In our last blog we discussed what $1 Million or less could purchase you in the Coral Gables Single Family Home market based on the sales for the 2017 Quarter 1 period. To review that data and familiarize yourself with that portion of the Coral Gables market click here.
Today, we will be taking a similar look at what $1 Million or less can purchase you in the Coconut Grove Single Family Home market.
To achieve this, we have gathered all sales up to $1 Million for 2017 Quarter 1 (1/1/2017 thru 3/31/2017) as reported by the Miami Association of Realtors – Multiple Listings Service (MLS). In total, there were 27 reported closed sales for this time period. The figure below illustrates a breakdown of these statistics by breaking up the 27 total sales into four different price ranges: $400,00 or less, $400,000 to $600,000, $600,000 to $800,000, and finally $800,000 to $1,000,000.
The illustrations below provide a visual aid to better compare the key market indicators analyzed in the table above. These market indicators will prove useful to anyone considering to purchase in Coconut Grove in these examined price ranges. Lets take a closer look at each by reviewing the data in the following graphs.
Total Homes Sold
As illustrated above, the breakdown of the 27 Single Family Homes sold within Quarter 1 of 2017 were 3, 7, 8, and 9 for each respective price range. In comparison to the activity last examined in Coral Gables which had almost three times as many homes sold within the same time period, it is clear that there is limited supply in these price ranges in Coconut Grove.
Average Home Size (SF)
The graph above shows the breakdown of average home size in square feet for each respective category. These were 1,485 SF, 1,756 SF, 1,489 SF, and 2,040 SF for each respective category. Unlike the averages for the Coral Gables Single Family Homes which showed an almost perfect linear correlation between price range and average home size, these homes in Coconut Grove do not show that same pattern. From beginning to end there is an increase but in the middle categories there is some fluctuation.
Average Lot Size (SF)
The graph above illustrates the average lot size in square feet for each of the price range categories. Unlike the previous graph which contains a more fluctuated data trend, this graph does show a smoother positive sloping data trend .The trend does decrease in growth between the final two price ranges. On average, these Single Family Homes purchased within Quarter 1 of 2017 had 5,547 SF, 6,741 SF, 8,037 SF, and 8,198 SF lots for each respective category. This gives a useful insight to home buyers considering the $1 Million and under price fold in Coconut Grove as it lets them know that they will most likely be able to purchase a home with a 5,000 SF – 8,000 SF lot.
The graph above illustrates the average Price per Square Foot (home size) for each of the four price range categories. The graph displays a general upward trend as expected with a slight dip toward the final two price range categories. The lower pricing of the first two categories can be attributed to the fact that these homes at the lower end of the spectrum will generally be older and need more extensive rehabbing than the properties towards the upper end of the spectrum. An interesting distinction between the data for Coconut Grove in this blog and the data for Coral Gables in the previous blog is that Coconut Grove is more affordable (Price/SF) for the lower two price categories and more expensive (Price/SF) for the upper two categories.
The graph above shows the average discount from the original listing price at which the examined Single Family Homes sold. For three out of the four categories, this figure was very close to 3%. This means that for each $100,000 or the original asking price, home buyers were able to successfully negotiate and reduce around $3,000 off of their final purchase price. The $400,000 – $600,000 displays an average discount of 7.44% which is more than double from the other categories. This anomaly is attributed to the fact that two out of the seven homes in this category sold for 82% and 85% of their original asking price which increased the average discount well above the other three categories.
Average Property Taxes
Lastly, the graph above shows the average annual property taxes for each of the four respective price range categories. Except for the initial category of $400,000 or less, there is an almost linear upward correlation between the home purchase price and the average annual property taxes. These averages were $7,552, $6,231, $7,701, and $9,581 respectively. The higher than normal average for the first group which stands out from the general trend may be due to the fact that the homes which sold in this category didn’t have the any tax exemptions or had recently been bought and sold thus reassessing the tax rates to more recent (and higher) values.
One important consideration for any prospective home buyer to keep in mind is the fact that upon purchasing any property, their assessed property value for tax purposes will automatically be recalculated based on the most recent market activity. If the previous home owner had a Primary Homestead Exemption or any other tax exemptions for which the new buyer does not qualify, then the new buyer’s annual taxes will be higher.
Now that you are equipped with a solid understanding of the numbers for previous Single Family Home sales in Coconut Grove for 2017 Quarter 1 up to the $1 Million fold, lets see what the active inventory looks like.
If you are considering to purchase, sell, or rent in Coconut Grove please contact us today! Our team of highly experienced and qualified agents have an acute understanding of the Miami real estate market and are equipped with all of the tools necessary to help you meet your personal residential housing needs. Don’t delay, contact us today and let us help you make your dreams a reality!
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