As a Coral Gables Realtor for over 10 years, I have seen the ups and downs in the Coral Gables real estate market. For example, the 2004-2007 real estate boom where everyone was making a killing because the house they just bought was worth 10% more just 3 months later. Every developer was building like money wasn’t an issue.
Then came 2008, when the “bubble” burst! We all know what happened here. After in 2010, when the bottom of the market was here, homes in Coral Gables were selling at $200 a sqft. This was obviously the “buyer’s market.”
This was a great time to buy a new home or, what this blog is about, upgrade to a bigger home. Many homeowners that needed a bigger home and had the 10,000, 15,000, 20,000 sqft or larger lots didn’t feel that it was cost effective to expand even though they had more than enough room to expand.
Why was this?
Quite frankly it was just cheaper to buy an new home than to build. Not only cheaper, also less of a headache! Dealing with the City of Coral Gables is a pain and if you have dealt with them, then you know what I’m talking about. So, where am I heading at?
These are just a few homes of many that are currently under construction in Coral Gables. Prices in Coral Gables are no longer at $200 a sqft. (Well, if you know of any, please contact me immediately because you have a buyer right here.) Now it seems like a better idea to build on to your current home because it has become cheaper to build compared to buying.
Let’s say you bought a 2,000 sqft home with 3 bedrooms and 2 bathrooms on a 15,000 sqft lot in Coral Gables in the year 2000. More or less you probably paid $350,000-400,000 give or take depending on the particular location in Coral Gables. At this time, you need an extra bedroom and bathroom which will add another 1,000 sqft.
The going rate for new construction is roughly $150-200 a sqft and again depending on your finishes. So at a $200 a sqft rate at 1,000 added sqft places your cost at roughly $200,000. Now your home is 3,000 sqft. Now, how much is this house worth today? Definitely over $1,000.000.
It has just become cheaper to build than buy.
I’m just amazed by the amount of new homes that I have been seeing on a day to day basis when just about 1 year ago, it was the complete opposite. Also, lets not fail to mention how this benefits:
…….And many more.
I always receive calls from developer clients of mine asking for advise on what’s hot and what not. From the latest kitchen countertops, floors, appliances, etc. Please do not hesitate to contact me for any questions you may have and I will be more than happy to assist you.