Miami Beach Real Estate Blog

I’m often asked by both buyers and sellers interested in purchasing or selling a waterfront (and non-waterfront) single family home on Miami Beach if we’ve reached a housing market bottom?  The answer for PRIME waterfront properties located on island communities such as Palm, Star, Hibiscus, Sunset Islands I – IV, and the various Venetian Island communities is that homes that are priced according to latest closed sales comparables are selling quickly.  As inventory continues to be absorbed, we are seeing price stabilization (especially for remodeled and turnkey homes and condos).

Waterfront condos, especially premier waterfront and oceanfront buildings such as Continuum North and South Towers, Apogee, The Portofino, The Murano at Portofino, Murano Grande, Icon, and even The Bentley Bay on West Avenue are also seeing significant sales taking place in the past several months AT REDUCED PRICES.  For South Beach landmark luxury buildings completed after 2001, if the price is right, we are seeing plenty of buyers willing to make reasonable offers.  Therefore, if you’re a seller that needs to sell, my advice is the same- work with an experienced and knowledgeable sales agent/broker that will price your property realistically and then market as agressively as possible.

In Miami-Dade County, pending home sales decreased by 2.21 percent in December compared to the previous month, from 8,288 to 8,105 according to the Realtor Association of Greater Miami and the Beaches (RAMB) and Southeast Florida Multiple Listing Service.  This slight decrease can be attributed to the holiday season, which traditionally results in fewer home sales.  Since March 2009, when our local real estate board began tracking local pending sales, pending home sales have increased 43 percent as buyers have taken advantage of record-setting affordability conditions, the first-time home buyer tax credit, and a wide selection of properties to choose from.  Closed sales have increased each of the last 16 months, a clear sign of the strengthening market and indicative of stabilization.

Pending sales of condominiums in Miami-Dade County also experienced a negligible decrease in December, dropping half of a percent from 4,414 to 4,394.  Pending sales of single-family homes dropped 4.21 percent in December from the previous month, from 3,874 to 3,711.

We believe that the Miami Beach real estate market has experienced a dramatic recovery over the last year and a half, posting record closed and pending sales increases coupled with strong declines in housing inventory.  Market opportunities resulting from record affordability, low interest rates, and a second wave of short sales and foreclosures will also fuel increased sales this year.  Additionally the always-strong international buyer market segment will remain a major force in the South Florida marketplace.

An illustrative example of a recent Miami Beach (Palm Island) Closed Sale:

Palm Island Home

This was the best opportunity on the Miami Beach market to purchase a home on a guard-gated island community. Surrounded by lush landscaping, this two-story residence is located on prestigious Palm Island, just minutes from downtown Miami, South Beach and world-renowned Ocean Drive. Features include high ceilings, 4 upstairs bedrooms, and an air-conditioned 2-car garage. Pristine conditions.

My opinion as to why it sold in just 66 days on market:  Amazing island community location, spacious floorplan and updated home, price reduced to sell.

Sold Price: $890,000
Original “For Sale” Price : $1,495,000 (3/2007)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,786 ($319/SF)
Land S.F.: 6,000 ($148/SF)
Sold Date: December, 2009
Discount from Original Asking Price: 40%