Miami Beach and South Beach Real Estate Market OVERVIEWMiami Beach Real Estate

Miami Beach condo sales activity has increased significantly in the second quarter of 2011, especially for waterfront luxury properties. The second quarter of this year was also defined by an increase in high-end Miami Beach home sales. The Miami Beach and South Beach condo and single family residential market experienced sales surges fueled by strong demand for waterfront and oceanfront properties. Ultra-luxury waterfront communities have witnessed near-record sales activity since the housing market price corrections of the past few years. For example, this year’s most ultra-luxury home sale was an incredible Star Island home that sold for an amazing $25,500,000.

Home price indicators saw positive gains, especially for zip codes 33139, 33140, & 33141 in Miami Beach with a boundary up to 30th street. The median sales price declined 15.9% year over year to $925,000 for Miami Beach single family homes. Consequently, the number of closed home sales transactions in Miami Beach increased 6.6% to sixty five individual homes sold during this period. High end, luxury homes sales increased and defined the market, which is consistent with the overall national trend of wealthy individuals (especially foreign buyers) driving the luxury real estate market in premier real estate areas of the country. Although Miami Beach single family home prices declined as sales edged higher (median sales price declined 15.9% to $925,000 down from $1,100,000) which is about 14% of Southeast Florida regional sales.

In highly desired waterfront areas with a high concentration of luxury condo buildings (such as the South of Fifth neighborhood of South Beach) slightly lower sales prices, and an influx of wealthy cash buyers, attributed to a large increase in the number of sold condominiums. Miami Beach's market trends indicate a stabilization in condo prices, with the average price per square foot declining by just 0.6% year over as the number of closed sales surged 25.3%.

Miami Beach's overall Real Estate Market has seen much positive news this year, including an increase in luxury waterfront condo & home demand, record breaking sales, more affordable sales prices, condo building sell-outs, and a steady stream of international buyers making second and vacation homes purchases on Miami Beach.

Summary of Miami Beach Real Estate Market activity
Miami Beach Home sales statistics for zip codes 33139, 33140, 33141
Single Family Homes for Sale ($1 Million and above): 294
Miami Beach Homes Sold YTD ($1 Million and above): 86
Average Miami Beach Home Sale Price: $3,401,000

Market Analysis of Miami Beach Home Sales YTD

Market Analysis of Miami Beach Home Sales YTD
Property Type: Single Family (RE1)Status: Closed SaleNumber of Properties: 86
#Beds#FBathsSF/FFList PriceLP$/SqFtSale PriceSP$/SqFt

Miami Beach Condo sales statistics for zip codes 33139, 33140, 33141:
Condos for Sale ($1 Million and above): 1,812
Miami Beach Condo Sold YTD ($1 Million and above): 163
Average Miami Beach Condo Sale Price: $2,260,810

Miami Beach Condo Sales YTD
Miami Beach Condo Sales YTD
Property Type: Condo/Coop/Villa/Twnhse (RE2)Status: Closed SaleNumber of Properties: 163
#Beds#FBathsSF/FFList PriceLP$/SqFtSale PriceSP$/SqFt

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I am an optimist and expect us to have a bright and active future marketing and selling Miami Beach single family homes to both to international and domestic buyers looking to own a piece of paradise. Following up from our last sales update regarding the overall trend in terms of prices and pending sales trends for Miami Beach (South Beach area) for January, 2010:

Some local Miami Beach perspective on this latest sales trends for zip codes 33139 and 33140:

55% of the homes sold in January in Miami-Dade County were priced under $500,000 and these homes that sold were actively on the market for an average of 30 days.

Price trends at the lower end of the market have been positive, with the latest closed sales showing flat pricing, and in some cases a slight appreciation in neighborhood values. However, in the higher price ranges (over $500,000), we are still seeing weakness in demand and no decline in supply of new inventory.

Below is the supply of houses listed for sale in Miami-Dade County in October, according to the MLS:

  • - Under $500,000: eight-month supply of homes
  • - $300,000 to $1 million: 21-month supply
  • - Over $1 million: four-year supply

Miami Beach’s luxury housing market falls into mainly in the over $500K category, however, the supply is much more restricted due to the fact that these are islands communities. Also, since there is no new construction taking place, I continue to expect Miami Beach's housing inventory to slowly work it's way down to a healthy six to nine month supply for the luxury segment of the market.

Miami Beach Housing Inventory:

  • - $300,000 to $500,000: less than six month supply
  • - $500,000 to $1 million: 15 month supply
  • - Over $1 million : 24 months supply

As I speak to an ever-increasing number of motivated sellers as part of my daily/weekly round of listing appointments, I continue to emphasize to everyone that there is NO room in the local housing market for overpriced listings. The strongest demand continues to be for turnkey (completely remodeled & finished) waterfront and non-waterfront homes that are priced RIGHT! The issue today is not so much the current inventory levels of unsold homes, it's the expected supply of NEW Miami Beach unsold homes that are expected to come on the market in the next few years. I personally know of quite a few sellers that have kept their homes off of the active market waiting and hoping for the market to "turn around".

To view latest Miami Beach sales data, click here.

* Data Sources: MLS & Miami-Dade Public Records

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