I am sure you have read the many articles published these past few months regarding the growth and stabilization of the real estate market. Coconut Grove townhomes are a perfect example of the change in the market. The numbers below will illustrate the startling journey the market has gone through.
During 2006, when the market was peaking, approximately 86 townhomes were sold in Coconut Grove. Seven units closed at over $1,000,000 with premium properties closing at slightly over $500 x SF. Only 42 units (less than half) sold at $500,000 or below.
In 2007, when the market was starting to falter, 82 townhomes sold in total. Six units sold at over $1,000,000 with one townhome selling for a high $620 x SF. Forty units sold at $500,000 or below.
By 2008 the market had deteriorated resulting in only 50 townhomes sold. The highest price paid during that year was $675,000 and the highest per square foot sale went for $372 x SF. Foreclosures and shortsales had started to creep in to the market. Sellers who could afford to do so decided to wait for the market to change. Inventory levels plunged.
2009 and 2010 showed little improvement . In 2009 only 2 townhomes sold at over $1,000,000 with the top per square foot sale going for $335 x SF. Of the 57 closed sales that year a total of 45 units (about 80%) sold for $500,000 or below. During 2010 65 townhomes were sold with only one property closing at over $1,000,000. Of these 65 units 52 sold at $500,000 or below (80%). 15 were short sales and 9 were foreclosures. These were the 2 worst years in history for the overall market.
The past 2 years, 2011 and 2012, have been tough but have definitely signalled the turn of the market. 2011 saw sales jump to 78 townhomes. Two sold for over a $1,000,000, one actually closing at a premium $2,600,000 ($524 x SF) a price not seen since the peak years. However, with 15 shortsales and 8 foreclosures prices still felt a significant amount of downwards pressure. At this point buyers felt confident that the market had bottomed out and were ready to buy. An interesting thing happened: with increased interest from buyers and a skimpy inventory bidding wars began! 2012 saw sustained sales levels with 79 townhomes selling. Two sold for over $1,000,000 with the highest per square foot sale coming in at a healthy $484 x SF. Although 18 sales were short sales and 6 were foreclosures, banks had followed the trend of rising prices and increased their asking prices as well. The pressure on pricing has gradually decreased.
What can Buyers and Sellers expect going forward? Currently there are only 34 townhomes for sale in Coconut Grove, 4 of them are listed between $1,500,000 and $2,100,000. Fourteen units are listed at $500,000 or below. More significantly, only 3 shortsales appear and only one is a foreclosure. The high amount of cash buyers and financed purchases requiring a higher equity add solidity to the market. The tide has turned, prices will increase and the market will continue to stabilize.
If you are interested in selling your Coconut Grove townhome (or buying one) please call or email me. I am a Coconut Grove resident with experience and knowledge of this very specific market. I can help you make the right real estate decisions.