The 2020 Key Biscayne Real Estate Market Update for Key Biscayne Homes for Sale

The Key Biscayne Real Estate Market in 2020!

The Key Biscayne Real Estate Market in 2020

Please read below our 2020 Key Biscayne Real Estate Market Update for Key Biscayne Homes for Sale. We divided this blog into homes for sale on dry lots and waterfront lots.

Key Biscayne has undergone several changes that marked its evolution from a large coconut plantation in the first half of the 20th century, to the playground of the “Winter Elite”, to a thriving year-round exclusive community with residents from all over the world. A relatively small community, comprised of roughly 250 waterfront homes and a bit over 1,000 dry lot homes, the island, its infrastructure, homes and population, continues to evolve.

Over the last decade and taking advantage of new Village regulations and a robust global economy, we saw the 1950s Mackles’ homes being replaced by a large wave of new construction, mansions with room for big families, larger floor plans and high-end finishes, tearing down decades-old homes. Although this led to an over-supplied market and peak prices in 2015, the current market in 2020 is looking a lot healthier and is gaining much more traction from buyers.

Key Biscayne Homes for Sale on Dry Lots

The new construction frenzy of the early 2010’s transformed many original Mackle homes, selling for under $1M, into $2M, $3M, and even $4M new construction homes, leading to the 2015-2016 supply glut and pricing peak. 2018 Registered a sales volume rebound of 55 dry lot sales, followed by a significant decrease to only 32 sales in 2019, similar to the 2016/ 2017 depressed levels and pre-2010 standard sales volume.

2020 is off to a superbly strong start, consistent with Single Family Home sales across Miami-Dade and key luxury markets across the US. The market registered 33 dry lot home sales during the first seven months of 2020, marking an annualized sales volume in excess of the 55 homes sold in 2018 and consistent with the peak volume years of 2010-2015. With 60 dry lot homes currently on the market, current inventory is 13 months. This means it would take 13 months for the market to absorb all available inventory if no new listings were to enter the market. This is a good sign and signals a neutral to light buyers-market. Buyers still have a good selection across three different product tiers; on the lower end, a few redone Mackle houses built in the 50s and 60s with asking prices under $2M, larger homes built in the last two decades in regular size lots, priced between $2M $3M and Homes in larger lots in the $4M price point.

In 2019 Dry Lot homes in Key Biscayne got on average 8% discount from their last listing price and 15% from their original listing price. So far in 2020, we observe higher discounts from listing price (10%) and original listing price (16%), which likely played a role in boosting sales volume during 2020.

280 Cranwood Dr sold after being on the market for 35 days. This property was listed for $4,400,000 and sold for $3,940,000 ($774 per SF) a 10% discount on its asking price.

270 Greenwood Dr sold for $3,120,000 after several price changes. Originally listed for $3,750,000 its last listing price was $3,350,000.00.  That is 17% discount on the original listing price and 7% off its last listing price.

Key Biscayne Waterfront Homes for Sale

2018 And 2019 registered 6 waterfront home sales each year, with asking prices higher than the market could bear and thus listings with many months, even years sitting in the market. In 2020, we’ve already registered 9 sales, almost triple the prior year sales volume, and consistent with Single Family Home luxury market trends across Miami-Dade. At this pace we still have 23-month inventory, or the number of months required to sell current homes for sale. A high number that positions this as a buyers-market, which means that buyers have many options to choose from across 27 incredible homes featuring fabulous locations, including ‘boater’s dream come true’ homes on prestigious Mashta Island, facing Hurricane Harbor or open bay homes with phenomenal Miami skyline views in prestigious Harbor Drive.

With 4 additional sales contracts signed in the past weeks, the market has quickly evolved from a strong buyers-market into one that can easily become neutral given recent trends.

During 2019, waterfront home sales registered 10% discount over listing price and 16% discount over original price. Listing price discounts have held steady at 10%, so far in 2020, while listings over original price have increased to 20%, likely driving the sales surge we’ve witnessed during COVID-19.

460 Mashta Dr was listed by the David Siddons Group for $15.5M. The property is currently under pending sales after receiving 2 offers in the first four days of being on the market

750 Mashta Dr has been on and off the market for almost 3 years with several price reductions. It started at $12,950,000.00 and was eventually reduced to $7,495,000. It sold $6.6M or $1,106 per SF.