The Miami Beach Condo Report and Market Analysis | For July 2016
The Miami Beach Condo Report | Condos for sale in Miami Beach
Miami Beach, known for its beaches, nightlife and restaurants, is what everyone thinks about when Miami is mentioned.
For this real estate report we analyze Miami Beach as the area North of Dade Blvd (Just south of the Miami Beach Golf Club) all the way up North to 88th street where it borders with Surfside.
Miami Beach offers a wide range of luxury condos of which the most luxurious ones are overlooking the beautiful blue waters of the Atlantic Ocean. Miami Beach condos vary from the slightly more dated condos to brand new luxury projects right on the ocean such as Eighty Seven Park and L’Atelier.
The Miami Beach Condo Report – Inventory levels in 2015 – 2016
Inventory levels of Miami Beach condos are showing high numbers. All markets are experiencing a buyer’s market with the luxury market showing the highest inventory levels, peaking at 108 months at the beginning of this year. It needs to be said that luxury markets generally show a higher level of inventory as the demand is 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 Miami Beach
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.
Miami Beach condos saw steady price levels in the markets below the $2M mark. The Miami Beach luxury condo market experienced a sharp price decline. This is no surprise as we have seen this trend in all of Miami. Buyers are more price conscious and the market saw its hottest moment in the summer of 2015. In 2016 properties simply didn’t sell for these record prices anymore.
The Miami Beach 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 2M + Miami Beach condo market saw steady prices within the lower-end of the market (The $500K to $2M market). As mentioned before, the luxury markets in all of Miami saw price adjustments as today’s buyers are more price conscious than a year ago. As can be seen from the graph below the same goes for the Miami Beach luxury condo market which saw a considerate price decrease.
The Miami Beach 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 Miami Beach. Although the luxury market is currently cooling down, it saw the highest price increases in the last 4 years. The market of $500K to $1M dollar condos saw the smallest increase in prices.
*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.