Miami Beach Real Estate Market Update
I am pleased to present the latest real estate condo market sales data. We examined all condo sales in Miami Beach (zip code 33139) from May-October 2007 and May-October 2008. This report will compare condo sales in these two six-month periods, which represent Miami Beach’s off season. We will publish a similar report after the spring season, and will show high-season
condo sales, as a comparison.
Here is what we found about the general condo market:
-
The number of condo units sold in these two periods was about the same: an
average of 447.5 condos in both sales periods. -
The average condo unit sales price went down about 4%.
-
The greatest drop in market value seemed to be in newer, mid-tier condo buildings that soared during the condo boom (many of the West Avenue condos, for example). They are falling back to pre-boom prices.
-
The luxury condo towers, with a few notable exceptions saw a less-dramatic fall in prices, averaging only about 5-10%.
We took a sample of some of the more-popular condo properties in zip code 33139, and this list represents all levels of condo (from entry-level to 5-star). Here are a few of our observations:
-
We see 145 unit sales in 2007 (from this group below) and 179 in 2008. This represents a 23% increase in unit sales in the sample group below. Keep in mind that the period examined was May through October in each of the two years.
-
The average selling price in this group in the 2007 period was $646.01, while the average selling price in the same period in 2008 dropped to $576.18. This represents a drop just over 10%.
-
The high-end of the market has, predictably, fared well, as the buyer of these condo units tends to be a second-home buyer looking for prime waterfront real estate.
The big question on the minds of many people is whether or not we have hit a bottom. Our sense is that pricing has returned, in many buildings, to a level where buyers are starting to scope out buying opportunities. There is also a chance that buyers at these lower levels will be able to request lower property taxes, as many property taxes still reflect the higher, old selling prices.
Loans are still harder to get than in past years, but with adequate down-payments, buyers are finding good loan programs. We recommend that a buyer purchases a property with 50% or cash equity.
The BEST DEALS at the high end continue to be at Murano Grande. This top-tier building shows average pricing of about $100 less per square foot than it’s nearest competitor, ICON, yet Murano Grande offers the floorplans and private elevator foyers that continue to be in high demand. At the mid-tier, look at how Sunset Harbour North and South seems to have held steady during the same period where many other buildings saw double digit drops!
A WORD ABOUT THE DATA ABOVE: We collected this sales data from the Southeast Florida Multiple Listing Service (MLS). While the data is
believed to be accurate, not all condo sales are recorded in the MLS. There may be additional sales not listed above. You should look at this data very
generally, as there is a certain margin of error that may exist.