Although the Miami real estate market continues to make solid gains, it does not necessarily mean that it is not a buyers market, as a thriving citywide real estate market and buyer-friendly deals are not mutually exclusive. Real estate in Coconut Grove usually sells at a premium compared to other neighborhoods in South Florida; however, current data indicates that the market for condominiums in Coconut Grove could favor buyers.
Sales trends show that while the number of properties sold this quarter has risen over the previous, the dollar volume, average sale price and price per-square-foot for Coconut Grove condominiums have dropped by more than one-third. In the most recent quarter, the total dollar volume from transactions within the Coconut Grove condominium market decreased 36 percent to $11,505,650, down from $18,103,430 the previous quarter. Additionally, the average sale price saw a similar precipitous drop, as the average for the quarter was $605,560, down from $1,206,895 over the previous three months, a 50 percent decline. While average sale price is not necessarily the strongest indicator of market value, as it fails to account for variations between properties, price per-square-foot is a far more meaningful statistic as it accounts for property fluctuations within the market. Over the previous quarter, price per-square-foot for Coconut Grove condominiums stood at $523.79; however, this past quarter, that figure decreased 40 percent to $315.39.
Further, with Coconut Grove’s six-month absorption rate at 5.6, months supply of inventory (“MSI”) currently sits at just over 9. This is significant as the market shifts in the buyer’s favor when the MSI exceeds 7. However, considering that 22 of the 52 listings within the Coconut Grove market are within one building, the Ritz Carlton Residences, the MSI is admittedly a little inflated. With this market outlier removed the MSI falls to around 6, which would indicate a more balanced market. Looking at current listings for Coconut Grove condominiums is a testament to the current state of the South Florida real estate market, although it is evident that the current Coconut Grove market is a little over-priced. With an average list price of $1,776,811, sellers are asking $696.90 per-square-foot, a 120 percent premium over what the market has demanded the previous quarter. It makes sense that while over the past quarter pricing and dollar volume has trended down, total transactions have increased over 25 percent.
For those looking to purchase a Coconut Grove condominium, now is the time. With property values throughout South Florida on the rebound, it is imperative to take advantage of these market respites, however brief, in order to assure a sound investment. If you, or someone you know, are interested in purchasing a condominium in Coconut Grove, please contact me. I appreciate the opportunity to earn your business.