Real Estate Déjá Vu

1996 History Repeats Itself in 2007

 

Good news! I just sold two Coconut Grove homes.
Both clients are very happy. Properties that are competitively priced, well maintained and professionally marketed are selling in all price ranges. Read on for the year-end figures for 2007 and for 1996, which was the second year into our last market slowdown. Continue past the statistics and you can see a comparison of the increase of various values over the last ten years.

Coconut Grove Year-end 2007:
Active on the market: 350
Pending sold: 11
Closed over the last three months: 33

Coconut Grove Year-end 1996:
Active on the market: 384
Pending sold: 50
Closed over the last three months: 41
Coral Gables Year-end 2007
Active on the market: 561
Pending sold: 38
Closed over the last three months: 57

Coral Gables Year-end 1996
Active on the market: 506
Pending sold: 109
Closed over the last three months: 132


While researching some past real estate market statistics, I found the article that I had written in the summer of 1996 for the Coconut Grove Times after the Hurricane Andrew real estate boom had ended. Except for the prices it could have been written this morning!
 
 
We just received the first quarter real estate statistics for 2007 compiled by Joe Parker at Coldwell Banker. The numbers are from the SE Florida Multiple Listing Service.
 
 
In Coconut Grove and just across US 1 in Silver Bluff, Shenandoah and the Roads there were 355 single family homes for sale March of 1996. Eleven years later in March of 2007 there are 376. Pending sales with in the last month where buyers and sellers have agreed on price and terms, but not yet closed there were 27 in 1996 and 19 in 2007. Thirty one had closed in the previous month in 1996 and 14 in March 2007.

 

South Grove Canal Home:  

1996 - $ 599,000
2002 - $1,590,000
   (after extensive renovations)
2006 - $2,345,000

 

                                           

 

      

Now price ranges are distinctly different. Today a home I had sold in 1997 at 4171 Pomona for $160,000 has just resold for $599,000. It had been maintained, but had no significant updates. The same is true in the upper price ranges. In a gated community in South Grove I had had a home listed in 1997 on and off for two years in the $600,000 range. It finally sold in 1999 for $575,000. After a year on the market in 2006 and 2007 in the 2.2 million range I hear that it now has an offer working. Again it is essentially the same house. No changes or updates.   

                                                                                                                                                                                               

March of 1996 there were 24 single family homes over one million dollars for sale and none pending. Today there 143 homes on the market over one million and fifteen are pending.
 
 
The average price for a single family home in South Coconut Grove in 2007 is $1,249,272.

 The average price for a single family home in North Coconut Grove in 2007 is $1,104,333.   

4171 Pamona Ave:  

1997 - $160,000
2006 - $599,000    

The interesting key here is that the real estate market conditions are so similar to 1996 when I wrote the article. I would say the exact same thing to a seller today. Many buyers are echoing the sentiment they expressed in 1996.
 
 
Excerpts from the 1996 Article:
 
The Coconut Grove Market is Alive and Well as long as homes are priced competitively! We find that this is true in all other Dade areas as well. This is a PRICE DRIVEN MARKET and buyers today shop. They will ignore the overpriced listing like the plague! Even when the property is one of our UNIQUE FABULOUS GROVE CHARACTER HOMES, if they feel the price is too high, the first question that they ask is, "How long has the property been on the market?" If they believe that the price is higher than competitive properties that have the same or similar character features in the nearby neighborhood, they wait for the seller to be "reasonable." I recently sold a home to the first buyer that I showed it to -- six months later and for twenty percent less than the first listing price.

North Grove Pool Home:  

1997 sold for $171,000
2007 sold for $630,000

 

 

 

 

 

Both North and South Grove homes are selling quickly if well priced. There are tremendous selections in the Gables and County and the taxes are less. In a price sensitive market where the days of "play money" and "quick profits" are gone buyers sharpen their pencil. All buyers today face higher insurance premiums which dramatically affect their monthly payments. Every nickel counts! Most important the homes must be in superb condition! Busy professionals in this market do not want to be bothered with repairs and remodeling. "Handy man Specials" are still in demand, but at drastically reduced prices. Permits and zoning are much stricter and good workmen are harder to find!  

 

South Grove Mediterranean Estate:  

Sold 1996 for $675,000
Sold 2000 for $825,000
Sold 2006 for $1,995,000

I believe that we live on our Biscayne Bay with our marvelous trees in one of the best parts of the world. BUYERS STILL WANT TO LIVE HERE TOO! In the last month we have sold to buyers from the Far East, Europe, Latin America, Kansas, and next door!
 

Excerpts from the Coconut Grove Times 1996


 

 

 

 


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