This is a 2016 Real Estate Market Update for single-family homes in the 33134 zip code of Coral Gables.
It's a Buyer's Market, folks. That's the new reality. There are 6.24 months of supply in the 33134 zip code of Coral Gables.
Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. Generally-speaking, buyers have more negotiating leverage than sellers in a Buyer's Market.
The good news for sellers is that prices are still up despite a decrease in demand and an increase in the supply of homes available for sale in the year-over-year analysis.
The 128 active listings at the end of December 2016 represented a 10.3% increase over the end of December 2015. Buyers today have more homes to choose from than they did a year ago.
Single-Family Home Sales
The Southeast Florida Multiple Listing Service (MLS) and CoreLogic Realist® report that at the end of December 2016 a total of 275 single-family homes sold in the 33134 zip code of Coral Gables. This represents a 1.8% decrease over sales at the end of December 2015 and the lowest number of home sales in a calendar year since 2012.
Prices for single-family homes in the 33134 zip code of Coral Gables have continued to climb. The median price of a single-family home increased 7.9% from the end of December 2015 to $705,000 at the end of December 2016. Average single-family home prices rose 4.4% to $849,888.
Meanwhile, the dollar volume of sales increased 2.6%. In total, $233,719,300 worth of single-family homes sold in 2016.
Absorption Rates and Days on Market
The graphs above demonstrate how the market for single-family homes in the 33134 zip code of Coral Gables was a tale of two halves in 2016.
The Southeast Florida Multiple Listing Service (MLS) and CoreLogic Realist® report that 123 single-family homes sold the last 6 months of 2016 in the 33134 zip code of Coral Gables. This represents a 19% decrease over sales in the first 6 months of the calendar year when 152 single-family homes sold and the lowest number of homes sold in the second half of a calendar year since 2011.
Entry-level homes under $600,000 were in high demand during the first 6 months of the year. As a matter of fact, 41% of all homes sold in the 33134 zip code of Coral Gables during those first 6 months sold for $600,000 or less. That number dwindled to 28% for the last 6 months of the year.
Homes in the $500s, historically the "bread and butter" of the local market, experienced the greatest change in demand. While it represented the largest segment of the market with 30 single-family homes sold in the first half of the year, this price segment experienced a 53% decrease in demand with only 14 single-family homes sold in the second half of the year.
Entry-level homes affect the chain of demand. All other segments benefit when this level of the market performs well, as it releases those sellers into the move-up and luxury markets. When it stagnates, it typically creates a bottleneck in the higher price segments.
Having said that, homes between $600,000 and $800,000 fared best as they accounted for almost 31% of all home sales in the second half with an average absorption rate of 4.6 months, while most price segments above $1.25M are considered Extreme Buyer's Markets at this time.
Homes sold in 2016 spent an average of 123 days on the market, which is 31% longer than homes sold in 2015.
Tips For Buyers
If you're in the market to buy a single-family home in Coral Gables (or any other area for that matter), it's important to know and understand the hyper-local market statistics for the type of home you're interested in.
An agent (or a team of agents) who specializes in your area of interest can gather and help you break down the information you need to gain insight on a particular area.
Knowing what type of market you're in allows you to develop an effective negotiation strategy that leads to results. Should you offer 10% less than the list price or 5% above asking price? Should you request that the seller pay for all of your closing costs, a portion, or none at all? Should you offer to close in 60 days or 30?
Working with an experienced agent that can help you navigate these sometimes treacherous waters can mean the difference between securing your dream home or insulting and alienating a seller with a "lowball" offer.
Tips For Sellers
When the supply of homes available for sale swells and your competition for buyers increases, it's important that you do ALL of the things necessary to get the highest price possible in the shortest amount of time with the least amount of worry and inconvenience:
2. Price your home correctly from the get go.
Executing these 4 steps with the help of an experienced team of marketers and agents results in a very successful home selling experience.
Ready to move up or out, but not sure if it's the right time to buy or sell?
Contact us today. We can help you design a viable plan for selling and moving within your desired time frame.
Before you go...
Top tips to sell your home for the most money in the least amount of time.
Overpricing a home to "test the market" is one of the biggest mistakes any seller can make. Here's how to avoid that.
Exposure, exposure, exposure in the right places presented in the right way. That's how you sell for top dollar.