June 2017 Miami Beach Market Update

July 4, 2017 Michael Bordenaro

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!