The 2019 / 2020 Miami Beach Real Estate Forecast

The 2019 Forecast for Miami Beach Homes

• We will see more movements in the ultra-luxury end ($5M+) of the market, because of heavy discounts. Expect to see many properties to be sold at 20%-30% below original listing /asking price.
• Miami Beach is experiencing somewhat of an identity crisis. While before Miami was purely known for “The Beach”, our city has created more luxurious neighborhoods over time and has become more diverse. Brickell and Wynwood / Design District are now offering better shopping and restaurants. Many buyers for 2019 are relocating families or High Net Worth individuals from high tax states. These families are looking for a high quality of life with great schools and flock into Coral Gables and Coconut Grove.
• The overall market will see a continuous drop in dollar per SF as the market is oversupplied and still priced a little too high to appeal to some buyers.
• Sellers need to be more aggressive in order to sell their properties. Although many have realized in the last few years, we still see many homes that are priced well above market price and sit on the market for a long period of time.
• The single-family market between $2M and $5M is very bloated. In order to absorb this inventory, we expect great price reductions and many good deals to be done.
• We will see more aggressive land sales in Miami Beach. With elevated construction costs, homebuilders will need better deals on land. A $10M land will now need to sell for $7.5M or $8M to make it attractive for builders and to take the heat out of the market.
• With this said, at the very high end of the market (above $5M) we have already seen 20 sales in the first quarter of 2019, so the ultra-luxury of the market end seems much better protected.

Advice for Miami Beach Buyers

While shopping around, realize that many properties are overpriced, but also recognize that some properties are priced at market level. Although some homes need to be discounted, you cannot discount all properties. We will be able to guide you correctly according to each product.

Recognize the different elevations that exist between older Miami Beach homes and brand new homes. The future values and insurance premiums on these homes could be significant.

Our expertise in waterfront homes on Miami Beach and Venetian Islands is also extremely strong so let us help in guiding you. There are a number of very subtle, but essential details when buying waterfront – ranging from the importance of East facing homes to the level of water traffic in and around some islands that can have a significant impact on your privacy.

Advice for Miami Beach Sellers

As with other markets, be conscious about prices being in line with market prices to sell. You need to price your property aggressively. Buyers are more hesitant, and more likely to come and make low offers. In case you overprice your single family home, be prepared for low offers.

Additionally recognize the huge impact of the North Eastern buyer and the relocation ‘Tax saving’ buyer on the Miami Market for 2019 and make sure to engage with an agent like ourselves who are able to reach this audience. If you are curious check out our relocation guide and blogs to see how we reach out to this market and how we serve it.