The #'s are in for the 3rd Quarter and today we are looking at what is happening in the Coconut Grove Real Estate Market?
Here is a snapshot of where the market stands for the 3rd Quarter. Since we have waterfront homes in Coconut Grove we highlight them in light blue, and even though they make up a small part of the market here, we still like to put them up.... So you see 7 are Waterfront, 100 Not, 35 Closed Sales, only 2 Waterfront and 9 and 11 Months of Supply - the #'s look ok, not great. Below... we clearly see that we have good sales activity up to $10 million, then above $10-Million we have Zero Sales for the Quarter... showing a slow down at the higher end.
We are seeing this in the condo market also but there the price range is lower at around $3-Million+ where sales are dropping off. The highest priced closed sale was for $8.7-million a home on almost 2 acres which we can see sold for land value. Next we compare the 3rd Quarter to the previous 2 Quarters to see if we can spot any trends... and most of the Key Indicators are down for the year... Actives, Months of Supply and Days on Market are at their highest levels for the year, while Closed Sales are at their lowest, however pricing seems to be holding which is good but Overall the #'s do not look good.
Let us explain a bit more, when you see Active Listings increase while Closed Sales decrease this causes Months of Supply to increase. Add to this Days on Market increasing and these are all signs of a slowing market which in theory should start bringing prices down, which here we do not see, so let's see what happens in the 4th quarter. One other thing we want to point out is that there were 2 Closed Sales for waterfront homes in the 3rd Quarter which have been the only 2 for the year, so obviously not a big part of the market but we like to put them up here for you to see.
As it gives you market knowledge. If you are a Seller in Coconut Grove the #'s are a mixed bag... we are starting to see this market level off and move to a more balanced market while pricing seems to be holding, but if this continues like this we feel we will start to see prices being affected. The trick here is to price your home accordingly from the start to attract as much attention as possible from Day 1.
We also want you to know that this market will reward you if your home is in turnkey condition, but punish you if it is not so please consider this before listing. For Buyers - prices seem to be holding steady, but Active Listings have increased and Sales have slowed causing Months of Supply to increase which is good for you, so be patient and Now that Interest rates have moved below 6.5%, all good signs for you.
Overall, the #'s for the 3rd Quarter for single family homes in Coconut Grove are sending us mixed signals as pricing seems to be holding while all other key indicators are down. We need to see if this holds for the 4th Quarter. And while Days on Market is higher at 48 Days and 109 Days for waterfront, given the high Median Price Sold of $2.4 Million and $7.5-Million we feel this is still good, but it is at the highest level for the year.
From our experience, these are signs that the market is starting to level off to a more balanced market, typical of what happens in a correction which we have been in for the last 2 years as the market is trying to find it's new base level. On a positive note, interest rates have moved lower and are now under 6.5 % which should help sales for the 4th quarter, so lets see.
I am Jose Laya, and as I start my 20th year in the Miami Real Estate Market I can proudly say that our goal in making these these videos is to help as many people as we can by sharing real market data to give you a better insight into the local market.
We thank you for watching, and we'll see you soon.