Have prices hit bottom?
There has been a dramatic drop in prices in Coral Gables. An analysis of closed sales so far this year reveals that the average sale price per square foot is $273 while the median is $255. For the same period last year (January to September) those numbers were $312 and $294 respectively.
What is the average price of a home?
The average sale price of a Coral Gables home this year is $888,250 (median sale price is $547,500). The average sale price in 2008 was $951,314 and $1,235,236 in 2007!
What is selling?
Of the 208 homes sold so far in 2009 (221 for the same period last year), only 40 sold for over $1 Million, making this the slowest segment. The up to $500K and the $500K-$1 Million price ranges have seen equal activity with 84 closed sales each.
Is there room to negotiate?
On average, buyers are paying 90.8% of the listing price; but keep in mind this number factors in all overpriced, underpriced and well priced homes. Well priced homes are getting something closer to 95% of the asking price on average.
What should we expect in the months to come?
Even though the level of activity is virtually the same as last year’s, I have seen the months of inventory figure as well as the number of new listings hitting the market go down. I do not know if this downward pressure of supply will be enough to affect prices. The average sales price per square foot, which I calculate by averaging out three months to account for outliers, is still going down. It was $287 in July, $276 in August and $268 in September.
Conlusion: It is ALREADY a great time to buy in Coral Gables.
Want to receive my posts directly to your inbox? Click here to subscribe to The Key Insider.
Looking to buy or sell a property in Coral Gables? Please contact me at 786-301-1054 or send me a note here.