Coconut Grove Journal of REAL ESTATE
Q1 2018 Performance Report By Alba Biondi and Isabelle Andrews
TheTeam@GroveExperts.com GroveExperts.com The image of this flower was created by Lisa Remeny, an internationally renowned artist, Miami native, and longtime resident of Coconut Grove.� mail@LisaRemeny.com 305.854.9485 LisaRemeny.com
The Grove Experts Report Q1 2018
The first quarter of 2018 showed signs of a slowing Coconut Grove singlefamily market, with the number of homes for sale (“inventory”) on the rise and fewer homes sold. This slowing market is best evidenced by an increase in available market inventory. The number of homes available for sale in Q1 grew by 20% (174 homes versus 145 homes) when compared with Q1 2017, while the total dollar value of all homes for sale grew by 13% when compared with Q1 2017 ($437,194,000 in Q1 2018 versus $353,917,000 in Q1 2017).
Number of Single-Family Homes Sold During Q1 2018 Versus Available Homes for Sale PRICES
≤$1M
$1M-1.5M
$1.5M-$2M
$2M-$3M
$3M+
# Homes Sold Q1 2018
26
5
2
5
2
# Homes Available for Sale
42
32
28
40
32
5 months
19 months
over 3 years
2 years
4 years
# Months of Inventory
A normal or healthy real estate market typically has 5 to 6 months of available inventory (calculated by dividing the number of active listings on the market by the average number of homes sold per month during the previous 12 months). Today’s market for single-family homes priced at less than $1 million appears to be healthy, with approximately 5 months of supply. The luxury homes market, however, continues to demonstrate an especially pronounced slowing trend, with more than 19 months of supply, as demonstrated by the table above. When analyzing the number of homes actually sold in Q1 2018, we also see signs of a slowing market. As of mid-April, there were 34 pending sales, which is a positive sign for the second quarter. By next quarter, the year-to-date number of sales may be comparable to last year.
First Quarter Coconut Grove Single-Family Market Performance
# Homes Sold
Q1 2018
Q1 2017
40
48
% CHANGE 17%
Total Volume Sold
$62,469,000
$73,759,800
15%
Median Sold Price
$890,000
$1,034,500
14%
Median Sq.Ft. Sold Price
$441
$455
3%
All material in this journal in intended for information purposes only and has been compiled from sources deemed reliable. Though information is believed to be correct, data sources are subject to errors, omissions changes, or withdrawal without notice. This is not intended to solicit property already listed. Equal Housing Opportunity practice.
The number of homes sold and the total volume in Q1 2018 have decreased by 17% and 15% respectively. Interestingly, the median per square foot sales price has essentially remained the same (only a 3% decrease), which indicates that the increased inventory has not yet caused sale prices to decrease. An oversupply in the luxury homes market has already reduced buyers’ urgency to make an offer at the asking price and has given buyers greater flexibility in negotiating the final purchase price. Luxury homes that are priced appropriately get many solid offers. Audaciously priced properties only receive competitively priced offers or no offers at all. If inventory remains high, expect this to place downward pressure on home sale prices.
New Construction Single-Family Market
The new construction market (homes built in 2014 and after) offers 23 single-family homes for sale. This market saw only 4 homes sold during Q1 2018 (the same number as last year), with a median sales price of $558 per square foot for nonwaterfront properties and $1,048 per square foot for waterfront homes. Available inventory decreased compared with last year (18 homes compared with 23). This demonstrates that this segment of the market may be able to sustain the same prices. We want this edition of the Coconut Grove market report to be useful and informative. This data has been compiled by us, and the assessment of the market is the product of our own study. We do our absolute best to provide you with the most accurate information. In a changing market, the advice of an expert is crucial. This is what we provide. Should you have any questions about your property, please do not hesitate to contact us. Our market analysis can also be found on our website GroveExperts.com.
Coconut Grove Single-Family Market Performance Single-Family Coconut Grove Waterfront Market 1 home sold. Sold Price $19,750,000 1 home sold last year during the first quarter 2017 for $12,400,000. Single-Family South Coconut Grove Market 18 homes sold – Minus 28% over last year Total Volume Sold: $24,677,500 – Minus 38% over last year Highest Sale: $4,250,000 Lowest Sale: $592,500 Median Sales Price: $970,000 – Minus 30% over last year Median Sq.Ft. Sales Price: $431 – Minus 12% over last year
Single-Family North Coconut Grove Market 13 homes sold – Minus 31% over last year Total Volume Sold: $14,696,500 – Minus 26% over last year Highest Sale: $2,250,000 Lowest Sale: $571,000 Median Sales Price: $990,000 – Plus 16% over last year Median Sq.Ft. Sales Price: $441 – Same price as last year Single-Family West Coconut Grove Market 8 homes sold – Plus 166% over last year Total Volume Sold: $3,345,000 – Plus 179% over last year Highest Sale: $570,000 Lowest Sale: $225,000 Median Sales Price: $432,500 – Plus 13% over last year Median Sq.Ft. Sales Price: $347 – Plus 32% over last year
We Just Sold
3834 Kent Court Was offered at $1,999,500
3585 Irvington Ave Was offered at $1,299,000
Yacht Harbour, Unit 8D Was offered at $499,000
3064 Shipping Ave Was offered at $490,000
Are you thinking about selling? Be sure to hire an expert in the Coconut Grove market. You deserve local expertise and the finest national and international marketing. This is what we provide. We speak English, Spanish, French, and Italian. Alba Biondi / 305 323 2595 Isabelle Andrews / 305 546 5421 #1 Top Producers EWM Coconut Grove Office TheTeam@GroveExperts.com GroveExperts.com