Should I Sell my Coconut Grove Condo in 2017
Should you Sell Your Coconut Grove Condo?
Many recent reviews of the Miami condo market show high inventory levels and decreasing prices. What most of these reports fail to recognize is that the Miami market cannot be generalized. Many of the reports are written without distinguishing between neighborhoods or price ranges. A $750K condo in Coconut Grove sees a different performance than a $4M Brickell condo or a $1M dollar Miami Beach condo. Because of these generalized reports, often written by people who do not experience the Miami real estate market on a daily basis, condo owners might get nervous. I wrote this article to shed light on the current Coconut Grove real estate market and to give the readers the latest numbers, combined with the professional day to day experience of a top producing Coconut Grove realtor.
The Coconut Grove Condo Market
We are currently writing the 2017 mid-year Miami Real Estate Report for which we show the performance of all Miami’s main residential areas. The below data were collected for Coconut Grove condos. The narrative provided is a combination of our data analysis and our day to day experience in the Coconut Grove condo market.
Months of inventory are the months it would take to sell all current listings if no listings are entering the market. As a general rule we say that:
- 6 Months or less (12 Months in luxury market*): Sellers market, more demand than supply with sellers having an advantage over buyers and prices are likely to increase.
- Between 6 and 9 months (12 – 18 in luxury market*): A Neutral or balanced market.
- 9 Months or more (18 in luxury market*): A buyers market with more supply than demand. Buyers are experiencing an advantage and prices need to be corrected in order to stabilize the market. This type of market leads to price decreases.
- Luxury Market is the $1M+ market
In the first table you see the current lower average, average and higher average sales prices per SF. The lower average is the average of the three most affordable sales, while the highest average is the average of the three most exclusive sales. This will get you a good indication of the price point of your condo. When we look at the market performance of Coconut Grove condos compared to 2016 we see that the lower end of the market saw slightly increasing prices (1%). Buyers in this market seem to be more price conscious and less willing to pay a high dollar amount per SF.
While the $1M – $1,5M market seem to have decreased we need to mention that there were limited sales (Less than 10) in each year and 2017 did see less quality units being sold (less quality finishes mostly) than the year before. This 8% decrease therefore should not be seen as a decrease of the actual market value.
The luxury market saw a massive increase in the average price per SF, mainly because of the resale of Grove at Grand Bay, a brand new luxury condo. If you take all the Grove at Grand Bay sales out of the analysis, the overall market still surpassed 2016 by 2%.
I own a Coconut Grove Condo – What should I do
Looking at the Coconut Grove condo market we see that the average prices are stable. In general we can say that the market is steadily increasing in value. Regarding the months of inventory, which is the best indicator for future values, the Coconut Grove condo market is one of the few markets that does not show high levels of inventory. Actually the market up till $1,5M shows very limited months of inventory of respectively 6 (sellers market) and 7 months (Neutral market). The higher end of the market is showing one of the lowest numbers in inventory in luxury condos in Miami. As the luxury end of the market is experiencing a slow down in general, this number is not to be worried about. The Grove only offers a handful of these ultra-luxury condo towers and there are no more oceanfront lots to build new inventory.
With the months of inventory in mind I would say now is a great moment to sell. Especially in the more affordable market we see a sellers market with more demand than supply. It is my experience that it is hard to find a good quality unit below $1M. Therefore if you have a good quality unit you might get a good price for this unit. Be aware that fishing for high prices is not that succesful in today’s market. As you can see from the data, the higher price range in each sub-market decreased in value meaning buyers are increasingly price conscious. If you want to sell, I advise you use the mentioned sales prices as your guide.
In case you don’t want to sell yet, there is nothing to worry about. It is not essential to sell this year and holding on to your unit might be a good idea as well, depending on your personal needs
For a more in-depth assessment of your Coconut Grove condo you can contact me at +1.305.508.0899