The 2019 / 2020 Coconut Grove Real Estate Forecast

The 2019 Coconut Grove Real Estate Forecast

Register to Receive Our 2020 Q2 & Q3 Miami Real Estate Report | The Miami Market Before and During Covid-19

The 2019 Forecast for Coconut Grove Homes

 

  • We expect a continued stable, if not strong, sub $1M market. It will remain increasingly difficult to buy into this market, as there is VERY VERY limited supply.
  • The sub $2M market will remain stable assuming we avoid extreme interest rate spikes and/or sizeable national or global economic movements.
  • The $2M – $3M home market will soften as it will in all other markets, but less so. The very luxury market of $3M+ homes will experience a slow down as well, which is atypical in other markets apart from waterfront, which is extremely limited.
  • There will be continued lack of new product within the Coconut Grove market. This market is very dry up till $3M.
  • Higher construction costs and zoning law tightening will further slow the construction of new homes.
  • We won’t see any record breaking sales this year, although we will still see some very strong sales due to the unique nature of this primary market with highly desired homes.
  • We will see a lack of rental product for single-family homes. The rental market is seeing a low inventory due to Airbnb rentals and increased demand for rentals by buyers who cannot find their dream home and decide to rent for a year.
  • We will continue to see the Grove and the Gables as the best performing market for homes in 2019. They will continue to outperform other market also in the luxury market.
The 2019 / 2020 Coconut Grove Real Estate Forecast

What Does this Neighborhood Economic Health Score Mean?

Using the human body as the perfect metaphor, this neighborhood health score indicates the current economic health of an area and its likelihood to fall ill or to be susceptible to illnesses. It measures the market’s elasticity; it is about robustness and resilience of the market against economic change.

The 2019 / 2020 Coconut Grove Real Estate Forecast
The 2019 / 2020 Coconut Grove Real Estate Forecast
Download the Full 2019 Miami Real Estate Forecast here!

Advice for Coconut Grove Buyers

The sub $1M and $1.5M market has a definitive lack of product. If you are looking for anything under $1M and nothing really ‘turnkey’ expect a renovation project or again move your focus to the cheaper sections of Coral Gables. Call me for the specifics of what those areas are

Brand new homes or larger homes over 4,500 SqFt are in scarcer supply and due to higher construction costs and zoning laws this will only become more challenging to find. Most of the inventory sits between $1.5M and $2.5M with just a small amount over $3M. I do keep a solid book of ‘off market’ properties, so please call me for details of those.

The higher end of the market ($2M+) will experience some softening, which will present better opportunities for buyers.

Advice for Coconut Grove Sellers

Homes over $1.5M will sit longer on the market or go unsold, if sellers are not aggressive or right on point with their pricing. Older homes and homes in need of updates will also turn off potential buyers and will end up sitting on the market for a much long period
of time if not priced close to the true market ‘sales price’. Poorly or incomplete finished spec homes will suffer as well due to the more discerning and careful buyers we are seeing in 2019.

A strong focus should be on relocating families from the North East of the US as the tax implications are driving the largest number of these buyers into our market. We know how to target this category of buyers well, so call me for advice in this specific area.

Don’t expect to bring your property to market and sell within 2 weeks. Buyers are more hesitant than they were last year due to a number of national economic and political uncertainties. Even though this is one of the strongest markets, we will see more hesitation and cautious acting buyers, who won’t run in at full price. Do not ask for more than 3% to 5% above market value to ensure your home does not sit on the market for months. The good news is that there is a good amount of liquidity out there and the buyers are present.

We next the luxury market to tread water for the next 12-16 months but the lack of supply should ensure no serious downturns.

Also see our relocation guide and videos.

Please contact David Siddons for more information on the Coconut Grove Real Estate Market

David Siddons | +1.305.508.0899 | David@siddonsgroup.com

The David Siddons Group is a top-performing Miami real estate group with nearly $100M in yearly sales. David is known as a market analyst and he is the author of several of Miami’s most groundbreaking real estate reports. 

Related Articles