The Real Estate Fountain

A steady supply of buyers is supporting the real estate market in the Golden Triangle neighborhood of Coral Gables, near the Biltmore Hotel.  Recent sales illustrate the reasonably firm demand for older homes with character.

The home at 3408 Toledo Street sold for an even $900,000, or about $273 per square foot.  The previous sale was in 1993 for $388,000, so the recent sale represents about 4.9% annual appreciation over the last 17 years.  That’s pretty normal, not any kind of fire sale, especially considering that the house could use some updating.

3408 Toledo St.

The home at 923 Escobar Avenue sold for $930,000.  The previous sale was in 2007 for $769,500.  According to the sales pitch, a whole lot of money was spent on improvements, so the seller did not exactly perform a miracle by making a big profit in a down market.  But at $347 per square foot, the buyer paid a handsome price.

923 Escobar Ave.

Two other homes in the Golden Triangle area of Coral Gables were listed recently and quickly disappeared from the market.  You can assume they are under contract.

The property at 1115 Anastasia Avenue, across from the entrance to the Gables Stage theater at the Biltmore Hotel complex, was advertised for just under $1 million.  It has 5 bedrooms and 3 baths, if you count the little maid’s quarters by the garage.  Lots of character inside, but lots of termite damage too.  The seller reportedly got a cash offer reasonably close to full price, from a buyer with peculiar reasons for wanting to be as close to the Biltmore as possible.

Another sale that seems to be in the works is at 3717 Toledo Street.  For this run-down, older house with character, the sellers were reportedly seeking at least $850,000.  Interest seemed strong, and they probably got at least that much, despite the need for a couple hundred thousand dollars’ worth of renovations.

3717 Toledo St.

Granted, these old Coral Gables homes probably would have sold for more a few years ago at the height of the real estate bubble.  But today’s buyers are hardly getting bargains.  These are not elite luxury homes.  Residents in the area are typically white-collar workers and retirees, not international jet-setters.  Paying $900,000 for a home implies about $90,000 a year in ownership costs — maybe $80,000 at today’s low mortgage rates.  Not cheap.