Following up on yesterday’s post, here’s a little more insight on how prices of South Beach condos have developed from 2006 to date.
The average sold px has actually increased every year from 2006-2008 and then dropped drastically in 2009. Now keep in mind that is the average of all condos sold in South Beach per year, so an increase of the average doesn’t mean that prices have gone up. It probably means that less of the lower priced sold and therefore the higher priced condos are weighing in more, thus increasing the average.
Prices per sqft in the same time frame have actually fallen every year from an average sales price per sqft of $524 in 2006 to $370 in 2009 (year-to-date). This represents a 29% decline, which as an average sounds realistic. Of course there are plenty of units whose prices have dropped 50% or more from the highs in 2005/2006.
The chart is right in line with what we are seeing out in the market these days, which is brisk sales in the below $200k range. Out of the 822 units sold ytd, 311 (38%) have been in the price range of up to 200k.
The amount of sold units in the ultra luxury segment ($5 mio. plus) has gone up from only 2 in 2006, 5 in 2007 & 5 in 2008 to 7 so far this year. The reason I’m looking at these units is that even though in terms of unit sales they represent less than 1% of all sales, their $ volume ( 2009 ytd) represents 11% of the total sales volume for South Beach condos and therefore this segment has a significant impact on the market stats.
Sales in the $1-5 mio. range have been fairly steady from 2006 through 2008, but declined by 30% in 2009.