The Coconut Grove Real Estate Market Report for Q4 2020 | What to Expect Going into 2021?

Coconut Grove Homes for Sale | What to Expect Going into 2021?

Those who read part 3 of our Q2 and Q3 Miami real estate report (The Miami Real Estate Market before and during Covid-19) already know the strength of the Miami single-family home market. Coconut Grove is one of Miami’s most desired residential areas and demand for homes in the Grove is tremendous. Please read below how the Coconut Grove real estate market performed in the last 6 months of 2020 and what we expect to see in 2021!

The David Siddons Group closed on this beautiful new construction on 3608 Stewart Ave in Coconut Grove for $5,350,000

Coconut Grove Real Estate Market Report | Q3 and Q4 of 2020

Coconut Grove is one of Miami’s top three residential areas. The Grove is centrally located, safe and most importantly the neighborhood is close to the city’s best private schools. Like most single-family home markets, the Coconut Grove home market saw an incredible increase in demand after June 2020 when restrictions were lifted and many relocation buyers started looking for a Miami property. In Q3 and Q4 of 2020 we saw more sales than in the same period the year before and we saw the average sales price per SF increase. Compared to 2019 less discounts were given on the listing price, except for the $1M-$2M range which recorded only 6% of discount compared to 7.2% in the year before.

Arguably the most important table here is the one with the months of inventory. We provide you with months of inventory based on closed sales and months of inventory based on closed sales and pending deals. This because the pending deals are in fact under hard contract and will most likely close within a month or two. We see that the Grove is experiencing a very low amount of inventory at the moment, which can be referred to as a sellers market. The $3M-$5M market is seeing most of the inventory, which is still very absorbable.

With this lack of inventory comes the Grove’s biggest threat for 2021 and that is: good-quality product. The Grove is a geographically small market and does not offer many homes to begin with. Most relocating families are looking for homes that are either brand new or completely updated/remodeled. In 2020 we did not see many new or updated homes specially in the market below $3M. We experienced that good quality or newer homes were sold in days leaving those buyers who weren’t fast enough empty handed. This drove many buyers into Coral Gables that has more to offer and product is often newer or more updated.

Coconut Grove Real Estate Market Report | What to expect in 2021?

Relocations are still a hot topic. These days more and more prominent companies are moving to Miami and as they make the move so does their management team with their families. Families are moving to Miami for its great lifestyle and favorable tax structure and are positively surprised by its development of high-end office space and superb private schools. With the current hype around moving to Miami we expect 2021 to be equally bullish.

80% Of our inquiries is for Coconut Grove, but as we have mentioned before the biggest threat in this market in the lack of updated or new homes, for which the demand is highest. We currently see 100 active listings of which only 11% is a brand new 2020 construction and just 25% is a construction from 2015 or after. From that 25% of newer homes, the majority is in the$3M+ market. The lack of newer listings often drives buyers to other areas such as Coral Gables, which is much larger and offers a greater amount of updated homes. Whenever a new or good quality listing comes to market we see it selling within days. We listed two modern, updated homes in Coconut Grove and we experienced a very high amount of calls/emails/showings and offers.  One of these homes sold in 4 days and the other one already got two offers.

If you are a buyer in this market you need to be ready to make an offer as good quality product moves quickly. Please contact us as we often have off-market product or we know about new homes entering the market soon. We can give you the inside scoop on new homes before the rest of the market is aware of it. If you are a seller who is even remotely thinking about selling, please give us a call at (305) 508.0899. This is not a poor attempt to get a listing, this is a serious request for us to serve our relocation buyers. We get daily calls from all over the United States (and the Globe) of families looking to buy in your area. We need your home and we have the buyers.

Coconut Grove Real Estate Market Report: Which Coconut Grove Homes sold in 2020?

Please find below several homes that closed in the last year to get a better glimpse of what is selling!

4061 Matheson Ave sold for $2,225,000 or $556 per SF. The property was just 4 days listed for $2,275,000 before it was under contract

3608 Stewart Ave sold for $5,350,000. It was originally listed for $5,649,000 and this brand new 2020 construction was sold to one of David Siddons’ buyers

3604 Matheson Ave in the exclusive community of Entrada Estates sold for $6,680,000 or $998 per SF. This waterfront home was listed for  $7,290,000 and sold in just 27 days