Market Report for Miami Beach Homes for Sale | Q1 & Q2 2020

Market Report for Miami Beach Homes for Sale | Q1 & Q2 2020

Comparing the closed sales for the first 6 months of 2020 Vs 2019, the increase year over year is above 20%, which represents a strong increase considering the current circumstances and considering the many recent sales that are not reflected in the records yet.  It is very remarkable to see these kind of results in the middle of a pandemic which brings along economic challenges.

In the last 30 days, close to 70 properties have gone into contract in the area, which is a clear indicator of the beginning of a strengthening of the market.  It will take a couple of months for the existing contracts to be recorded as closed sales. This Market Report for Miami Beach Homes for Sale is written with the intent of reading the market and understanding its behavior, we look at the different price points, as well as closed and pending sales for each price range.

What can you buy in Miami Beach with less than $1M 

We saw 35 closed sales in 2020 and an inventory level of 12 months. This price ranges shows 20 pending sales however, which means there are many potential closings in the pipeline, an indication of a strengthening market. Properties closed on average with a 9% discount on their last listing price and 15% on their original listing price. When we look at the individual segments, the lower end market of properties below $1M, are averaging a price per SF of $365.  As a general guideline, when shopping for a home in these price ranges, we have to consider that the lower price point per square foot in the $200’s will most likely be a property in need of major improvements and renovations.  A the range of $400 per SF properties might also call for renovations but in general, it would be a home in move-in conditions most likely without a pool.

An example of a property which recently sold for $373 per SF is 5825 Alton Road. This property stayed 238 days on the market and sold for $850,000 after being originally listed for $1,2M and then reduced to $995,000.

This is an example of a property which recently sold for $379 per SF is 3034 Sheridan avenue. This property stayed 262 days on the market and sold for $925,000 after being originally listed for $1,249,000.

Properties between $1M to $2M.  

The average price per SF is $544 with 48 closed sales in 2020 and 98 currently active listings. As per August 1 there are 20 pending sales which is a sign of a market that is gaining strength. The market is showing a moderate buyers market with 14 months of inventory. Properties closed on average with a 10% discount on their last listing price and 15% on their original listing price.

1312 15^th Terrace is an example of a property which recently sold for $478 per SF. This property sold after 478 days on the market for $1,030,000. Its final listing price was $1,225,000 and its original listing price was $1,275,000

2419 N Meridian Ave sold for $588 per SF after being on the market for 656 days. The property sold for $1,485,000. The original listing price was $2,195,000 and the final listing price was $1,650,000

Properties between $2M to $3M

This price range saw 14 closed sales in 2020 with 8 pending sales. The average sold price per SF is $640. The level of inventory is higher here with 36 months. Properties closed on average with a 10% discount on their last listing price and 15% on their original listing price.

4610 Alton Road sold for $664 per SF. The property was listed for $2,490,000 and sold for $2,350,000

4315 N Meridian Ave sold for $691 per SF after being on the market for 460 days. This waterfront home sold for $2,925,000 after being listed for $3,900,000 (originally) and $3,090,000 (last listing price)

Properties between $3M to $5M

The average sales price per SF is $855. Within this price range we see 42 months of inventory, 55 active listings and 9 closed sales in 2020. Till date we count 8 pending sales. This is one of the price ranges with the highest level of inventory and the lowest amount of pending deals.  Properties closed on average with a 12% discount on their last listing price and 20% on their original listing price. As we already forecasted in our 2020 Miami real estate report; Miami Beach homes in the $3M-$5M price range allow for great opportunity.

280 S Coconut Ln on Palm Island sold for $864 per SF (Waterfront home). This property sold for $4.9M while it was originally listed for $7.9M with a final listing price of $6.9M

321 W Rivo Alto Dr on the Venetian Islands was 235 days on the market before it sold for $3,6M ($941 per SF). The home’s last list price was $4M and its original list price was $4.5M.

Miami Beach Homes above $5M

The average sold price per SF is $1,434 with 42 months of inventory and 20 closed sales in 2020.  These properties provided for an average of 12% discount on their last listing price and 19% discount on their original price. There are currently 16 homes under pending contract in this segment. These are mainly waterfront properties located in the most exclusive addresses on North Bay Road and the Islands. Closed sales show a high amount of months of inventory, but the trend of the recent closed sales and pending sales shows a particularly steep acceleration of this market.

4330 N Bay Rd is sold for $9,750,00 or $1,209 per SF. The original listing price was $12,950,000 and the last listing price was $11,995,000.

Miami Beach Real Estate Market Recap

We can see that the lower end of the market up to $2M is relatively active, but when we go over the $2M range the inventory is higher, around the 40 months.  These numbers are based on closed sales for the first 7 months of the year and the available inventory in each price bracket. However we went further and looked at the number of properties that went into contract in the past 45 days. A whopping number 0f 72 properties went under contract. Of the in total 72 properties, 40 are in the $0M -$2M range and an impressive 16 of these are in the $5M+range. This confirms the current accelerated trend of relocations to Miami Beach as a direct result of the pandemic.  High net worth individuals are, now more than ever, making the move to South Florida. For the properties below $2M, the low interest rates provide for an incentive to buyers.

.Many sellers are in a weakened position and in need to get liquidity. They are offloading their real estate assets and as a buyer you are in a stronger position right now. If you are one of those buyers willing to get in and ready to make a deal you might be seeing some opportunities that you would normally never see in this desired area. We see great deals being made and properties are selling with considerable discounts. You have to behave against the market in order to take advantage of this market.