- Best of All
- Best Miami Luxury Condos
- Most popular
- Relocating to Miami
- Private Schools
- Investments
- Gated communities
- Waterfront information
- Luxury homes
- Luxury Condos
- New Construction Condos in South Florida
- Independent Pre-Construction condo reviews for Miami
- Independent Pre-Construction condo reviews for Fort Lauderdale
Rock Solid Condo Market Fueled by Cash | Surfside and Bal Harbour Q1 and Q2 2023 Market Report
Rock Solid Bal Harbour and Surfside condo market fueled by cash
Surfside and Bal Harbour Q1 and Q2 2023 Market Report. The Bal Harbour and Surfside condo market is very limited in its geographic size and number of units (currently less than 140 units for sale), compared to other condo markets on the beach like Miami Beach and Sunny Isles (respectively 700 and 340 units for sale above $500k). We always begin our market analysis with a close look at inventory levels compared to the market movement. From the graph below it is very clear that, after a steep increase in available units around the beginning of the year, the inventory has stabilized at the levels of the Fall of 2022. According to our Neighborhood Statistics Software, the months of supply indicator currently sits at Seven months.
However, it is very important to read the data correctly and realize that the months of inventory have been affected more by the slowdown in activity during the slow summer season rather than an actual build-up in the supply. While the months of inventory based on closed sales are currently at 10 months, we see that the market is gaining velocity. Recorded closed sales in the last 3 months were 38, but the total number of closed sales and pended sales is 61 moving the bar to a forecasted month of inventory down to 6 months.
We are witnessing an increased velocity with more condo units going under contract. Overall, the market is up 20% in Bal Harbour and Surfside.
In short, the demand is rapidly catching up with the supply. The Bal Harbour and Surfside market, very limited in size, remains extremely solid. This is not surprising, considering that 85% of the Bal Harbour and Surfside market does not rely on financing and it’s made of full cash transactions (only 6 out of 38 recorded sales in the last 3 months were closed with some financing).
Besides the quantity of available products, we always look at the quality. In particular, we watch the behavior of the market relative to the age of the condos (newer and older condos), and the size of the units ( 1-2 bedroom units versus large 3+ bedroom units).
See below the performance of newer condos versus condos built more than 20 years ago.
Almost 60% of the units available are located in condos built over 20 years ago – ranging between $500k and $4M. The remaining 40% are condo units built more recently. In this bucket, sale prices range between $2M and $20M.
Even if our analysis is mostly focused on beachfront condos over $500K, we believe it is important to mention Bay Harbour Island with currently 65 active condos $500+, 15 closed sales in the last 90 days, and 12 pended/under contract. This market has a high velocity, and it is drawing a lot of attention due to the big wave of condos and retail development.
About a dozen waterfront/water view boutique condo developments are planned or under construction, including some very high-end condo units. Due to its quiet location very close to the beach, its proximity to the water, good schools, and developing retail, the Bay Harbour Island will play a very important role in the luxury condo market. Read more about the new condo developments here.
Advise for Buyers
Whether you are exploring the Bal Harbour market for the first time or keeping an eye on this market for a while, realize that the availability of good units in newer condos or even remodeled units in older established condos is extremely limited and worth the premium. If the beachfront is not a must for you, consider the available options offered by the new development in Bay Harbor. If you are considering an older condo, factor the heavy assessment (current and upcoming) into your purchase price.
Advise for Sellers
If you own a unit in a condo built over 20 years ago and it’s not your primary residence, you might consider selling in the next six months. Condo values will hold very well until there are more newer options available on the market. You can take advantage of the fact that this market is not directly dependent on interest rate fluctuation and buyers are willing to pay the price for a beachfront property in this pocket.
If your condo is an investment unit, be aware that to have a decent return on your investment in the long term, you will have to come up with heavy costs of remodeling (whether that is relative to the unit or beautification and restoration of the common areas). If you own a newer condo or a remodeled unit in an established condo, your asset is limited, and you can command high prices for your unit in this market.
Read our other neighborhood and luxury reports
If you would like to get perspective on other specific neighborhoods or luxury reports. Please click here to go to our main database of reports. We update these every 6 months.
Schedule Time with David and Stefania (Our Surfside/Bal Harbour Expert)
FAQ
These are the most commonly asked Google Real Estate Related questions
1. What are the Current Best New Condos in Miami?
If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023.
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.
-
Analytical
Over 100 reports produced to date
-
Knowledgeable
Over 1800 published articles and counting
