Greetings Famous Reader!
Well the numbers are in now for the 2011 Condominium Recap in Coral Gables. Yes I know in the last post I said they would be in tomorrow and that was last Wednesday, well the good news (to offset this post) is that the market is really taking off since the beginning of the year. My phone has been ringing off the hook (which is even more impressive because it does not have a hook) which has left me little time to dabble in the numbers. But fret not I have dug deep like Dig Dug and now it’s on like Donkey Kong! I tried to think of one more video game from the 80′s but then I realized I might be annoying you.
So back to the action, the condo market is…well…let’s just say it is not showing the same signs of leveling out as the single-family market. Whereas the average price of a single family home actually increased slightly in 2011 the average price of a condominium continued to fall. Despite an anomalous jump in Average Sales Price from ’09 to ’10 the Average Price/Sf. from the same period dropped and continued to do so in 2011.
The distressed portion of the condominium market mirrored the single-family market in that Short Sales overtook Foreclosures in 2011 and both continued to rise dramatically.
I predict a continued downward pressure on condominium prices in 2012 brought on by the continual stress of distressed properties. This is compounded by the fact that because condominium associations cannot collect adequate fees from delinquent owners they are often forced to raise maintenance fees for those that do pay which is a scary proposition for potential buyers.
What does this mean for you? Well if you are looking to by a condo in Coral Gables in 2011 you might want to hold off a bit as prices will continue to fall, and if you are looking to sell a condo in Coral Gables you may want to sell now before the price drops more in 2012.
Of course the major caveat to this is that with condominiums each building is different, some are highly sought after and will have either stabilizing prices or even in some elite condos there will already be price increases. The important thing is to do your research, or to have someone that really knows the market do it for you… I’m just saying. So here are some graphs that show you what I have been blabbering about. Since most of you have stopped reading by now for anyone that is still reading I will give you a prize like Oprah does… send me some random data and I will turn it into a sweet graph, nothing vulgar please! And we will share it on The Coral Gables Blog in the future!
Ok enough words, now for graphs!
Thanks for reading and have a great 2012!
Joshua T. Reich, P.A., Realtor
Knowledge, Professionalism and Diligence Since 2004
REOS – Real Estate Owned Specialist
TRC – Transnational Referral Certification
Broker-AssociateRE/MAX Advance Realty
7220 Red Rd
Miami, FL 33143
Miami Website: www.GreatHomesinMiami.com
Coral Gables Website: www.GreatCoralGablesHomes.com
Coral Gables Blog: www.TheCoralGablesBlog.com