The Coconut Grove Real Estate Report and Market Analysis – For July 2018
The Coconut Grove Real Estate Report | Homes for sale in Coconut Grove
Coconut Grove is one of Miami’s most desired neighborhoods. The neighborhood, which is considered Miami’s safest residential area, attracts many families who enjoy the lifestyle and the down to earth exclusivity of the Grove. Coconut Grove is centrally located, offers great private schools, safety, many parks, and last but not least many wonderful and fast appreciating real estate opportunities.
For those who don’t know Coconut Grove, please have a look at the below video in which we drive you through the Grove. All the way at the end of this article we included some really useful links for you, explaining the reasons people love living in Coconut Grove and what is happening in the Grove.
Click here for the Coconut Grove Real Estate Report 2016 for Condos
A drive through Coconut Grove
The Coconut Grove Real Estate Update Video (The market explained in less than 2 minutes)
The Coconut Grove Real Estate Report – Inventory levels in 2015 – 2016
Inventory of Coconut Grove homes for sale has been much lower than the rest of Miami in the last couple of years. The desirability of this small area within Miami created a demand which was absorbing the supply at a rapid pace. As can be seen from the graphs below, Coconut Grove Homes below the 1 million Dollar mark are showing the signs of a well balanced market tending towards a seller’s market. The $1M – $2M market was still a neutral market in 2015 but is now a buyer’s market. Many homes stay longer on the market these days, which influences the inventory, due to owners or realtors overpricing the properties. After the market saw rapidly increasing prices and an extremely low inventory in 2014 and 2015, many sellers are now asking prices that buyers are not willing to pay.
Rule of Thumb
- Below 6 months of inventory: More demand than supply, creating a seller’s market
- Between 6 and 9 months of inventory: A neutral market with a balanced relation between supply and demand
- More than 9 months of inventory: More supply than demand, creating a buyer’s market
The Performance of Coconut Grove Waterfront Homes
Have a look at the same data for waterfront homes
The Lowest, Average and Highest Sales Prices per Sq.Ft in Coconut Grove
Below you see the graph that compares the average of the 10 lowest sales prices per Sq.Ft, the overall sales price per Sq.Ft and the average of the 10 highest sales prices per Sq.Ft.
Coconut Grove saw steady price levels in the last few quarters. Coconut Grove luxury real estate ($2M+ market) saw a small decline in prices as Q1 & 2 of 2015 sold 10 waterfront homes, while in the last year a very limited amount of waterfront homes have sold, which has an impact on the overall price levels.
Coconut Grove Real Estate Report | The Average Sales Prices per Sq.Ft for the different price ranges
Below you can see what homes of different price ranges are selling for per Sq.Ft.
The Average Sales Prices per Sq.Ft over the last 4 years
Looking at the general growth of the market over the last years (made easier for the eye with the help of trend lines*) we see increasing prices in Coconut Grove. In Coconut Grove the property prices between $500K and $1M increased by nearly 70% from the mid $200s to the lower-mid $400s. Properties in the $1 – $2M increased from $315 to $450 per Sq.Ft which is more than 40% increase. The ultra-luxury segment saw the smallest increase of prices with a little bit less than 10% increase.
*Especially in the luxury segment of the market prices might differentiate substantially from month to months due to limited sales or a sporadic sale of a property with features that are driving prices up (eg a private beach). Using automatically generated trend lines offers the reader a better idea of where the market is heading.
David’s Conclusions
Coconut Grove unlike many other neighborhoods has performed well in the last year and prices have continued to creep up. Not just the housing market but the Condo market also (see the separate Condo market report here). The Grove is contained from the troubles of Brickell and as buyers search for a safe, stable and inviting neighborhood to call home, families have continued to come to the area. With that said the peak of the buying frenzy was July 2015 but the market continues to creep up and will for the rest of the year behave in a more stable manner. We do however anticipate more of a struggle in the luxury end of the market ($2.5m and above), and sellers will have to appreciate that their listing will stagnate of they try and price their home above the market in any way.
I am still bullish on the Grove as a good neighborhood to invest and live but I do advise caution as with all purchases to operate within the confines of the $ per sqft ranges provided within the report.
I have lived for 8 years in Coconut Grove on Crystal Ct. I know the area, the different communities, streets and numbers like nobody else.
