Coral Gables Real Estate is Still Moving Despite Coronavirus

Covid-19 has brought along a decrease in inventory while the demand for Coral Gables Homes has never been this high.

Last week I spoke with people who assumed the Miami real estate market suffered during the coronavirus. This opinion was based on articles they had read in local or nationwide newspapers. I asked them what price range and what part of town they referred to, which was answered with “They discussed the Miami Condo market and did not mention specific price ranges”. This is my problem with generalized articles written by reporters. These articles and general market updates do not separate condos from homes and they do not discriminate between the different price points or neighborhoods. When looking at the Gables market, one of Miami’s largest single-family home markets and my main area of expertise, I personally experience a market that is incredibly hot (actually for me personally the hottest year ever) and not suffering from the current pandemic at all.

In this article I will discuss how I experience the Coral Gables market in times of Corona while also providing you with MLS data.

Coral Gables Homes of $1M – $2M

This price range was already mentioned as one of Miami’s hottest markets in the first chapter of our 2020 Miami Real Estate Report. As can be seen in the table below this price range saw a big drop in amount of new listings in the second quarter of 2020. An almost 100% drop from the same quarter the year before (90 vs 47). People always look at the demand side of the supply/demand curve, but tend to forget the supply side. With locals looking for good quality homes near Miami’s best private schools before their kids start a new school year and the incredible influx of relocation buyers we see a high demand while the supply has dropped. With just a limited selection of homes (let alone quality homes), sellers of well finished homes find themselves in a sellers market in which they are able to raise their asking price. Just two weeks ago a client of mine made a full price offer on a good quality home in this price range and we were told there were 4 full price offers on the table, resulting in a bidding contest.
We did see less sales in this price range as closings and showings were often put on hold. It is no surprise to me that prices in the second quarter have seen an increase with less discount on the final asking price.

Coral Gables Homes of $2M – $3M

Most of my relocation clients are looking in this price range and I see a massive demand for these homes as well. Q2 2020 Saw the same amount of new listings and 6 closed sales compared to 8 closed sales in Q2 of 2019. Prices saw a significant drop, but 2019 saw 75% of its sales being waterfront homes compared to just 33% in 2020. On the other hand we are experiencing a massive lack of high-quality or well finished homes in this area, which translates into relatively low prices per SF. I am actually reaching out to owners of off-market properties to provide my buyers with better and more choices.

Coral Gables Homes of $3M – $5M

This is also a very desired price range for relocation buyers and the working wealthy looking to live close to Miami’s best private schools. The table tells us Q2 of 2020 saw less new listings (11) compared to Q1 in 2019 (16 new listings) and a drop in sales. Comparing prices based on sales is a bit challenging as 2019 saw only waterfront sales and 2020 saw only dry lot sales.