Miami Beach Waterfront Homes Blog

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.

To view latest Miami Beach sales data, visit our Miami Beach Real Estate website

* Data Sources: MLS & Miami-Dade Public Records

I’d like to highlight a few of the more significant closed sales information for single family homes located on Palm Island, Hibiscus Island, Venetian Islands and Sunset Islands in Miami Beach from May 1 through August 20, 2008.

A total of eighteen (18) luxury homes sold and closed during this time frame with an average sales price of $3,300,000. The median price per s.f. was $731, with the average time on market of 259 days. In EVERY case, ALL of these homes were significantly price reduced, and represent price rollbacks to 2004 price levels.

ARE YOU SERIOUS ABOUT SELLING? – If you own a condo or a single family home in Miami Beach (especially South Beach), and have had trouble selling, please call us for a free market analysis. I believe in telling it straight to clients (or potential clients) that wishful thinking will not carry the day in this real estate environment.

Once again, the market has shown that it rewards sellers who work with experienced, knowledgeable, detail-oriented, and top producing real estate sales people. Thanks to aggressive and creative targeted International Marketing Campaigns, we have sold ALMOST our entire Residential listing inventory from the first half of 2008.

Below are a few of the more notable home sales that have occurred over the past four months in Miami Beach:

5 beds / 5 baths 13,000 S.F. Home 19,687 S.F. Land
Original List Price: $22,000,000 Sales Price: $10,600,000
950+ days on Market, $815/S.F. Waterfront Home

5 beds / 4 baths 5,300 S.F. Home 12,163 S.F. Land
Original List Price: $6,000,000 Sales Price: $5,400,000
20 days on Market! $1,018/S.F. Waterfront Home Miami Beach

6 beds / 6 baths 6,000 S.F. Home 10,500 S.F. Land
Original List Price: $6,700,000 Sales Price: $4,600,000
400+ days on Market, $766/S.F. Waterfront Home Venetian Islands

2 beds / 2 baths 2,250 S.F. Home 10,500 S.F. Land
Original List Price: $3,400,000 Sales Price: $2,115,000
503 days on Market, $940/S.F. Waterfront Home Venetian Islands

4 beds / 3 baths 3,138 S.F. Home 10,500 S.F. Land
Original List Price: $3,700,000 Sales Price: $2,300,000
163 days on Market, $732/S.F. Waterfront Home Venetian Islands

5 beds / 4 baths 3,007 S.F. Home 8,414 S.F. Land
Original List Price: $3,700,000 Sales Price: $2,700,000
400+ total days on Market, $897/S.F. Waterfront Home Palm Island

4 beds / 3 baths 3,026 S.F. Home 9,500 S.F. Land
Original List Price: $1,695,000 Sales Price: $1,180,000
562 days on Market, $389/S.F. Non-Waterfront Property Hibiscus Island

I’d like to highlight a few of the more significant closed sales information for single family homes located on Palm Island, Hibiscus Island, Venetian Islands and Sunset Islands in Miami Beach from May 1 through August 20, 2008.

A total of eighteen (18) luxury homes sold and closed during this time frame with an average sales price of $3,300,000. The median price per s.f. was $731, with the average time on market of 259 days. In EVERY case, ALL of these homes were significantly price reduced, and represent price rollbacks to 2004 price levels.

ARE YOU SERIOUS ABOUT SELLING? – If you own a condo or a single family home in Miami Beach (especially South Beach), and have had trouble selling, please call us for a free market analysis. I believe in telling it “straight” to clients (or potential clients), as wishful thinking will not carry the day in this real estate environment.

Once again, the market has shown that it rewards sellers who work with experienced, knowledgeable, detail-oriented, and top producing real estate salespeople. Thanks to aggressive and creative targeted International Marketing Campaigns, we have sold ALMOST our entire Residential listing inventory from the first half of 2008.

Below are a few of the more notable home sales that have occurred in the over the past four months in Miami Beach:

5 beds / 5 baths 13,000 S.F. Home 19,687 S.F. Land
Original List Price: $22,000,000 Sales Price: $10,600,000
950+ days on Market, $815/S.F. Waterfront Home

5 beds / 4 baths 5,300 S.F. Home 12,163 S.F. Land
Original List Price: $6,000,000 Sales Price: $5,400,000
20 days on Market! $1,018/S.F. Waterfront Home Miami Beach

6 beds / 6 baths 6,000 S.F. Home 10,500 S.F. Land
Original List Price: $6,700,000 Sales Price: $4,600,000
400+ days on Market, $766/S.F. Waterfront Home Venetian Islands

2 beds / 2 baths 2,250 S.F. Home 10,500 S.F. Land
Original List Price: $3,400,000 Sales Price: $2,115,000
503 days on Market, $940/S.F. Waterfront Home Venetian Islands

4 beds / 3 baths 3,138 S.F. Home 10,500 S.F. Land
Original List Price: $3,700,000 Sales Price: $2,300,000
163 days on Market, $732/S.F. Waterfront Home Venetian Islands

5 beds / 4 baths 3,007 S.F. Home 8,414 S.F. Land
Original List Price: $3,700,000 Sales Price: $2,700,000
400+ total days on Market, $897/S.F. Waterfront Home Palm Island

4 beds / 3 baths 3,026 S.F. Home 9,500 S.F. Land
Original List Price: $1,695,000 Sales Price: $1,180,000
562 days on Market, $389/S.F. Non-Waterfront Property Hibiscus Island

The State of Florida is still in desperate need of property tax reform & reduction. The measure that was approved last year has helped to provide some limited tax reductions, but has turned out to be a complicated & very limited property tax reduction effort. There is a new initiative to significantly reduce property taxes next year, called AMENDMENT FIVE, which would eliminate from 25-40% of today’s current property taxes, creating a SIGNIFICANT reduction in the total cost of home and/or business ownership. To replace the lost revenue, Florida sales tax would increase by about 1%.

5 Reasons To Vote YES for Amendment 5

Amendment 5 is a long overdue tax cut for all property owners: families, businesses, second homeowners and investors. Property tax levies have doubled over the past six years – from $15 billion in 2000 to $30 billion in 2006. With higher fuel prices and food costs, and stagnant incomes, it’s no wonder Florida families are struggling to make ends meet. If you’re living the American Dream in Florida, you stand to save 25% to 40% on your property taxes in 2010.

Amendment 5 will jump start Florida’s economy. Economists estimate that Amendment 5 will save property owners more than $10 billion in taxes. This will increase the liquidity and net spendable income of millions of property owners.

Amendment 5 will shift the burden of funding education from property owners to all who access the public school system. Currently, property owners pay a disproportionate share, compared to renters, for our schools. And property owners whose children attend private school pay tuition and public school taxes. By funding schools through sales taxes and other measures, Amendment 5 creates a more equitable tax system.

Amendment 5 offers much-needed tax relief for millions of property owners and continues the momentum created by Amendment 1 – approved by voters in January 2008 – toward reforming Florida’s archaic property tax system. Amendment 5 also pressures legislators to get serious about tapping stable and lucrative revenue sources for schools such as Internet sales (a $3 billion cash cow and an increase in state sales tax — much of it paid by non residents!).

Amendment 5 will provide much-needed tax relief to Florida’s seniors, many of whom fear losing their homes because of an inability to pay higher property taxes on a fixed income. On November 4, you have an unprecedented opportunity to vote YES for the biggest property tax cut in Florida history. Vote YES on Amendment 5.

The Five Most Common Myths about reducing Property Taxes Further:

Myth #1
Opponents say Amendment 5 will take valuable funding away from schools.

False! Amendment 5 requires the Legislature to provide required funding for schools. Instead of the funds coming from property owners in the form of taxes, it could come from sales taxes, reduced spending or any other source determined by lawmakers.

Myth #2
Opponents say Amendment 5 will raise the state sales tax and disproportionately affect the poor and needy.

False on two counts! First, Amendment 5 does not require the Legislature to increase the state sales tax. Second, necessary goods and services will remain exempt from a higher sales tax. These include unprepared food, rent, heating fuel, medicine, electricity and health care services.

Myth #3
Opponents say Amendment 5 equals a sales tax on services.

False! Amendment 5 does not dictate to lawmakers how to make up the revenue to fund our schools — including any new tax on services. It points out obvious options, such as a reduction in spending, and encourages lawmakers to come up with other revenue sources, such as collecting sales tax on items currently taxed in retail stores but not when purchased on the Internet.

Technorati Profile

Statistical Source: The Miami Herald 6/19/08

Everyone is well aware of Miami’s downtown building oversupply, but just how bad is it? In the last six years, 22,737 units were built or are now under construction in Miami’s urban core — more than double the number built in the nearly 40 previous years, it’s a large figure, but still less than many predicted. Perhaps no section of Florida has seen more building in recent years than downtown Miami’s urban core.

However, with the housing market turning in 2006, the credit crunch of 2007, and inexperienced developers having to cope with rising construction costs & mismanagement, many proposed projects never went beyond the planning stages. With few new projects starting in the past two years, the real scope and size of Miami’s downtown condo craze is starting to come into focus. Although the downtown market still has a vast surplus of condos- it is not 50,000 or 80,000 new units, it’s estimated that 22,000 new units. The bad news is that it is still 22,000 new units.