5 Reasons Why You Should be Selling your Key Biscayne Home in 2021!
The 5 Reasons why the Key Biscayne Real Estate Market is Booming!
Key Biscayne is one of Miami’s most sought after residential areas, just a bridge away, six miles from Brickell/downtown Miami. Buyers love the many waterfront homes, parks, beaches, laid-back affluent lifestyle, the community as well as the great schools that are located on the island. With the increased interest in Miami real estate, the demand for Key Biscayne homes has increased in the last few months. This article shows you how desired the Key Biscayne real estate market is, featuring the performance of homes in 3 different price ranges: $1M-$3M, $3M-$5M and $5M+. It will also show you which Key Biscayne sub-markets performed the best, highlighting where we saw the most sales, the biggest drops in inventory and the greatest price increases.
As an agent who gets about 5 serious relocation calls on a daily basis (on account of my high ranking website), I find myself struggling with the current inventory. As I find it increasingly difficult to find the right homes for my buyers, I am desperately looking for home owners who would like to sell their property off or on market. If you are considering selling your Key Biscayne home, we have buyers looking in the $1M-$5M range who are ready to make an offer. There is no need to even list your property, just a willingness to entertain offers and to be prepared to sell at the right price. I have buyers looking that I can bring directly without the need to go on market to list your property. Please contact me for more information at (305) 508-0899
5 Reasons Why You Should Be Selling your Key Biscayne Home in 2021!
Inventory is extremely low and went down by as much as 75% compared to last year.
It should be no surprise that with the enormous demand for single-family homes, Key Biscayne’s inventory has decreased significantly. The $1M-$3M range saw its inventory drop by 75% from 32 months of inventory to 8 months of inventory. The $3M+ markets also saw its inventory drop from 30+ months to 13/14 months of inventory, which are very low numbers for the ultra-luxury real estate market. While in previous years the supply of homes would range between 90 and 120 homes, in 2020 this supply decreased rapidly to the 50 homes we have for sale today! Buyers in the $1M-$3M range have 19 homes to choose from, while buyers in the $3M-$5M and the $5M+ have just 15 homes to choose from! Please if you are considering listing your home give us a call at 305.508.0899.
Key Biscayne Experienced a Surge in Sales!
Sales Prices are Increasing by as much as 28% as Demand Is High.
In the $1M-$3M range, we see a value increase of 28% compared to the same period last year and 11% compared to the same period two years ago. In the $5M+ market, a market with limited sales in one or more years, we have to look at sales on a case-by-case basis and not so much at the averages. For the$5M+ markets I recommend you look at the section “The Largest Deals” in which we look in further detail to what has sold in each price range.
The average difference between sales and original listing price became smaller by at least 50% compared to last year.
In recent years, sellers of Key Biscayne homes had to accept large discounts on their asking prices. The $1M-$5M market recorded between 14% and 18% of discounts in previous quarters while these last months we have seen discounts decrease to just 8%. As the $5M+ market saw limited sales in one or more years we cannot make generalizations on this and therefore we refer to the section below, which discusses individual sales.
5 Reasons Why You Should be Selling your Key Biscayne Home in 2021! | The Largest Deals in Key Biscayne
In the $1M-$2M Range
This had been the recent trading range for traditional Mackle homes and that was true for most of 2020. In fact 20 homes changed hands between $1M and $1.3M in 2020, but there are none left. In this price range we saw the property on 445 Allendale Rd trade for its land value which was $1,330,000 after being on the market for 36 days. It was originally listed for $1,450,000 and then reduced to $1,380,000. 442 Warren Ln sold after 24 days for $1.2M or $1,150 per SF. It was originally listed for $1,325,000 and then reduced to $1,249,000. In 2021 we saw 230 Buttonwood Dr trade for $1.7M after being on the market for just 27 days. It was originally listed for $1,799,000
In the $2M-$3M Range
This price range used to include mediterranean homes built in the 2010’s and now includes mostly premium-priced Mackle 4 or 5 bedroom homes with good upgrades, ready to move in as well as townhomes in Fernwood; properties that up till 2020 were priced under $2M. The highest sales records belong to small properties that sell for their land value. Looking uniquely at homes that are ready to move in and do not sell for their land value we saw two record sales happening in the last months. Homes in this price range barely trade above the $1,000 per SF mark. In the last months we saw three homes trade above this amount. 211 Greenwood Dr traded for $1,081 per SF after being on the market for just 26 days, 335 Cypress Dr traded for $1,072 per SF after being on the market for just 10 days and 375 Hampton Ln that traded in 11 days for $1,002 per SF. Another significant sale in this price range is 310 West Enid Dr that traded at full ask ($2.3M) for $999 per SF.
In the $3M-$5M Range
This price range includes most of the new construction homes in standard/ oversized dry lots as well as few remnant waterfront lots/teardown homes. Dry lot homes in this price range seldomly sell for more than $900 per SF, but in Q4 of 2020 we saw one listing of the David Siddons Group reach the sales price of $1,047 per SF. This property on 151 Buttonwood Dr sold in 56 days after being listed for $3,999,999. In this price range Key Biscayne saw its highest sales price per SF ever recorded for a waterfront home. This was a home on 130 Knollwood Dr that sold for land value for $4,350,000 or $2,069 per SF. Its original asking price was $4.8M which was then lowered to $4.6M. This property sold in 133 days. 460 W Matheson Dr sold for $4,550,000 or $1,544 per SF after being listed for $5.4M. This property stayed on the market for 710 days.
Our listing on 151 Buttonwood Dr sold in November of 2020 for $1,047 or $3,880,000. While it was previously on the market for 308 days, after listing it with the David Siddons Group it sold in just 56 days. Looking at historic sales in this price range, this was one out of only 6 dry lot homes that ever sold for more than $1,000 per SF.
In the $5M+ Range
For waterfront homes we saw several impressive sales such as the sale of 7 Harbor Pt that sold for $15.5M after being 219 days on the market with an asking price of $16.5M. Our listing at 460 N Mashta Dr sold for $13M after just 4 days on the market with an asking price of $15.5M. 760 Harbor Dr sold for $10M while its asking price was $11,850,000. This property was on the market for 560 days. In 2021 511 N Mashta Dr sold for $8,850,000 after being on the market for 610 days and asking $8,995,000.
Key Biscayne Expert Adriana Montbrun from the David Siddons Group brought the buyer for the trade on 945 Mariner Drive. This property sold for $5,750,000 or $1,108 per SF after being on the market for 205 days and asking $5,975,000 .
Our listing on 460 S Mashta Dr sold for $13M. This waterfront property was put under contract just 4 days after hitting the market and sold for one of the highest prices ever.
Price adjustments are kicking-in
As the market hits inventory lows, new homes are hitting the market at drastically higher prices, higher than recent record closing prices. Couple of new construction dry lot homes are listed asking ~$1,500 per SF for homes such as 641 S Mashta Dr. and 390 Pacific Rd, both listed for $7.5M in Mashta Island and Holiday Colony, respectively. There are only 10 waterfront homes listed, all of them above $7.4M except for a single home of $5.99M, the last waterfront home available with “older pricing”.
So You are Selling your Key Biscayne Home in 2021, but where to next?
Many owners are tempted to sell, but do not know where to move to next. They do understand this is a hot market and it’s the right moment to sell, but where do they go after they sell their Key Biscayne home? Most of my sellers are selling because they see an opportunity to move up. They live on a desired street, but they want to move into a private community, move into a waterfront home, move into a brand new home or build their dream home from the bottom up. Others might have children attending private school in the Gables and are looking to move closer to that school. Will they get the same quality finish or levels of renovations in a better-fit neighborhood or in a waterfront home? No, but for the same price they can buy into a property that better fits their lifestyle or into a better property they can upgrade in the near future and in that way they are building up their capital. Today’s extreme market provides for extreme opportunity!