The Coral Gables Real Estate Report, News and Market Analysis | For July 2016
The Coral Gables Real Estate Report | News on Homes for sale in Coral Gables
Coral Gables is one of Miami’s most desired neighborhoods and according to a recent poll among 100 of Miami’s best agents it was concluded that the best home market for families was Coral Gables followed by Pinecrest and then Coconut Grove. The tranquil and family friendly area attracts many families because of its central location, the excellent private schools (and for some addresses public schools), the walkability and the safety. Last but not least, Coral Gables has many wonderful and fast appreciating real estate opportunities; from smaller Spanish style homes to multi-million dollar waterfront mansions.
For those who don’t know Coral Gables, please have a look at the video below in which we drive you through the Gables. All the way at the end of this article we included some really useful links regarding Coral Gables Homes for you.
A drive through Coral Gables
A Two Minute Narrative on the Coral Gables Real Estate Market
Quick, Easy and Complete
The Coral Gables Real Estate Report – Inventory levels in 2015 – 2016
As can be seen from the graph below, Coral Gables homes below the 1 million Dollar mark are showing the signs of a well balanced market / seller’s market. Despite being a well balanced market, the demand for Coral Gables homes is higher than the supply in some quarters. The $1M – $2M market balances between a neutral market and a light buyer’s market, while the luxury market of $2M+ homes is in a buyer’s market.
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 Lowest, Average and Highest Sales Prices per Sq.Ft in Coral Gables
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.
Coral Gables saw steady price levels in the last few quarters. In the higher end of the market we saw a small decline in quarter 3 and 4 of 2015 which is normal for the luxury market as fewer homes are sold and the sales of waterfront homes can drive up the prices enormously in some months.
Coral Gables 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 Coral Gables. In the Gables the property prices between $500K and $1M increased by nearly 35% from the mid $200s to the lower-mid $400s. Properties in the $1 – $2M increased with about $100 per Sq.Ft which is approximately a 32% increase. The ultra-luxury segment saw the smallest increase of prices with a 3% 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
Coral Gables much like Coconut Grove is a neighborhood largely populated by Miami’s permanent residents. Few rentals and mostly single family residences, the Gables market continues to be a strong rock and solid place to buy or invest compared to the turbulent Brickell and Beach markets.
Unsurprisingly the Coral Gables market has some of the lowest levels of inventory for any neighborhood. The Gables still tracks behind the Grove in cost of homes and as a result we have seen the Gables continue to improve as a whole. This year we saw a slight correction in the $1-2m range from January but having spent so much time selling and watching the movement this is just the result of buyer offers correcting over ambitious sellers ‘fishing’ the market and who’s expectations were not well managed by their agents in the first place.
The Gables does have the most expensive single family homes outside of Miami beach and the Islands. So in regards to the luxury market we have seen some huge sales (A $23m sale on Tahiti beach in July for example) – which is why the the stats for the luxury band ($2m+) went up. The reality is however that buyers on some luxury homes are hesitating more than at the beginning of the year – this is typical within an election year. The market certainly still has an appetite for homes over $2m and in fact there is more choice now than there was last year as the number of available homes within this bracket increased.
In regards to the sale of new homes there have been 4 new home sales this year and 3 pending. Prices range from a $16.5m sale on Leucadendra Dr in the gated community of Gables Estates to $2.6m for a 4,700 sqft house on Leonardo St. There are currently 13 active new homes on the market in Coral Gables ranging from $1.5m to $20m. $ per sqft ranges from $500 upwards (it can go up to as much as $1,000 per sqft). Many home owners and buyers are looking for homes to update and the target of picking up a good homes for around $400 per sqft then investing $50-100 per sqft into the house can be well worth the investment.
