Coconut Grove Townhomes: Should You Sell in 2024?

Coconut Grove Townhomes for Sale | Market Trends and Seller Advice for 2024

Should You Sell Your Coconut Grove Townhome in 2024?

The short answer is YES! At this moment the townhouse market is on fire! The price per square foot has risen to over $800, the highest it has ever been. With only 4 months of inventory and high demand, it’s undoubtedly a seller’s dream.

The long answer is: IT DEPENDS… on what budget you have for your next property. More on what type of budget you need to move will be discussed further down this article. Let’s talk about long-term investment. Land is a finite resource, and townhomes, nestled in small parcels of land, have limited appreciation potential compared to houses. If you’re eyeing the best long-term appreciation, consider leaping to a house. But don’t count townhomes out just yet! They hold undeniable appeal for many, thanks to their low-maintenance lifestyle. A townhome offers a pristine piece of real estate without the headaches of extensive upkeep. So, while you may miss out on land appreciation, you’ll gain peace of mind and a well-kept property

How is the Market for Coconut Grove Townhomes Right Now?

Townhouse inventory is at a historic low, with only a four-month supply available. While townhomes typically make up around 10-15% of the Coconut Grove Real Estate Market, they’re currently representing just 10% of the available listings. This scarcity has led to high demand, especially for those prized townhomes boasting excellent walkability. It’s not uncommon for well-priced, remodeled townhomes to attract eager buyers and go under contract within days of hitting the market.

Has the Price per Square Foot Risen This Year?

Absolutely! We’re seeing a significant increase of 16% in value since last year. To put it in perspective, the average price per square foot from January to April 2024 sits at $764, compared to $660 during the same timeframe in 2023. It’s a noteworthy jump that reflects the current momentum of the Coconut Grove townhome market.

Historic Sales Prices per SF for Coconut Grove Townhomes

What is the Current Ceiling for Sales Prices of Coconut Grove Townhomes?

Let’s break it down. When we exclude the townhomes in The Cloisters and Arbitare, we see that new townhomes listed above $2.9 million are lingering on the market a bit longer. However, it’s worth noting that the record for a townhome sale in Coconut Grove sits just above $900 per square foot, excluding waterfront properties. This gives us a good benchmark to gauge the upper end of the market.

Could Prices Fall?

Unlikely. The current limited supply simply can’t keep up with the ever-growing demand, making a price drop highly improbable.

Can Prices Continue to Rise?

Absolutely. Prices have been on a steady upward trajectory year after year, even though we don’t see the rate of appreciation as high as in previous years there’s no indication of this positive trend slowing down. With supply remaining low and demand persistently high, the outlook is promising. A significant portion of this demand stems from families seeking the Coconut Grove lifestyle without the hefty price tag of single-family homes, further fueling the market’s momentum.

What Type of Coconut Grove Townhomes Sell the Best?

Let’s dive into the details. The most sought-after townhomes are those in good condition, built between the early 2000s and 2010s, boasting 3 bedrooms, and priced in the range of $1.3-1.6 million. Interestingly, these gems are currently in very short supply, with only 8 listed properties, of which 4 are already under contract. These townhomes are highly coveted in today’s market.

What Rent Should I Expect for My Grove Townhome?

Brace yourself for the rental market! With townhome inventory already scarce for sale, the rental scene is even tighter. When townhomes hit the rental market in good condition, they’re snatched up within weeks. However, it’s essential to note that the sample size for rental data is relatively small. Furthermore, not all types of townhomes are available for rent, as many are primarily used for end living rather than investment purposes. Here’s a glimpse of what you can expect for 3-bedroom townhomes:

• From the early 2000s: Rent ranges from about $5,500 to $6,000.
• From the 2010s: Expect to pay under $7,500 to $8,000.
• From the 2020s: Rental prices hover around $8,000 to $9,000.

Townhome or House: Which is Better to Own?

Let’s tread carefully as we navigate this loaded question. As mentioned earlier, townhomes boast several advantages: they’re easier to maintain, lock up and go, and generally have lower carrying costs. Plus, many townhome owners adore the incredible walkability and proximity to all the best Coconut Grove has to offer!

However, if space, privacy, and potential appreciation are high on your priority list, a house might be the better option for you. With more room to spread out and greater potential for value appreciation, houses offer a different set of perks compared to townhomes.

Ultimately, the choice between a townhome and a house boils down to your individual needs, preferences, and long-term goals. Whether you prioritize convenience and community or space and investment potential.

And finally …. What Can You Buy If You Do Sell Your Townhome?

If you’re eyeing a budget of $2.6 – 3 million, areas like South Miami, Pinecrest, and Coral Gables West of US 1 await with open arms. Here, you can snag if you move swiftly a spacious 4-bedroom remodeled home complete with a pool and a charming yard, perfect for hosting those long-awaited playdates, BBQs, and birthday parties that were previously out of reach due to space constraints.

But wait, there’s more! If your budget stretches between $3 to $5 million, now might just be the perfect time to sell. Inventory in this price range has seen a slight uptick in the last 6 months, offering you a greater selection of homes in sought-after areas like Coconut Grove and its surroundings.

However, if your budget falls under $2.5 million, it’s a different story. Finding something more appealing than your current townhome might prove to be a challenge. In this case, it might be best to hold off on selling for now and continue enjoying the perks of your current townhome.

So, whether you’re dreaming of upgrading to a spacious haven with all the bells and whistles or simply gathering information on the current market don’t hesitate to give us a call  so we can help you weigh your options and help you make a better decision in this ever evolving market!

Not interested in listing your property?  Not an issue, we get daily calls from relocation buyers and will be able to link one of our own clients to your townhome.

Not sure where to move to next?  We can help you find your property on or off-market. We speak to sellers on a daily basis and we might be able to find you  an off-market property.

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