Despite the volatile real estate market in The City of Miami, the Coral Gables market was quite stable. The were no rapid price increases followed by price reductions. On the contrary, The Gables was smooth + steady, and this has resulted in very little (if any) price corrections during recent years. It’s quite impressive when you think about everything that’s been going on in other sectors of the Miami real estate market.
1. Average Price per SF remained steady, with a slight increase to List Prices.
2. Luxury properties tend to appreciate less quickly than properties in lower price ranges.
3. The lowest price per SF is following the lead of the Average Price per SF. There is an increase (year over year) but it’s not a steep increase.
In addition, the highest prices paid does have an effect on other properties offered for sale. The sale of a property located on the open bay, for example, can lift the average sale price considerably from one year to the next. In a market with an increasing number of price-conscious buyers, we continue to see the Coral Gables luxury market showing signs of increasing buyer confidence.
Arguably, more important than the price per SF, is the # of months of inventory. This shows the supply/demand relationship, which is the best prediction for the future. 12 to 18 months of inventory is a balanced market, while less than 12 months is a seller’s market. The # of months of inventory for the Coral Gables luxury home market provides for a bullish outlook. We’re witnessing decreasing inventory with an average of 40 months inventory. Although this is not a seller’s market, it is not a very high number for the ultra-luxury market.
Looking at historical data, Coral Gables had 100 months of inventory during the the last recession. However, during the last 5 years, inventory has remained quite stable.
Waterfront Properties in Coral Gables
In the $3M+ sector, most sales in the Gables were located on a waterfront lot.
Waterfront homes sell $200 to $300 per SF more than dry lot homes. The type of
waterfront the property is located on can also influence the price.
Buying Land in Coral Gables
Many buyers prefer to build their dream home and continue to look for a vacant lot in
Coral Gables. In 2017 and Q1 2018 we saw Lots selling between $36/sf up to $150/sf.
This translates to $900k $7,5m.
Waterfront lots with ocean access sold on average for $139/sf, while a lot on a lake in
and gated community (e.g. Hammock Lakes) sold for $98/SF.
Non-waterfront lots sold on average for $61/sf.
Lots east of US1 sell on average for $106/sf, while west of US1 Lots sell for $69/SF.
Advice to Sellers of non-luxury properties:
Just because things look good for properties priced higher does not necessarily translate to a higher price per sf across the board. Yes, property valuations have increased –
For one-on-one advice to match your unique real estate needs, “Get Wise with The WiseCat” and call us today on +1-305-523-9323.