The Coconut Grove Real Estate Market in 2018 | Are We More Bullish Than Last Year?

With so many new listings, highly trafficked open houses and relocating families looking for Miami homes, we are experiencing a really good 2018. We sold for $40M so far of which $15M closed in June. In our opinion the market has really taken up and Coconut Grove is seeing really low levels of inventory. To see whether this is not just a feeling, we looked at the data in order to see if the numbers support our market impressions of Coconut Grove.

Increasing Prices per SF in Coconut Grove

Coconut Grove recorded price increases across most of its price ranges. The market of properties below $2M saw its prices per SF increase. The luxury-end of the market has softened and specially now in the summer we see less buyers for these properties (the summer is generally very slow for real estate). We are seeing slight price reductions with the exception of homes in the $3M – $5M range.

Also read our most recent reports about:

The Pinecrest Real Estate Market
The High Pines / Ponce Davis Real Estate Market
The Coral Gables Real Estate Market

Extremely Low Amount of Months of Inventory in Coconut Grove in 2018

Months of inventory is an indicator to show the absorption rate. It shows you how fast current inventory will sell based on prior data. Months of inventory is arguably the best indicator for future price changes.

• A balanced market shows between 6 and 9 months of inventory (In luxury markets we often say 12 to 18 months are balanced)
• Below 6 months of inventory we speak about a sellers market. A sellers market means there is more demand than supply and prices are likely to go up
• More than 9 months of inventory indicates a buyers market. This market is characterized by more supply than demand and prices either remain stable or will need to be adjusted (depending on how many months of inventory of course)

From the graph below you can see that the Coconut Grove market has shown very low levels of inventory in both 2017 as well as in 2018. We are predominantly experiencing a neutral market, which means the market is very balanced and healthy. This is rather normal for the Grove. This section of Miami saw slight increases of inventory in 2015/2016, which were followed with some minor price corrections and the market is now in balance again.

Also remarkable is that the Grove’s distribution of price ranges remained rather stable. Looking at the three tables we see a very steady distribution.