The South Beach Real Estate Report and Market Analysis | For July 2016
The South Beach Real Estate Report | Homes for Sale in South Beach
South Beach is the Southern part of Miami Beach. The area reaches from Dade Boulevard in the North all the way to South of Fifth, including the Venetian Islands and the islands of Hibiscus, Palm and Star Island.
South Beach is known for its sizzling nightlife, restaurants and beautiful beaches. The South Beach islands however are very secluded and peaceful enclaves with many luxurious waterfront homes that provide for superb waterviews.
The South Beach Real Estate Report – Inventory levels in 2015 – 2016
Inventory levels of South Beach real estate show high numbers. The entire market is experiencing a buyer’s market with the luxury market showing the highest levels of inventory.
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 South Beach
Below you see the graph that compares the average of the 5 lowest sales prices per Sq.Ft, the overall sales price per Sq.Ft and the average of the 5 highest sales prices per Sq.Ft.
South Beach homes saw their average sales prices decrease over the last year but also its lowest and highest levels of sales prices saw a sharp decline. In 2016, we haven’t seen the peak prices of 2015 anymore as many buyers became more price conscious.
South Beach Real Estate Report | The Average Sales Prices per Sq.Ft for the different price ranges
Below you can see what homes of different price ranges are selling for per Sq.Ft.
South Beach luxury properties saw large price fluctuations although it seems the market remained steady over all. The lower-end of the market saw a sharp price decline while the $2-$5M market didn’t have enough sales to make valid conclusions.
The South Beach Real Estate 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 prices in South Beach. All South Beach properties have seen considerable price increases, yet the ultra-luxury market of $5M + properties saw the largest increase with average prices rising from $1,000 per SF to more than $1,500 per SF. This is a 50%+ increase.
*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.