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%
Recently, there has been flurry of articles in the newsmedia about a pronounced increase in home sales, which has also led to a stock market rally in the runup to the Thanksgiving Holiday. I’d like to take this opportunity to put a bit of local perspective on this latest sales trend:
75% of the homes sold between August through October in Miami-Dade County were priced under $300,000 and 23% of these sales were for homes listed under $100,000.
Price trends at the lower end of the market have been positive, however moving into the higher price ranges, those are areas that we are still seeing weakness. Typically, when the supply of homes for sale stands at a year or more, prices tend to fall. With a six- to nine-month supply, prices remain flat. When the supply drops below six months, sales activity begins to spur price appreciation, as it has for recent home sold and priced under $100,000
Below is sampling of the supply of houses listed for sale in Miami-Dade in October, according to the MLS:
• Under $100,000: four-month supply
• Under $300,000: eight-month supply
• $300,000 to $1 million: 21-month supply
• Over $1 million: four-year supply
Miami Beach’s luxury housing market falls into the upper end category, however, the supply is much more restricted due to the natural barrier (island community) limiting further supply. Also, virtually no new construction is currently taking place, so we’re experiencing a decline in inventory levels for Miami Beach’s 33139 and 33140 zip codes:
$300,000 to $500,000: less than six month supply
$500,000 to $1 million: 14 month supply
$1 million to $2 million: 18 month supply
Over $2 million: 23 month supply
The conclusion from the above referenced data – there is no room in the Miami Beach housing market for overpriced listings. The strongest demand is for turnkey (completely remodeled) homes, where the new owners do not have to make an additional investment into the property.
* Data Sources: MLS & Miami-Dade Public Records
Recently, there has been flurry of articles in the newsmedia about a pronounced increase in home sales, which has also led to a stock market rally in the runup to the Thanksgiving Holiday. I’d like to take this opportunity to put a bit of local perspective on this latest sales trend:
75% of the homes sold between August through October in Miami-Dade County were priced under $300,000 and 23% of these sales were for homes listed under $100,000.
Price trends at the lower end of the market have been positive, however moving into the higher price ranges, those are areas that we are still seeing weakness. Typically, when the supply of homes for sale stands at a year or more, prices tend to fall. With a six- to nine-month supply, prices remain flat. When the supply drops below six months, sales activity begins to spur price appreciation, as it has for recent home sold and priced under $100,000.
Below is sampling of the supply of houses listed for sale in Miami-Dade in October, according to the MLS:
Under $100,000: four-month supply
Under $300,000: eight-month supply
$300,000 to $1 million: 21-month supply
Over $1 million: four-year supply
Miami Beach’s luxury housing market falls into the upper end category, however, the supply is much more restricted due to the natural barrier (island community) limiting further supply. Also, virtually no new construction is currently taking place, so we’re experiencing a decline in inventory levels for Miami Beach’s 33139 and 33140 zip codes:
$300,000 to $500,000: less than six month supply
$500,000 to $1 million: 14 month supply
$1 million to $2 million: 18 month supply
Over $2 million: 23 month supply
The conclusion from the above referenced data – there is no room in the Miami Beach housing market for overpriced listings. The strongest demand is for turnkey (completely remodeled) homes, where the new owners do not have to make an additional investment into the property.
Miami Beach single family homes (especially waterfront luxury properties) are in limited supply, and with most major financial news pundits announcing a”housing bottom”, I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of this conclusion:
Venetian Island Turnkey Charm
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Venetian Islands waterfront home with stunning, direct, Downtown Miami unobstructed bay views. This 3,586 square foot home was renovated with 3 bedrooms, a great kitchen, media room and maid’s bedroom/bath. Facing west, with pool, boat dock and 60′ of waterfront.
Key “Market Bottom” indicators:
“For Sale” Price: $3,200,000 (20 days on the market at this reduced price point)
Original List Price : $4,200,000 (May, 2009)
Previous Price Reduction: $3,400,000 (June, 2009)
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,586
Land S.F.: 10,500
Asking Price per S.F.(Land): $304
Previous Sold Date: 2004 ($2,225,000)
Closed Price: $2,800,000 (August 11, 2009)
Discount from Latest Asking Price: 12.5%
Biscayne Island- Wide Bay Fixer Upper
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Opportunity to complete the remodeling of this Spectacular Waterfront residence located on the Miami side of the Venetian Island chain. The new owners will enjoy the Panoramic water views of a home located on a 15,000 lot.
Key “Market Bottom” indicators:
“For Sale” Price: $2,137,500 (5 days on the market at this reduced price point)
Original List Price : $6,7500,000 (February, 2007)
If you’re a potential seller of waterfront real estate in Miami Beach and cannot hold on to your property because of negative cash flow (probably if your housing expenses total more than 31% of your gross income), the smart approach is to price right. Working with a knowledgeable, honest, and experienced sales agent is the key here, and the price needs to be based on the last three to six months of closed sales. My team and I have experienced that Miami Beach waterfront properties- whether they are single family homes or condos which are priced RIGHT have multiple offers and sell quickly.
If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value). My advice is
Miami Beach single family homes (especially waterfront luxury properties) are in limited supply, and with most major financial news pundits announcing a “housing bottom”, I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of this conclusion.
Venetian Islands Turnkey Home:
Venetian Islands Home
Venetian Islands waterfront home with stunning, direct, Downtown Miami unobstructed bay views. This 3,586 square foot home was renovated with 3 bedrooms, a great kitchen, media room and maid’s bedroom/bath. Facing west, with pool, boat dock and 60′ of waterfront.
Key “Market Bottom” indicators:
“For Sale” Price: $3,200,000 (20 days on the market at this reduced price point)
Closed Price: $2,800,000 (August 11, 2009)
Original List Price : $4,200,000 (May, 2009)
Previous Price Reduction: $3,400,000 (June, 2009)
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,586
Land S.F.: 10,500
Asking Price per S.F.(Land): $304
Previous Sold Date: 2004 ($2,225,000)
Discount from Latest Asking Price: 12.5%
Biscayne Island Home – Wide Bay Fixer Upper:
Biscayne Island Home
Opportunity to complete the remodeling of this Spectacular Waterfront residence located on the Miami side of the Venetian Islands chain. The new owners will enjoy the Panoramic water views of a home located on a 15,000 lot.
Key “Market Bottom” indicators:
“For Sale” Price: $2,137,500 (5 days on the market at this reduced price point)
Closed Price: $2,030,000 (July 16, 2009)
Original List Price : $6,7500,000 (February, 2007)
Previous Price Reduction: $2,500,000 (March, 2009)
Bedrooms: 3
Bathrooms: 4
House S.F.: 4,010
Land S.F.: 15,000
Asking Price per S.F.(Land): $142
Previous Sold Date: 01/2007 ($5,350,000)
Discount from Latest Asking Price: 5%
If you’re a potential seller of waterfront real estate in Miami Beach and cannot hold on to your property because of negative cash flow (probably if your housing expenses total more than 31% of your gross income), the smart approach is to price right. Working with a knowledgeable, honest, and experienced sales agent is the key here, and the price needs to be based on the last three to six months of closed sales. My team and I have experienced that Miami Beach waterfront properties- whether they are single family homes or condos which are priced RIGHT have multiple offers and sell quickly.
If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value). My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years. There are many reasons why we can expect to see an initially FLAT and then GRADUAL price appreciation in Miami Beach real estate market for several years. Times have indeed changed, but the opportunity to purchase a discounted PRIME waterfront single family home or condo is now!
It’s been a busy month for myself and my team, as we’re seeing strong buyer activity from so-called “Bargain Hunters”. I’ve intentionally avoided weighing in on the technicalities of the financial crisis and the future impact of the Paulson Plan, as there are many more qualified sources out there to give readers their analysis. However, now that we are seeing some stability return to the banking sector, I’ve noticed a strong surge in buyers looking to purchase prime real estate properties at significant discounts. What’s happening are that the properties in the best locations are being picked up now at prices that range from approximately 30%-50% discounted values from 2005 prices.
Waterfront homes (turnkey) in Miami Beach at reasonable prices are in surprisingly short supply, and these are the first of the “bargains” that have been purchased recently. For example, I recently conducted a search for a client with a budget of $5 Million looking to purchase a luxury waterfront home (remodeled) on the Venetian, Palm Island, Hibiscus, Sunset Islands or Bay Drive in Miami Beach. The real choices? Just twelve waterfront homes!
Also, a few of our latest sales are indicative of the above referenced “deals” that are happening now:
Jade Beach- Prime Location Sale #1
Spectacular Lower Penthouse #4401 “F Line”- 4 beds / 4.5 baths – 3,136 S.F.
Contract Price: $2,475,000 ($789/S.F.)
2005 Sales Price: $3,400,000 ($1,084/ S.F.)
Today’s Discount: 27%
• A spectacular 51-story oceanfront tower
• Designed by Carlos Ott and Fortune Development Int’l
• Beautiful entrance with cascading fountains, lush landscaped gardens, reflecting pools, and contemporary décor throughout
• Three-story Grand Entrance Lobby with direct ocean and pool views
• Located directly on the Ocean close to Bal Harbour Shoppes and Aventura Mall, as well as easy access to Miami and Fort Lauderdale International Airports
Downtown Miami’s Most Luxurious & Lavish Building, the Jade Residences is a 49-story building offering 326 luxury residences with advanced technology. Spectacular Ocean and City Views, state-of-the-art security system, Infinity edge pool, Sauna, steam room, fitness center, European spa, racquetball, concierge services.
• 49 story architectural masterpiece designed by Bernard Zyscovich
• Distinctive three-tiered tower offering views of Biscayne Bay, Downtown Miami and Key Biscayne
• Grand entrance lobby graced breathtaking 21-foot ceiling with contemporary deco
Recently, there has been flurry of articles in the newsmedia about a pronounced increase in home sales, which has also led to a stock market rally in the runup to the Thanksgiving Holiday. I’d like to take this opportunity to put a bit of local perspective on this latest sales trend:
