Miami’s Best Investment Opportunities: Coconut Grove Homes
The Investment Value of Coconut Grove Homes
Limited Real Estate Inventory and a high demand make Coconut Grove homes a hot commodity
Coconut Grove is one of Miami’s most desired neighborhoods. The excellent location of the neighborhood, the safety and the high-end living make Coconut grove extremely attractive to many wealthy families and real estate investors.
As Brickell is getting more and more crowded, many young professionals or families take the next step in life and move from their condo into a townhouse or single family house. Coconut Grove is a desired place to settle because of its perfect location (nearby the Financial District of Brickell and the business districts of Coral Gables), and because of the many beautiful homes often waterfront or located in a gated community. Together with the excellent private school and upscale living, the area is seen as a perfect spot to raise a family while in the meantime investing in an appreciating asset.
While the demand is rising and inventory is declining, the prices are logically increasing! Look at the table here below to see what the average price per Sq.Ft did in the last 5 years.
As there is limited space in Coconut Grove and few new homes can be build, the demand for homes cannot always be answered by the limited supply of homes. Unlike other Miami areas where home flipping is quite common, Coconut Grove is known for its steadiness and lower turnover of home owners. The limited amount of inventory and low turnover rates combined with a high demand makes the prices increase year after year.
Interested in Coconut Grove Real Estate News? Read our
Coconut Grove Neighborhood Blogs
Read our Monthly Coconut Grove Market updates
What will your budget buy you in Coconut Grove – Coconut Grove homes for 4 different budgets
Read our 2014 Investors Guide to Miami – The Coconut Grove Section
In the table here below it can be seen that properties are sold faster and faster. Where in 2010 the average home took about 4 months to get sold, these days that is slightly longer than 2 months.
The Months of Inventory indicate the amount of time it will take to sell all current listings at the current sales pace if no new listings become available. As can be seen in the graph here below there is less and less inventory available in the Grove.
Because of the limited inventory, the newest trend among top producing agents is to reach out to home owners, to see whether they would consider selling. Another trend for buyers is to buy vacant land or older properties and to build their own dream home.