2011 Coral Gables Real Estate Recap: Condominiums

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!

Best regards,

Joshua

2011 Coral Gables Real Estate Recap: Single-Family Homes

Greetings Relentless Reader and Happy New Year!

I hope everyone enjoyed a fantastic holiday season with friends, family… and even family who you wouldn’t even want as friends!

Well let’s get right to it with our…
“First Annual Coral Gables Real Estate Market Yearly Annual Update of the Year for 2011 Anno Domini”…  got to work on that title.  But here goes…

In 2011 Coral Gables continued to feel the effects of the overall slump in the real estate market on a local and national level.  However, there were many encouraging signs to 2012 being a much better year than the past few.  The average sales price and sales price / sq. ft. saw increases for the first time in 5 years.  And while the number of short sales rose, reflecting a national trend, the number of foreclosures declined for the second year in a row.

Overall this points to a solid stabilization in the single-family market after the last few years of declines.  If you are looking to purchase a home in Coral Gables this data means that now is the time; prices will not get much lower and within the next 2-3 years will begin to climb again as distressed properties are sold off and the current harsh lending guidelines are relaxed.  Add to that the historically low interest rates (reported by BankRate.com as 4.21% at the time of this post) and it looks like now is the perfect opportunity to buy a Single-Family home in Coral Gables.  The chances of your home’s value dropping in 2012 are very low and there is a slim chance that if you make a smart purchase you will actually see an increase in your home’s value.  Call me to find out how to make a smart purchase.

Take a look at some of the numbers to get an idea of how 2011 was a year of stabilization in the Coral Gables Single Family Home market…

You can tell I know the Coral Gables Market because I make sweet graphs!  Tomorrow… the Coral Gables Condo Market (collective sigh)

Best regards,

Joshua

November 2011 Coral Gables Real Estate Market Update: Quality over Quantity

Hello Valued (and intelligent) Reader,

It’s that time of the month again…normally that statement can be cause for trepidation and fear but in this instance it just means that it’s time for the Coral Gables Market Update.

This month we have some mixed results, on the bad side we had 10 fewer closings in November 2011 than in October 2011 (Oct.’11=35 and Nov’11=25).  This doesn’t seem to bad because of course November is turkey time and people are generally much more interested in family time that closing time.  But wait there’s more bad news, in comparison with the 32 Closed Sales in November of 2010 we are at a big drop in 2011 with only the 25 closed sales. Maybe the turkey was better this year?

But wait there is a twist!  This year, November 2011 the average sale price was $1,305,220 which is an increase of approximately $200,000 from last years’ November 2010 average of $1,051,528.  So prices are going higher and there are less sales as a result.  This is a good trend for the market, it shows that many of the lower priced distressed sales are starting to slip into the past.

Just to check my hunch on the numbers a little further I decided to check the number of distressed sales for the two periods.  Sure enough there was a large drop in the number of distressed sales this year as opposed to last, which would explain the drop in number of sales but the increase of average sales price.

Here is a graph because graphs are sweet, especially 3D graphs, please put your 3D glasses on now…

Comparison of Distressed Sales

Thank you for reading,

Joshua T. Reich

 

 

Published in: on December 5, 2011 at 8:16 pm  Leave a Comment  
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