Coral Gables Real Estate and the White-Collar Blues

posted on November 18th, 2010 filed under: Financial Responsibility, Real Estate Market Data

It can be hard for working professionals to find a nice home at a decent price in Coral Gables.  Seriously.  Even here, in boom-and-bust South Florida.  And even now, well into one of the worst real estate downturns of all time.

If you’re a hard-working professional making a couple hundred thousand dollars a year, you ought to be able to buy a handsome home by levering that income three to four times, as the old conservative banker’s formula would permit.

Unfortunately, that puts you in a price range — say, $750,000 and up — where sellers remain stubborn about lowering prices.  In recent market activity, sellers in the $500k to $750k price range were nearly twice as likely to reduce their prices as sellers in the $750k to $1 million price range.

Percentage of Listings Reduced in Price -- Area 41 (Incl. Coral Gables) -- Nov. 2010

Someone buying a in the $750k to $1 million price range is probably not much more wealthy than someone buying in the $500k to $750k price range.  Yet sellers’ behavior appears to be much more demanding.

Maybe that’s why there’s such an unusually dramatic inverse correlation between price ranges and sales activity, as noted previously.

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posted by // This entry was posted on Thursday, November 18th, 2010 at 12:32 am and is filed under Financial Responsibility, Real Estate Market Data. You can follow any responses to this entry through the RSS 2.0 feed.

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