2012 North Coral Gables Condo Market Report
This is a North Coral Gables condo market report for the 2012 calendar year.
All real estate is local. While this market report is specific to condos in North Coral Gables, there are neighboring communities in Central and South Coral Gables with different levels of inventory and market characteristics.
Feel free to contact me if you’re interested in learning more about the market characteristics in Central and South Coral Gables.
2012 Was a Strong Year for North Coral Gables Real Estate
Much like the single-family homes market (which I covered last week), North Coral Gables had the lowest number of condos available for sale since we began following local real estate market trends in 2009.
There were approximately 60 condos available for sale in North Coral Gables on the last day of 2012. That’s close to a 40% drop in inventory from a year before when 99 condos were available for sale at the end of 2011.
Low inventory fueled by increased demand causes prices to rise…and that’s exactly what happened in the North Coral Gables condo market in 2012. The median sales price was 15.5% higher in 2012 ($254,000) than it was in 2011 ($220,000).
Thirty-four (34) condos sold above asking price in 2012. Another sixteen (16) condos sold at full asking price.
Demand was strong in 2012 as evidenced by the number of condos that went under contract (227) and the lowest average days on market (112) in the last 4 years.
Historically low mortgage interest rates continue to make buying a condo more affordable than renting one in some cases. Low mortgage interest rates also increase purchasing power for real estate buyers.
A condo listed at $500,000 when interest rates were 2 points higher costs buyers 20% less today. The monthly mortgage payment on that $500,000 condo today is the same as the buyer who paid $400,000 for a condo when interest rates were 2 points higher.
Buyers and sellers in Coral Gables, take note. Mortgage rates this low won’t last forever. The Mortgage Bankers Association expects mortgage interest rates to remain below 4% through the first half of 2013. As rates gradually increase, the 30-year fixed mortgage may reach 4.4% by year’s end.
If you’re thinking about buying or selling your Coral Gables condo, take advantage of these low mortgage interest rates.
North Coral Gables Condos Sold in 2012
Condo sales were up 21.6% in 2012, showing increasing demand and a much-improved market.
2012 sales ranged from a “cozy studio” (code word for “smaller than your closet”) at Mendoza Condo located at 124 Mendoza Ave #8A that sold for $40,000 ($157/SF) to a 3,005 square foot townhouse-style unit with 4 bedrooms and 4 1/2 baths in Gardens on Valencia located at 530 Valencia Ave #2 that sold for $850,000 ($283/SF) in January and resold in November for $1,100,000 ($366/SF).
Overall, the North Coral Gables condo market is in an extreme seller’s market with 2.98 months of inventory. On average, home prices are showing moderate to high appreciation.
One Hundred Forty Five (145) of the 242 condos sold in 2012 were purchased as all-cash transactions. Ninety-one (91) of the condos were purchased with conventional loans. One condo was financed with a FHA loan and 5 others were categorized as “Other” in the MLS.
Of the condos sold in North Coral Gables in 2012, the average amount of days they had been on the market was 112. That was 12.5% fewer days than 2011 and 34.5% fewer days than 2009.
The line graph below illustrates the average days on market for condos currently available for sale in North Coral Gables.
Sold-to-List Price Differential
The sold-to-list price differential, also known as the sale-to-list ratio, is the final sales price (what a buyer pays for the home) divided by the list price (at the time of sale) expressed as a percentage.
The average sold-to-list price differential for condos in North Coral Gables in 2012 was 94.5%.
When using this information, it is important to note that the data above is derived from an aggregation of many condos and an individual sale may not have the same behavior as all the condos put together.
All real estate is local. Don’t make important decisions like selling your Coral Gables condo without knowing your numbers.
Find out how much your condo is worth. Call me today at 305-491-7179 or send me a note to firstname.lastname@example.org. I will be more than glad to offer advice and guidance on current market conditions.