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With October being the month after hurricane Irma struck Florida, the Miami Beach Market Trends are starting to return to pre-hurricane activity. With so much damage and chaos coming from the storm, it was uncertain how the market would react post-hurricane. However, for the most part everything seems to be back to normal, which is an overall good thing for Miami Beach.
Miami Beach Single Family Homes
The single family home market saw a slight drop in sales year over year from last October, however the average selling price per square foot did rise significantly. Remember, this can easily be due to the type of home being sold, its price point, location etc. These type of differences in the numbers are not typical, but definitely worth mentioning. In October 2016 17 Miami Beach houses sold for an average of $774 per square foot. This year, 14 houses sold with an average of $1077 per square foot. This is good news for the single family market as throughout 2017, the average sale prices have been declining.
Miami Beach Condos
The Miami Beach Condo market has also recovered nicely after the hurricane. In October 2016 125 condos sold at $534 per square foot. Following the year long trend, October 2017 saw quite a bit fewer sales but with higher square foot averages. Only 101 condos sold but at a slightly higher average at $541 a square foot.
In summary, the Miami Beach market has largely recovered after the storm and seems to be in line with all previous months of 2017, excluding September. I expect this same trend to continue throughout the year, and possibly into 2018. I am always like to hear from anyone who is curious to know more about what is happening in the local market. Please feel free to reach out if you would like to discuss buying, renting or selling in Miami Beach!
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The Miami Beach Market has been going through quite a bit of turmoil these days. First we had the presidential election last November as well as a Zika scare before that, and now most recently, we are feeling the aftermath of Hurricane Irma. Prior to Irma the market was consistently seeing less sales for both condos and single family homes in 2017 compared to 2016.
Single Family Home Market
The Miami Beach single family home market at first glance, doesn’t seem to be affected as much as the condo market at first glance. However, if you look closely at the numbers the average sale price per square foot in 2016 for a single family home was $721.58 and when you compare that to $550.97 in 2017, that is a sharp decline at a 24% difference. In real estate 24% is huge.
When looking at the Miami Beach Condo market, the largest change is not in the selling price per square foot, but rather the actual number of units being sold. In September 2016 156 condos sold in Miami Beach. In September 2017, only 78 were sold at a whopping 50% decrease in the number of units sold. Even though the average sale price per square foot rose slightly from $494 to $497, this pales in comparison to the decrease in sales.
I believe this sharp decrease in sales is coming from a number of different factors. One major and recent factor of course, is Hurricane Irma. The number of pending transactions that were affected by the storm is unknown, but when your city is hit by a major hurricane, it tends to delay everything that was happening before the storm, including real estate sales.
Another big factor is our global economy, the value of the U.S. dollar compared to other currencies and how that impacts the amount of foreign investment we receive. Miami and Miami Beach rely heavily on foreign investments, and now that those investments are becoming less common, the market is feeling the effects of it.
This can be a pro or a con, depending on how you look at it. The prices of Miami Beach Real estate in general have been hovering close to the bubble numbers of 2008 for a while now. The prices that are being asked in todays market are unsustainable once again, and our numbers are starting to reflect that. The market will begin correcting itself if these trends continue.
Due to the amount of inventory we have, I would say it is much better to be a buyer right now, vs a seller. Buyers have many choices, and are in the position to make offers based on “fair market value” of a listed property instead of being forced to pay what a seller “thinks its worth”. If you are thinking about selling, you can still make a hefty profit if you bought your property more than a few years ago, but only if you are willing to list at fair market value. Too high of a listing price is a guaranteed way NOT to sell, just look at all of the overpriced inventory that has been on the market for 4 months or longer.
I welcome any and all clients, old or new to reach out to me to discuss the market and what would be a successful strategy for you whether buying, selling, or renting. Also, if you enjoy these posts don’t forget to SUBSCRIBE BELOW!
The June 2017 Miami Beach Market Update has produced some rather predictable results. If you have been following the Miami Beach Real Estate market or have read any of my previous blog posts about the market, then you probably have an idea of what is happening out there. For every consecutive month in 2017, there have been less overall sales in Miami Beach for both condos and single family homes. Lets dive into the details.
Once again, the Miami Beach Single Family Home market has proven to be the more stable side of the market. In June 2016, 28 homes sold with an average sale price per square foot of $640. June 2017, the number of sales declines to 22 homes sold with $619 per square foot average. Not only did the amount of home sales go down, but overall selling price per square foot took quite a dive as well. Nonetheless, the demand for single family homes in Miami Beach seems to be much more stable than the condo market.
In June 2016 Miami Beach saw 186 condos sold at an average of $570/sqft. Move to June 2017 and those numbers change quite a bit. Only 133 condos sold, a 30% decrease in the amount of sales, but the average of $607/sqft jumps significantly. This has been the same trend we have seen for all of 2017 so far.
With these latest number available we can see the demand for real estate in Miami Beach declining. Less houses are selling, with lower averages and much less condos are selling with higher averages. At first glance, some people would say the market is going up, but this is not the case. If you are a seller right now and you have a property you purchased in 2013 or prior, there is a good chance you can sell and make a profit. If you bought after this time period, it is unlikely your property will have enough equity to turn a decent profit, unless of course you paid cash.
These numbers still point to it being a buyers market. There is plenty of inventory on the market here right now in Miami Beach which is the opposite of what is happening in most of the rest of the country. The condo sales that are seeing much higher sales price per square foot are most likely due to buyers needing or desiring to be in a particular neighborhood or building and willing to pay more. But with so fewer amount of sales taking place, this means that prices are beginning to be too high in most of Miami Beach in order to sustain at this level. It will be interesting to see how the rest of the year shapes up and if these market trends continue. If you enjoy reading these posts, please share with others who may find it helpful and SUBSCRIBE below to my monthly newsletter to make sure you receive these market updates in the future!
6917 Collins Ave, Miami Beach, FL
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1 BEDROOMS | 2 (1 full, 1 half ) BATHROOMS |
BRAND NEW RENTAL LISTING AT THE COLLINS MIAMI BEACH. THIS UNIT BOASTS A LOT OF NATURAL LIGHT, OCEAN VIEWS, BALCONY, TILE FLOORS, GRANITE COUNTER TOPS, SEPARATE LAUNDRY ROOM, HIS AND HER SINKS, WALK-IN CLOSET, HALF BATH FOR GUESTS, BAR AREA GREAT FOR STORAGE OR ENTERTAINING. THE BUILDING OFFERS PLENTY OF GREAT AMENITIES INCLUDING GYM, POOL, BUSINESS CENTER, PARTY ROOM, MENS AND WOMENS SAUNA/LOCKER ROOMS, HD CABLE AND HIGH SPEED INTERNET ALL INCLUDED IN THE RENT!! VERY WALKABLE LOCATION. THE UNIT ALSO HAS 1 ASSIGNED PARKING SPACE. CALL TODAY!
6917 Collins Avenue #411, Miami Beach, FL
Click for current price
1 BEDROOMS | 2 (1 full, 1 half ) BATHROOMS | 819 SQUARE FEET
Wake up facing the ocean every day! Feels like a beach house on the water. Balcony overlooking the pool and the ocean. Unit has a laundry room, bar area with extra storage, half bath for guests, large master bedroom with 2 closets. The building features 24 hour front desk, valet, pool, gym, sauna, steam room, business center, recreation room and covered parking. Unit comes with 1 deeded and covered garage parking space. Lowest price 1 bedroom in the building with an ocean view!