of $3M+ we see that most of the sales in the Gables are located on a waterfront lot. In the previous chart we depict the difference between luxury home prices on a dry lot vs those homes on a waterfront lot. Waterfront homes sell for around $200 to $300 per SF more than dry lot homes. The type of waterfront the property is located on also influences the price, see chart.

Buying Land in Coral Gables

Many buyers prefer to build their own dream home and are looking for a lot in Coral Gables. In 2017 and the first quarter of 2018 we saw lots being sold between $36 per SF up till $150 per SF. This translates into prices from $900K to $7,5M. Waterfront lots with ocean access sold on average for $139 per SF, while a lot in the lakefront and gated community of Hammock Lakes sold for $98 per SF. Non waterfront lots sold on average for $61 per SF. Those who are looking to build east of the US1 are looking at lots that sell on average for $106 per SF, while west of the US1 we see lots being sold for $69 per SF. The David Siddons Group offers many blogs on building your own property. Being married to an architect and interior designer, I have undergone numerous remodeling and extension projects while I have guided numerous of my buyers in the process of home building (many of them intended to be an end-user, but ended up not being able to resist the offers). As I acquired an eye for the process and for the different ranges of finishes, I am better equipped than any agent to guide you into the construction or remodeling process. I have learned about the pitfalls, the city’s regulations and of course I know a thing or two about what buyers are looking for.