According to the analytics company, Neighborhoodscout's data, Coconut Grove is today one out of the 3 hottest areas to buy real estate in Miami!
To have a little background, Neighborhoodscout is a company that analyses the micro-economics of the different neighborhoods for each area throughout the United States. It gathers information such as house pricing, property taxes, housing stocks, vacancy rates, and other metrics to understand the neighborhood's behavior. After analyzing the evolution of Coconut Grove for the past years, the conclusion was that the prices for the residential properties have increased against any projection. The average price /sqft has been growing from 2017 to 2018, and it is estimated to keep rising.
What is really interesting about this is that there were 2 townhouses over the $1 million price tag on Oak Avenue. This is extremely new in the area, and it is fascinating how the market has been evolving. But the important question is why? The Grove has been redefining its identity, and it is now a destination area. A large list of events is now located in the neighborhood, which has brought a new air and especially high demand in the real estate industry.
New developments have been constructed in the area. Five years ago Coconut Grove was mostly houses and townhouses, but now you can find luxury condos throughout the district. Developers such as Related Group with the brand new construction as Park Grove condo or the Terra Group with Grove at Ground Bay. And these are only a few examples. The list of high-end condos is increasing every year, as there are clients looking to buy and live there.
The demand for high-end units in Coconut Grove is increasing. Consequently, condo prices are increasing too. However, even if demand is high and it is normal that prices are rising, some sellers are definitely over-pricing their units.
In the past year and a half, an extensive list of condo prices has been forced to reduce their asking price from the originally listed price. This shows that the prices established at the beginning weren't proportionate to the actual value of the property.
Furthermore, analytical studies show that Coconut Grove hasn't had the best-selling performance. There is a difference between listing a unit and actually selling it. Houses and condos sell for an average of 7% less than the asking price and it takes a total of 105 days to close after the announcement was posted on the market. Nevertheless, the average sale price has increased by 21.8% compared to last year. We notice that there is also a healthy inventory since 2017 that has been maintained until today.
Coconut Grove has shown that there is a healthy real estate market that is being balanced. Even if the owners have been over-pricing their units, the selling price has denied than overcharge, that's why the sold price is 7% lower than the listed one. One thing that is clear is that Coconut Grove is a wholesome market where to invest.