Last week we took a look at the recent activity in the Pinecrest market for Single Family Homes above the $3 Million fold. For a complete breakdown of that market review click here.
Today we will be taking a look at what $1 Million or less can buy you in today’s Single Family Home market in Coral Gables, affectionately known by its residents as “The City Beautiful” .
To achieve this, we looked at all sales up to $1 Million for 2017 Quarter 1 (1/1/2017 – 3/31/2017) as reported by the Miami Association of Realtors – Multiple Listings Service (MLS). In total, there were 74 reported closed sales for this time period. The figure below illustrates a breakdown of these statistics by breaking up the 74 total sales into four different price ranges: $400,000 or less, $400,000 to $600,000, $600,000 to $800,000, and finally $800,000 to $1,000,000.
Upon closer review of the data, we noticed some interesting correlations between the sales price ranges and the key market indicators outlined in the above illustration. These market indicators will prove useful to anyone considering to purchase in Coral Gables in these examined price range. Lets take a closer look at each by reviewing the data in following graphs.
Total Homes Sold
As illustrated above, the breakdown for the 74 Single Family Homes sold within Quarter 1 of 2017 were 11, 15, 29, and 19 for each respective price range. In comparison to other highly desirable neighborhoods such as Pinecrest and Coconut Grove which have very limited inventory below the $1 Million fold, this is sure to be welcome news for many active home buyers.
Average Home Size (SF)
The graph above shows an interesting trend. As noted, the average home size in square feet is 1,386 SF for properties sold under $400K, 1,746 SF for properties sold between $400K – $600K, 2,043 SF for properties sold between $600K – $800K, and 2,497 SF for properties sold between $800K – $1 Million. If we trace a line from the peak of each price range we obtain an almost straight line. This demonstrates that there is almost a direct relationship between the price paid for the property and the corresponding square footage of the living area. Using this graph as a tool, a home buyer can accurately guesstimate how large their home will be depending on their desired budget.
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 shows a cleaner data trend, this graph also shows a general upward trend but has very similar values for the first two price ranges. On average, these Single Family Homes purchased within Quarter 1 of 2017 had 6,735 SF, 6,635 SF, 7,754 SF, and 9,421 SF lots for each respective price range. Home buyers in these price ranges can realistically expect to afford between a 6,000 SF and 10,000 SF lot in Coral Gables up to the $1 Million fold.
The graph above illustrates the average Price per Square Foot for each of the four price range categories. Similar to the previous to graphs, we can see a general upward trend indicating that the higher the purchase price, the higher the actual price per square foot. Now, if you review the actual properties in each respective category this will make perfect sense. Progressively speaking, generally the higher the purchase price, the better physical condition the home will be in thus being worth a higher cost. As indicated above, these averages were $249.65, $302.72, $355.33, and $365.49 for each respective price range group.
The graph above shows the average discount from the original listing price at which the examined Single Family Homes sold. For each of the three categories ranging from $400K up to the $1 Million fold, the average discount was between 4.20% – 4.52%. This means that for each $100,000 of the original asking price, home buyers were able to successfully negotiate and reduce around $4,000 off of their final purchase price. Interestingly, for the lowest price category of homes sold under $400K, the average discount was only 2.80%. This means that home buyers in this category had very little room for negotiation. At this lowest price range, competition is fierce and buyers are willing to pay up to and sometimes even above the full asking price to ensure they have strong chance of getting the seller to accept their offer above the competitions.
Average Property Taxes
Lastly, the graph above shows the average annual property taxes for each of the four respective price categories. Again we see the almost linear upward correlation between the home purchase price and the average annual property taxes. These averages were $3,313.09, $5,625.40, $7,786.38, and $9,503.84 respectively. Among other considerations, one must note that property taxes for a new home buyer will not be the same as the previous owner. Upon purchasing any property, the assessed property value is automatically recalculated. If the previous home buyer 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 Coral Gables 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 Coral Gables please contact us today! Our team of highly experienced and qualified agents have an acute understand 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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