In 2017 the Miami Beach real estate market saw an overall decline from 2016 to 2017. In 2016 there were 2179 closed sales in Miami Beach. This includes condos and single family homes. In 2017, there were 2022 closed sales. That is an 8% decrease in overall sales. Lets break things down even further by condos and single family homes, as these segments of the market are quite different from each other.
Single Family Homes
Starting with single family homes. In 2016 there were 217 Miami Beach single family homes sold at an average sale price per square foot of $672. In 2017, there were actually slightly more sales at 231 homes sold but a lower price per square foot of $637. This is an indicator that demand for single family homes in Miami Beach is up, and buyers will generally take advantage of lower prices.
The condo market on the other hand is quite different. 2017 saw 1791 closed sales with a $513/ sqft average. 2016 had 1962 closed sales at $535/sqft. This is 9% decrease in condo sales year over year and a 4% decrease in sold price per square foot. This is a strong indicator that prices and overall sales of Miami Beach condos is on a downward trend. Combine this with a whopping 21 months of inventory currently available in Miami Beach based on the amount of sales in 2017. This most likely means that condo prices in particular will continue to fall through out 2018 as more units hit the market.
Analysis and Summary
A balanced market has roughly 6 months worth of inventory, meaning its not really a buyers or a sellers market. When the months of inventory surpasses 6 months, now you are generally dealing with a buyers market as there are more options for potential buyers to choose from. Since there are currently 21 months of inventory, this would make the current Miami Beach market a clear buyers market.
With that being said, we can call it any type of market we want, but the trend I personally see happening is sellers listing homes at absurdly high prices, despite the amount of inventory available. Since very few homes are in the condition necessary to command top dollar, this will leave more and more units sitting on the market until they eventually sell or are taken off the market.
So my advice for both sides is this. If you are a seller thinking about selling, you can certainly still sell in a buyers market, but its imperative to pay close attention to the amount homes similar to your are actually selling for. Forget about the ASKING price of similar homes, it only matters what homes are SELLING for. If these comparable sales are acceptable to you and in line with your sale expectations, then it is a great time to sell!
Buyers, you have a lot options out there right now. Depending on the type of property you are looking for and your budget, it may be possible to look in price ranges slightly over your budget in hopes of negotiating a fair market price for the property you want to pursue. This doesn’t mean sending ridiculously low, lowball offers, it means doing some research, and determining what the home is truly worth, and making your offer based on these numbers. This strategy will net you the best results and land you the property you have been looking for!
Call me today to discuss buying, renting or selling in Miami Beach!