Luxury Homes for Sale in Miami Beach | The 2018 Market Analysis
Click here to see all the other videos for our 2018 Miami Luxury Real Estate Report (Videos for Coral Gables, Coconut Grove, Brickell, and Pinecrest)
A Buyers Market
Miami Beach inventory continues to rise and more options than ever before are out there. This makes it by definition a buyers market. Despite an improved price per SF through the first quarter of 2018, the increasing supply of inventory gives buyers much more choices to shop around before actually pulling the trigger. This will very likely impact the price per SF in the next portion of 2018.
With an improved price per sqft off the 2016/1017 numbers, but with a large supply of inventory, now seems like a good time to make aggressive offers and get a good deal!
Miami Beach luxury homes saw their prices peak in August 2015 followed by an increase in inventory and much needed price corrections on a solid number of expensive homes that were overpriced and sat outside the parameters of the market. Today’s buyers are more price conscious and do not want to pay over-market prices. The properties that are priced at a premium have trouble selling, and sellers are noticing now that buyers are less eager to pull the trigger with so much inventory available, which makes for a more apprehensive buyers market.
The Miami Beach luxury single family market certainly makes up the largest percentage of sales across Miami at 36%. This is however down from last year when it accounted for 46% of sales of all Miami Luxury sales (the increase in Coral Gables luxury homes took some of the majority of this market share difference). With all that said and done there are a lot of options. Over $3m+ you will find 110 options, this is covering the area from 17th and Collins all the way up to North Beach, which starts at 71st and Collins (this does not include Venetian Island properties).
As of the beginning of July there are 37 homes that are priced between $3m – $5m, 36 homes priced between $5m and $10m and 37 homes over $10m. This makes for a freakishly balanced spread across the luxury sector! Not top heavy or bottom heavy but spread evenly. Over 70% of the recent sales in the luxury end of the market are waterfront properties, the largest percentage of which were sold between the $3 mil and $6mil.
The properties priced at the lower or mid range per SF, are seeing a slight upward trajectory with accelerated sales. This year we are seeing more $10M+ properties under pending sales than last year. This is not because of any particular new capital injection, but merely because sellers are finally selling at the numbers that are right for the market. Good product sells as long as it is priced right, but lets not forget that 60 months of inventory is a solid 3 times that of what a balanced market would typically display. Once the price corrects with some of the speculative luxury product, we will see much more product move and inventory will be absorbed as there feels to be no lack of buyers waiting in the wings
Advice for Buyers of Miami beach Luxury Homes
Luxury home prices on Miami Beach have for the greater part come back to a more realistic level. Having said that, some sellers are still not quite realistic, and negotiations should be aggressively pursued. With a good amount of inventory, there are solid choices and more newly constructed or renovated homes than ever before and some real legitimate quality constructions. As a luxury property specialist who has guided many clients into purchasing brand new homes and the husband of a renown architect and interior designer, I have an eye for distinguishing between the good, the bad and the ugly. If you are looking to purchase a brand new home, please contact me today to make sure you are not paying top dollar for photogenic properties with basic finishes
Advice for Sellers of Miami Beach Luxury Homes
With a lot of inventory and hesitant buyers, you will have to price your property at market value. Do not try to get the prices of 2015, because your home will be sitting on the market for a long period of time. As mentioned before, there are buyers on the Beach, but they want to buy at market price and do not want to pay the record prices we saw in ’15. The market is currently seeing price corrections and sellers will need to accept this in case they want to sell. It is also essential to have a realtor with national and international outreach. Sellers need a realtor who puts their luxury home under the eyes of investors or buyers from the high-tax states (this is the category of buyers who are increasingly looking into Miami properties and will be playing a significant role in driving the market through the rest of 2018/2019) and other main metropolitan areas around the globe.
Contact David Siddons today for more information on the Miami Luxury Real Estate Market:
David Siddons | David@siddonsgroup.com | +1.305.508.0899
David Siddons is a top producing realtor with nearly $100M in yearly sales. He is known by peers and clients as a market analyst and he is the author of several groundbreaking Miami real estate reports.
These are the most commonly asked Google Real Estate Related questions
2. What is the best New Construction Condo in Fort Lauderdale?
In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.
3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami?
Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!
WHY WORK WITH DAVID? THINGS YOU SHOULD KNOW...
For all our analytics we are agents driving some very unique and advanced tech. We Provide a granular and custom experience that empower our clients with the insight and tools to understand the most complex behaviors of any local markets.