Neighborhood Economics for Coconut Grove – November 2014
The Coconut Grove Real Estate Market in a Nutshell
Get a quick overview of the Coconut Grove Real Estate Market
The neighborhood economics blogs are excellent to gather a pulse on the Coconut Grove Real Estate Market as we provide the market’s key indicators. This blog focuses on the last 6 months of Coconut Grove Real Estate Data and is derived from the MLS South Florida.
Summary of Coconut Grove Real Estate Market- November 2014
The below article was written in 2014 and some of the information provided is no longer accurate. Please use the orange buttons above to read the latest Coconut Grove news and market reports.
Coconut Grove has been showing a stable market situation. The amount of new listings is limited as people like to reside in the Grove for a longer time and good quality properties are often taken off the market before even being listed. The Coconut Grove Real Estate market is still a buyers market with 8.3 months of inventory
For Sale vs Sold Properties
In October 2014, 9 homes were sold in Coconut Grove while 75 homes were listed. Coconut Grove is known for having a limited number of listings as most people like the area for its quality of life and don’t easily move out. Therefore the supply of homes is always a challenge when buying into the Grove
The Months of Inventory and the Absorption Rate
The months of Inventory and the Absorption rate are basically the two most important indicators in Real Estate. The months of inventory tells us whether its a sellers or a buyers market and how saturated the market is. The absorption rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed (sold or pended) each month. The Absorption Rate is presented as a percentage (%) of the current inventory. With 8.3 months of inventory or a 12% absorption rate, Coconut Grove is currently in a buyers market.
Rules of Thumb
Buyer’s market: more than 6 months of inventory based on closed sales / absorption rate of less than 16.67%
Seller’s market: less than 3 months of inventory based on closed sales / absorption rate level greater than 33.33%
Neutral market: 3 – 6 months of inventory based on closed sales
The Sales Prices in Coconut Grove
The actual sales prices as well as the sales prices per Sq.Ft have increased this month compared to the previous months. If you compare the average price per Sq.Ft with earlier this year we see a decline in the average price. This might have to do with the fact that less waterfront homes were sold in the past months, which has a huge impact on the average sales price per Sq.Ft