The Coconut Grove Luxury Real Estate Market Report 2018

Coconut Grove Luxury Homes for Sale | The 2018 Market Analysis

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Low Inventory Levels are Resulting in Increasing Prices per SF

Luxury homes in Coconut Grove have seen a considerable surge in value over the last few years. As the Wall Street Journal expressed very well in a 2016 article, the Grove has seen a metamorphosis from Birckenstocks to Billionaires. The bohemian town has seen a large influx of wealthy families who love the Grove for its safety, central location and great schools. Attracted by the ideally situated waterfront homes as well as boutique gated communities located within walking distance to Coconut Grove’s town center, demand for Coconut Grove luxury homes surged in recent years. Home values in this primary market were also boosted, because many dated homes were rebuilt into contemporary mansions.

Essential to predict future values are the months of inventory. The above graph shows the months of inventory for Coconut Grove luxury homes. The market shows signs of a neutral (Between 12 and 18 months) to a seller’s market. (Below 12 months). This means the demand is higher than the supply or in equilibrium, an extremely bullish sign for a luxury market.

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Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale
Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale
Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale
Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale

Waterfront Homes in Coconut Grove

Waterfront homes sell for roughly $300 per SF more than homes on dry lots. Waterfront homes in the Grove are either located on the bay, or provide direct access to the open bay without bridges. Many of Coconut Grove’s waterfront homes are also located in a gated community.

Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale
Coconut Grove Luxury Real Estate Market Report 2018 | Coconut Grove Luxury Homes for Sale

Coconut Grove land for sale

Coconut Grove lots sell between $850,000 and $2,650,000 or if you look at prices per SF a range between $42 per SF and $116 per SF. Dry lots sold on average for $80 per SF while one waterfront lot sold for $104 per SF (sold for $2,650,000). For the sale of a land we do not see any difference in average prices between those located in a gated community or those located on a public street. Neither do we see a difference in price for those that already have a structure built on them versus those that are completely empty. Lots in the Grove are quite scarce. We recently listed a lot in the North Grove on Emathla Street, which was under contract within 10 days. There were more than 10 really serious inquiries for the lot.

Advice for Buyers of
Coconut Grove Luxury Homes 

There is a solid demand for Coconut Grove luxury homes. Prices of luxury properties are rising and with limited space to build new homes, we are very bullish on this market. The Grove has the strongest stats of any neighborhood for luxury homes and regardless of low, mid or high range the stats reflect that prices are on the increase. With that said, the Grove is a relatively small market and it is important to recognize that there are far fewer luxury homes in the Grove than in the Gables, so the choices are limited. Buyers may also want to consider: Gables, South Miami and Ponce Davis if they cannot find what they want in the Grove. My personal experience has been, and still is, that there is a small amount of construction underway for new luxury homes in the Grove but with city plans for ‘zoning changes’ being currently put in place we could find that sizable luxury (5000 sqft+) homes, particularly on dry lots, will become somewhat of a rarity in this neighborhood. If you can get hold of a sizable lot (12,000+) and wish to build a luxury home (5500 sqft+) you probably want to do this now, because you may not be able to in a year from now. Land value is on the rise for both dry and wet lots and so building is definitely worth considering if you can.

Advice for Sellers of
Coconut Grove Luxury Homes

It is a good market to be a seller in the Grove, compared to other neighborhoods, but this still comes with a caveat! With limited supply and high demand many properties can sell fast after being listed – if they are very ‘positively’ unique (unique with added value as opposed to being unique for unique’s sake) and of a very high quality ($3- 4m range is ideal). It needs to be said however that despite the demand, current buyers are less eager to pay top dollar, unless they see a clear justification. Remember as well that luxury buyers will also consider Gables, South Miami, Ponce Davis and even North Pinecrest when buying a luxury home because these neighborhoods often provide a similar or equal quality of life. So price right and remember that the velocity of sales in the luxury market is much slower than the normal market. There is a relatively small amount of luxury homes for sale BUT also a relatively small number of buyers. It is very typical for luxury homes to take 6 months or more to sell. Even though months of inventory is low compared to other neighborhoods, it is still in excess of being a sellers market. It is also important to recognize that expensive homes do not trade hands every day and extremely expensive homes ($6m+) are notoriously hard to move. Unless they are waterfront, these tend to suffer from being the ‘most expensive home on the block’. We have seen only 1 home sell over $6m in the last year on a dry and 2 over $6m on the water. In short: Respect the market’s ceiling!

Contact David Siddons to know more about the Coconut Grove Luxury Real Estate Market. Whether you want to sell or to buy a luxury home in Miami we can help you with insights and an excellent (digital) marketing strategy

David Siddons | +1.305.508.0899 | David@siddonsgroup.com

David Siddons is a top producing Miami realtor with nearly $100M in yearly sales. He is known as a market analyst and he is the author of many of Miami’s most groundbreaking real estate reports.

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