The Key Biscayne Condo Report and Market Analysis | For July 2016
The Key Biscayne Condo Report | Condos for sale in Key Biscayne
The 12 mile long private island of Key Biscayne is considered one of the most exclusive areas in Miami and has one of the highest incomes per capita in the United States. For families the most attractive aspects are the island’s safety (police control), the presence of one of the best public schools in the USA, and the high-end quality of life and social scene. Other advantages are the great beaches, national parks and golf courses as well as the proximity to the Financial District in Brickell, Coconut Grove and even Miami Beach.
As Key Biscayne Homes start selling at a little below the $2M mark, the Key Biscayne condos are a great alternative for those who want to live on the island without the budget for a Key Biscayne home. There are very few new projects in Key Biscayne (Oceana Key Biscayne is the only luxury condo built in the last 14 years),which does not take away from their allure. Many of the units have been updated and their oceanfront location on this superb island cannot be compared.
The Key Biscayne Condo Report – Inventory levels in 2015 – 2016
Inventory levels of Key Biscayne condos show high numbers. The lower end of the market still showed a neutral market in quarter 3 of 2015 but continued into a buyer’s market. The $2M+ market shows the highest levels of inventory with a peak at 65 months. It needs to be said that luxury markets generally show a higher level of inventory as the demand is more limited.
Rule of Thumb
- Below 6 months of inventory: More demand than supply, creating a seller’s market
- Between 6 and 9 months of inventory: A neutral market with a balanced relation between supply and demand
- More than 9 months of inventory: More supply than demand, creating a buyer’s market
The Lowest, Average and Highest Sales Prices per Sq.Ft in Key Biscayne
Below you see the graph that compares the average of the 10 lowest sales prices per Sq.Ft, the overall sales price per Sq.Ft and the average of the 10 highest sales prices per Sq.Ft.
Key Biscayne lower-end of the market saw steady price levels in the last year with a small peak in Q4 2015 and Q1 2016. The luxury market has cooled down a little bit in the last year. This is no surprise as we have seen this trend in all of Miami. Buyers are more price conscious and the market peak has passed.
The Key Biscayne Condo Report | The Average Sales Prices per Sq.Ft for the different price ranges
Below you can see what condos of different price ranges are selling for per Sq.Ft.
The Key Biscayne Condo market seemed to have remained stable in the last year. Despite a peak or a small dip in some months the average price levels remained stable. A possible reason for this might be that Key Biscayne is one of the few markets in which only 2 new condos were introduced. The market did not get oversupplied as many other Miami condo markets which kept the market equilibrium.
The Key Biscayne Condo Report – The Average Sales Prices per Sq.Ft over the last 4 years
Looking at the general growth of the market over the last years (made easier for the eye with the help of trend lines*) we see increasing condo prices in Key Biscayne. The $500K to $1M market increased from the lower $400s per SF to the mid $500s per SF. The $1M to $2M market saw an increase from $600 to $800 per SF. The most impressive rise in prices was seen in the luxury range of the market from $800 to almost $1,200 per SF.
*Especially in the luxury segment of the market prices might differentiate substantially from month to months due to limited sales or a sporadic sale of a property with features that are driving prices up (eg a private beach). Using automatically generated trend lines offers the reader a better idea of where the market is heading.