Coral Gables, an increasingly attractive locale in South Florida, continues to captivate potential buyers with its prime location and assorted amenities that enrich the living experience.
Real estate agent Frank DeValdivielso from Keyes Co. highlighted the city’s strategic position as a major draw for new homeowners, stating, “The reason people buy in Coral Gables is the location is very centric to all of Miami.
It’s a quick ride to Brickell. It’s a quick ride to the airport. It’s a quick ride to your office, if you’re lucky enough to have an office in Coral Gables. So it’s very centric; the location is huge.
Additionally, Coral Gables hosts a plethora of cultural events, making it vibrant and exciting, featuring everything from theaters to an eclectic restaurant scene.
Despite these attractions, the market faces a significant challenge—an oversupply of properties and longer selling periods.
DeValdivielso noted, “There’s more inventory than there are buyers, and properties seem to be taking longer to sell than in the past.”
He speculated that this discrepancy is due to soaring expectations from homeowners regarding their asking prices, alongside buyer reluctance to pay those expected profits.
The influx of companies relocating to South Florida has spurred an increase in population.
According to DeValdivielso, “I equate the origin of the buyers to the companies that are moving down here, such as Amazons and various fund management firms.
As these organizations set up in the region, they bring along their support staff, including lawyers and finance experts, further enriching the community and increasing demand for residential options.”
As of now, the median asking price for active sales in Coral Gables stands at $1.5 million, marking a distinct yet challenging market environment.
Amid these complexities, other real estate professionals foresee potential price increases in the coming months.
Manuel Chamizo, commercial director for ONE Sotheby’s International Realty, believes the area’s well-managed housing market will continue to thrive.
“I think that Coral Gables is a bubble within a bubble, because we are so well managed and we’re so well positioned for the future,” Chamizo asserted.
He emphasized that residents from Latin America feel at home, noting, “Money doesn’t need to speak English in Coral Gables.
Whether you’re coming from Chile, Venezuela, Ecuador, or Mexico, you can live comfortably speaking Spanish, which only fuels our population growth.”
DeValdivielso emphasized the reality of the interest rate environment, pointing out that we are experiencing what he considers a new normal, with current rates hovering around 6%.
For the majority of the past 50 years, the rates have aligned with this level.
During the COVID-19 pandemic, interest rates dipped to historic lows of 2% or 3%, creating a short-lived surge in buyer demand, which in turn drove up property prices.
DeValdivielso observed, “Now at 6%, which is normal, buyer behavior is shifting; they’re beginning to accept this rate as part of their reality.
I expect more buyers to make purchasing decisions as we move into the fourth quarter of the year.
I expect a strong fourth quarter of sales.”
Though there are some projects underway, particularly in the condominium and single-family home sectors, the volume of new constructions has markedly decreased compared to prior years.
“Resale homes are the main drivers of the current market,” DeValdivielso noted.
Many homeowners are renovating their properties before putting them back on the market, resulting in a shift in the types of sales seen today.
He expressed belief that prospective buyers who remain on the sidelines waiting for interest rates to decrease may risk missing out on desirable inventory.
“We have sufficient inventory to meet the demand,” he concluded, stressing that those who delay their decisions may find themselves at a disadvantage in this lively market.
image source from：miamitodaynews
