Miami Beach Waterfront Homes Blog

According to University of Florida oceanographic reports over the past few days, the east coast of Florida is at some risk for contamination from the leaking BP oil rig in the Gulf of Mexico.

Based current models, the expanding oil slick could get caught in a loop current which would redirect it to the Florida Straits, up into the Gulf Stream, and ultimately up the east coast of Florida.

The many waterfront Estates and Luxury homes on Key Biscayne and Fisher Island would be especially vulnerable to contamination.  These islands have direct exposure to the Atlantic Ocean and are considered much more vulnerable to potential contamination.

The island communities off of Biscayne Bay, however, such as the Venetian Island chain, as well as Palm Island, Star Island, Hibiscus Island, and Sunset Islands are thought to be much better protected, as they are located inside several protective barriers.  In addition, if oil slicks were to be spotted, several Coast Guard stations have been pre-stocked with rubber barriers that would be deployed helping to stop oil from contaminating the Biscayne Bay island communities.

As a long-time resident of Miami Beach, I’ve witnessed a remarkable transformation in our community.  When I moved to Miami Beach in 1992, the waterfront island communities consisted of mostly aging, smaller winter homes that had long-ago seen their heyday.  For example, Palm Island was where Barbara Walters grew up, and where Al Capone had a winter hideaway.

The most recent evidence of Miami Beach’s resurgence and rise to national prominence can be witnessed in the recent DNC fundraiser that was held at the Glorida Estefan’s house on Star Island, featuring a personal appearance by none other than Barack Obama.

Miami Beach waterfront homes continue to attract celebrities, high net wealth individuals (otherwise known as the rich and famous), and those seeking security and privacy. The architectural uniqueness, beauty, quality of life, and the rich variety of homes in the different island communities is like no other on the planet.

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%

I’m often asked about the best deals in Miami Beach’s premier waterfront homes and condo buildings. Specifically, most active buyers want to know how much lower can prices go and what constitutes a true “bargain” today?  Lately, I have noticed a divergent trend among Miami Beach properties (both homes and condos).  The most sought after condos in premier buildings such as The Continuum Condo,  Murano at Portofino, Portofino Tower, Icon, and Murano Grande have seen a surge in sales activity in the past few months. The premier waterfront single family homes and condos are selling NOW at significantly discounted prices.

The most recent condo and home sales continue to demonstrate that buyers are willing to pull the trigger and purchase homes and condos that are priced right and significantly discounted from 2006 closed sales prices.  What is the right price?  It all depends!

A few divergent examples of Recently Sold Waterfront Miami Beach Condos and Single Family Homes:

The Continuum Condo – South Tower Penthouse-1

Continuum Penthouse

Magnificent and massive South Beach oceanfront 3-level penthouse.  360 views, 5 bedroom/7.5 bath, 13′ ceilings (26′ in dining room) & 7,000SF under a/c,  pool, Smart house touch panels integrate high-end audio, video, auto shades, HVAC, lighting, security, 4-plasma TVs, wi-fi, private elevator, all on top of the most exclusive 13-acre gated enclave with spa/club, 3 tennis courts, 3-pools and 2 rest. at the southernmost tip of the most exciting part of South Beach. Also included in the sale were four private parking spaces.

:  12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse

:  None

Sold Price: $9,900,000
Original “For Sale” Price : $25,000,000
Previous Sales Price (2003) $7,000,000
Bedrooms: 5
Bathrooms: 8
Condo S.F.: 7,374
Sold Date: May 15, 2009
Sold Price per S.F.: $1,342
Discount from Original Asking Price: 60.4%

The Bentley Bay – South Beach Design Group Showcase Condominium

Bentley Bay Condo # 1811

Amazing 270 degree views of Downtown Miami, Star Island, Fisher Island, and the Ocean from this contemporary designed two bedroom condominium. Terrazo floors, custom lighting, clean design and decorator appointed finishes.  The original owners had spent well over $200,000 in upgrades and finishes alone!

:  270 degree views of Biscayne Bay, Downtown Miami, and the Ocean, beautiful finishes & design.  Boutique Building.

:  High Maintenance Fees and construction issues at The Bentley Bay

Non-MLS Sold Price: $480,000 (2009)
Original “For Sale” Price : $1,595,000 (2005)
Previous Sales Price: $1,090,000 (2006)
Bedrooms: 2
Bathrooms: 2
Condo S.F.: 1,250
Sold Date: May, 2009
Sold Price per S.F.: $384/S.F.
Discount from 2006 Asking Price: 72%

Palm Island- Single Family Home with Old World Charm

Palm Island Miami Home

Beautifully updated 2-story Mediterranean charming home on exclusive, guard-gated Palm Island. Paradise living on secluded island just minutes from the excitement of South Beach and downtown Miami. Easy commute anywhere in South Florida. Walk to new park/playground/tennis courts. 4 bdr/ 3 bth, updated kitchen, marble baths. Open & bright design.

:  Charming Home, Spectacular location on Palm Island, Gated Island Community

:  Small Lot, some work needed on property

Sold Price: $660,000 (2009)
Original “For Sale” Price : $1,749,000 (2006)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,616
Land S.F.: 5,775
Sold Date: May, 2009
Sold Price per S.F.: $252/S.F.

Discount from Original Asking Price: 62%

Palm Island- Double Lot Waterfront Home

Coconut Lane Home - Palm Island Miami

Waterfront home on a double sized lot with lush landscaping, 100 ft of open bay on 24 hour gate guarded Palm Island.  Amazing views of downtown Miami and Cruise ships.  The home included a private dock with Boat Lift, a two car garage, sauna, outdoor shower, pool, large entertainment room, and even a real working fireplace.  Marble and wood floors throughout, stainless steel appliances, Hurricane Impact windows, and a balcony as well as covered Patio on the second floor to enjoy the views!

:  100 ft. Prime Waterfront Lot, Spectacular location on Palm Island, Gated Island Community

:  Home needed some updating

Sold Price: $2,700,000 (2009)
Original “For Sale” Price : $5,800,000 (2006)
Bedrooms: 3
Bathrooms: 3
House S.F.: 3,180
Land S.F.: 14,000
Sold Date: May, 2009
Sold Price per S.F.: $849/S.F.

Discount from Original Asking Price: 53%

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