The Miami Beach Condo Market Update for September 2022
Welcome to our 90-Day Miami Beach Condo Market Update. The Miami Beach Condo Market is experiencing a tremendous increase in inventory. The data for the past three months show the supply climbing to 3 to 4 times more than it was in the previous three months.
Looking at the statistics page for this neighborhood (Miami Beach, South Beach, South of Fifth) will reveal the specific sales from the last 90 days. As a registered user on the site, you can go back further than 90 days. Browse the specific sales and observe what is transacting at the highest price per sqft and why. For a granular analysis of a property you are interested in selling (or buying), please call me and we can plug your subject property into the stack to see how it compares. This is an advanced one step further feature, that is not part of the website’s front-end capability, but a highly advantageous tool to assess real-time property values.
What is happening?
The entry-level for Miami Beach, between $1M and $3M is still dynamic, with the months of inventory under nine months. The price bracket between $3M and $5M seems to be experiencing a slowdown. With 60% more properties listed in the last 90 days and 60% fewer closed sales, compared to the previous three months – from April through June this year. The months of supply are now 20 months, which is 700% higher than what it used to be just seven months ago.
Condos priced above $5M are in a similar shape. There are 17 months of inventory in the higher-end of the market. This number will likely come up, considering several more listings will pop up in the high season.
Why is this Happening?
Sellers are listing their properties for the same prices as six months ago. As a result, listing prices do not reflect the current market. On the other hand, buyers are not rushed and are waiting to see the effect of this increased supply. We anticipate this market has shifted in the buyers’ favor, and more opportunities are available now in comparison to just six months ago.
Due to the seasonality of the Miami Beach market, we certainly expect the number of closed transactions to increase in the next six months. However, we also anticipate inventory to keep rising, as many sellers wait to list their properties when the buyers are in town. We can state that the Miami Beach condo market has peaked already and that prices will adjust during the next six months.
Advice for BUYERS
When calculating the value of a unit, particularly in older condos, the premium of updated units with high-end finishes does not translate into the pure value of labor and materials. The premium is the value of labor, materials but also time and effort saved.
Advice for SELLERS
Sellers should consider that many prospective buyers are on the fence at this stage due to the uncertainties, and the high-interest rates. When you have a prospective buyer engaging in an offer, make sure to keep them at the negotiation table.
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!
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