The Coral Gables Real Estate Market in 2018 | How is the Market Performing?

The David Siddons Group got many new listings in Coral Gables in the last month. The open houses are highly frequented, many agents share these properties with their clients and we have seen a high number of interested buyers. Our general feeling is that the market is performing very well; not overheated, but a slow yet steady progress. We looked at the sales numbers* in the last 6 months to see whether the data confirmed our bullish impressions.

*Data are taken over January to July 2017 and January to July 2018

zIncreasing Prices per SF for almost all Price Ranges

Coral Gables recorded price increases in all price ranges except for the ultra-luxury market of $5M+ properties. The luxury market is still soft although we do see some really big sales. The $5M+ properties saw two sales above $2,000 per SF, one in 2017 and one in 2018. Taking these extreme sales out, we see that 2017 saw an average sales price per SF of $825 and 2018 recorded $867 per SF. The $1M dollar market saw the highest increase in value with 9%. This might not come as a surprise to realtors that work a lot in the Gables / Grove area. There is a lot of demand for that product (See also the low amount of inventory in this market; 7 months), but good quality homes in that price range are hard to find. We are currently listing 3600 Toledo Street (see picture) which is listed for just over $1M. The amount of response from buyers and agents is overwhelming.

Also read our most recent reports about:

The Pinecrest Real Estate Market
The Coconut Grove Real Estate Market
The High Pines / Ponce Davis Real Estate Market

A Healthy Amount of Months of Inventory

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)

Coral Gables shows a sellers to a neutral market for properties below $1.5M. The $1.5M – $2M market is very balanced as well, while the $2M+ markets are indicating a buyers market, but with an amount of inventory that is not uncommonly seen in these higher-end markets. The amount of inventory in the first half year of 2018 has not changed much since 2017.

When we look at the price range distribution we see that the most affordable properties ($1M and less) are loosing their market share. In the $1M – 2M dollar range almost the same percentage of properties are being listed as were sold in the last months. The markets of properties above $2M are taking up a high share in the active listings compared to what was sold, which explains the elevated inventory.