In Miami-Dade County, there were 46.2% fewer single family homes for sale at the end of September 2009 than there were at the end of September 2008, and there were 33.7% more sales recorded in September 2009 than there were in September 2008. The condo and townhouse market was similar with inventory levels down 29.4% and sales up 39%.

The Village of Pinecrest: 18.1% fewer homes on the market and sales up 171.4% from the same month a year ago. Available condos and TH’s went down 49.5% while sales remained steady with no increase or decrease.

The Village of Palmetto Bay: Inventory levels went down 47.9% while sales went up 47.1%. Condo and TH’s , quantities for sale decreased 41.7, sales went up 100%.

Cutler Bay: 61% fewer homes for sale in Sept. 09 than there was in Sept. 08. Sales shot up 52.2% Condos and townhouses numbers went down 43.2% while sales increased 400% from the same month last year.

Still not convinced the market is shifting? Take a look at the 5 year graph for Miami-Dade County real estate activity.

So what does this mean?

If you’re a buyer, your options to choose from are a great deal fewer today than they were last year. Fewer homes to choose from means competition with other buyers.  Multiple offers are already occurring. As competition grows, so will the odds of you paying a higher price. Higher prices turn into higher appraised values for similar homes. Property values stop decreasing,  level off, and start to rise again.

Bottom line… if you plan to buy, it really is time to get serious.

This Is A Big Change!   It shows that people are buying because the prices reflect an understanding by the sellers of what the public will pay.  During this period properties sold increased by 24.8%.  Prices have met the market.

A decline in inventory of properties for sale combined with an increase in properties sold will force fresh inventory to fill the gap.

This is a better time to sell than it has been in two years.

The average price per square foot sold in AVENTURA  went up from 282 a square foot to 323 a square foot.  Good News.  AVENTURA  inventories are declining as well.

Look through my Home Search.  This is the best time to get a really good buy.  Prices will start to stabilize soon, and opportunities to buy at the bottom will disappear.

A majority of the luxury condos are found in The Grovenor House, The Ritz Carlton Residences and Grove Isle.

The lowest “Price Per Square Foot” (the best bang for your buck) luxury condo on the market right now is Unit #503 at The Grovenor House.  The unit is listed at $490.00 per square foot and features a terrace that is extra large, 3 bedrooms, 3.5 baths, 2,640 square feet of living space and some water views.  It is now priced at $1,299,999 and was initially priced at $1,490,000 when it came on the market in March and is listed by Ingletto Realty.

The highest asking “Price Per Square Foot” ($1,855.00 PSF) in the luxury condo market is the Penthouse at The Grovenor House which is going for $16,900,000.  This is a 5 bedroom, 5 bath unit with rooftop terrace and pool and is listed by Sotheby’s.

To view all luxury condos on the market in Coconut Grove, click here.

There have been only 5 closed luxury condos so far this year in Coconut Grove.

To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.

If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.

Closed Sales In Gables Estates 2009

Closed Sales for 2009

3 Bedrooms – 2 Baths – 2,241 ADJ SQFT – $708,000

Click here to see entire article by Ron Shuffield.

South Florida Residential Market Update August 2009

Many signs point to stabilization of Real Estate prices, signaling a healing in the housing crisis and an end to the steepest price decline in years. Below I have listed some of the positive and negative factors influencing the market.

POSITIVE FACTORS:

The August 25th Case-Shiller/S&P price index showed its second consecutive monthly gain in June, with 18 of 20 markets showing price increases. The Case-Shiller index is the industry standard for tracking national housing price trends and uses a three-month average, thus the latest figures represent April, May and June.

Existing home sales rose 7.2 percent in July, representing the largest increase in more than ten years (National Association of Realtors). New home sales in July were up 9.6 percent compared to June (U.S. Commerce Department)

The rate of single-family housing starts (U.S. Census Bureau and the U.S. Department of Housing and Urban Development) in July was up 1.7% from June.

Foreclosures related to sub-prime loans, one of the biggest contributors to the housing crisis, have declined (Mortgage Bankers Association).

The Mortgage Bankers Association index of new mortgage applications increased by 5.6 percent (week ending August 14th).

NEGATIVE FACTORS:

Approximately 30% of July exsisting home sales are related to foreclosures and short-sale bank losses (National Association of Realtors).

The Mortgage Bankers Association reported that the number of homeowners behind in their mortgage payments hit a new high during the second quarter of 2009, with one in three new foreclosures between April and June from a prime, fixed-rate loan.

Continued unemployment (U.S. Bureau of Labor Statistics) will continue to drive the pace of foreclosures.

The commercial real estate market is being hit hard by the recession (Federal Deposit Isurance Commission, National Association of Relators).

Because of turmoil in the financial and housing markets, banks are still reluctant to lend (Federal Deposit Insurance Corporation) during this period of record loan delinquencies and econonmic uncertainty.

CONCLUSIONS:

It looks like the recovery is occurring from the “bottom up”, with exceptional deals in lower-priced properties being snapped up first. The data below shows the relationship between year-to-year sales and price category.

U.S. Existing Home Sales 2008/2009

$0 – $100,000 Up 38.8%

100,000 – $250,000 Up 8.7%

$250,000 – $500,000 Down 6.2%

$500,000 – $750,000 Down 8.9%

$750,000 – $1,000,000 Down 10.6%

$1,000,000 – $2,000,000 Down 23.3%

$2,000,000 + Down 32.4%

Source:　 National Association of Realtors (July 2009)

When the national employment picture improves, broader economic recovery will take hold, demand will increase and the market will turn around. Because of excess inventory, recovery for much of the condo market will lag behind single-family homes.

Even though it is likely we are nearing the technical end the “Great Recessionm”, which began in December 2007 (National Bureau of Economic Research), it is likely that recovery will be a gradual process that will occur over a period of years.

TIME TO BUY:

As an investor, we are currently in a window of opportunity for properties under $300,000, especially in desirable neighborhoods such as Coral Gables, South Miami and West Miami (west of Red Road across from Coral Gables). The best deals are available to buyers with readily available cash. In economic hard times “cash is king”.

For a primary residence to live in, the best deals are mostly in Coral Gables, where foreclosure rates have been higher than in Coconut Grove or Pinecrest.