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South Beach Condos Market Report June 2013

Here’s our monthly market report compiled from MLS data of all South Beach condos (zip code 33139).

The following charts shows the amount of available / pending condos in May & June as well as sales from the prior months, quarter & year.

As of 6/10/2013 there were 800 condos for sale in South Beach. As you can see this number decreased by approx. 9% from the prior month where there were 873 condos available. The number of pending sales has gone down by more than 15% from 397 in May to 334 in June. Part of this can be attributed to short sales that have been pending for a long time finally closing and being taken out of the equation. Fortunately, we are not seeing a lot of new short sales and / or foreclosures coming on the market, which adds to the ever increasing stability of the South Beach condo market.

As you can see, the amount of sold (closed) condos increased from 139 in April to 147 in June. We’ve started reported the trend of increased or at least stable demand and decreasing inventories since early 2012 and it still continues.

Some figures not shown in the charts: Current list to sales price ratio is 95%, so if you are in the market for a South Beach condo, low ball offers clearly are not getting accepted any longer. Current days on market is 109, in other words the average time it takes to sell a South Beach condo these days is just over 3 months.

The total inventory and the current pace of sales would be sold out in less than 6 months, which is an indication that we are officially in a seller’s market. Right now I see a large discrepancy in pricing of newly listed condos vs. sales prices of recently sold condos. This tells me that sellers might be a bit too “greedy” right now, which should result in a slower pace of sales going forward unless of course they are willing to negotiate more, which would be reflected in a lower list / sales px ratio. We will monitor these trends over the next few months to see which direction the market is headed.

The next chart gives you more details about current pricing.

Average list and sold prices recently sold condos sold increased by a significant margin from April to May, however the discrepancy between the average list price per sqft on condos currently for sale is significantly higher than the prices buyer have recently paid for South Beach condos. Currently active condos are listed at an average of $818/ sqft whereas the average sold price per sqft for condos closed in May was $587. Like I said, it will be interesting to see how this gap will be bridged in the coming months.

If you have any questions reg. these reports or have any other questions, please feel free to contact us at any time:

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South Beach luxury homes

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South Beach luxury homes

If you are looking for south beach luxury homes, there are a few options. None of them are truly in the middle of South Beach, but all are very close (mostly within zip code – 33139 – as South Beach)

The ultimate location for south beach luxury homes is definitely Star Island. Star Island is connected to Miami Beach through the Mac Arthur causeway (I-395) and lies only approx. 1500 ft west of the western Miami Beach shoreline. It is here on Star Island where you can find the most exclusive (and expensive) of south beach luxury homes. Currently there are 5 homes for sale on Star Island ranging from $19,999,999.00 to $35 Million. 5 Star Island luxury homes sold in the past 12 months with sales prices ranging from $7.5 Million (somebody got a steal !) to $25.5 Million. All star island homes are situated on oversized waterfront lots.

Head a stone’s throw west of Star Island and you will find Palm and Hibiscus Islands. Here you will find a wider variety of homes, ranging from still highly exclusive waterfront mansions in the in the 7 figure range to your “average” family homes located on dry lots on the inside of the Islands. The prices for homes sold on Palm and Hibiscus Island in the past 12 months ranged from $575k for a 2600 sqft 4 bd home to over $14 million for an 8 bed / 8.5 baths waterfront mansion featuring 14,000 sqft of living space. As you can see, these Islands have homes for almost every taste and budget.

A little further north you will find the next roadway connecting Miami Beach with the mainland – namely the venetian causeway – and you’ll find yourself passing a a cluster of 6 man made islands. 5 of which are considered the Venetian Islands. Similar to Hibiscus and Palm Islands, the venetian islands have a wide variety of homes from the more modest to true south beach luxury homes featuring wide bay views. Asking prices for venetian island homes currently on the market range from $690k – $14.9 million.

On the northwest end of South Beach, you’ll find somewhat secluded Sunset Islands 1-4. Currently there are 27 south beach luxury homes for sale on Sunset Islands 1-4 with prices ranging from $999k – once again – $14.9 million. Since there is no through traffic, sunset islands are generally quieter and more private than the venetian islands.

Last, but not least is North Bay Rd. Even though most of N Bay Rd is no longer considered part of South Beach, I couldn’t write a post about south beach luxury homes and not mention this area since it is here where you will find some of the most luxurious of Miami Beach homes, especially along the waterfront.

If you wish to receive further details on any of these areas and or it’s homes for sale, please don’t hesitate to contact me using below contact form.

[contact-form subject="South Beach luxury homes" to="info@southbeachcondoagent.com"] [contact-field label="Name" type="name" required="true" /] [contact-field label="Email" type="email" required="true" /] [contact-field label="Comment" type="textarea" required="true" /] [/contact-form]

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Miami condo prices 2012 – Miami Beach

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Miami condo prices 2012 – Miami Beach

Following my recent post about Miami condo prices 2012 – Greater Downtown Area here are some facts about Miami condo prices 2012 for the Miami Beach area.

Let’s look at the average price per sqft for Miami Beach in the past 12 months. It has jumped from $321 to $503, which represents an increase of 57%. Now, even though these are real numbers, they are a bit inflated, by some outliers, like the recent sale of the Setai PH-A for $21,500,000 or roughly $3400 per sqft.

The trend however is clear. Even without record breaking sales on singly trophy properties, sales prices for Miami Beach condos have clearly increased in the past year.

Here are some recent articles where you can see the sales price per sqft for specific buildings in South Beach or even more specifyc the South of Fifth area of south beach.

The same trend is reflected by the median sales price for Miami Beach condos in the past 12 months, which as you can see went from $190k to $250k, reflecting an increase of 32%. By the way, you might think that the median sales price seems kind of low for Miami Beach. This is largely affected by the influx of distressed sales we have seen and the fact that there are less distressed properties on the market now, is one of the reasons why sales prices are finally increasing again.

Last, but not least, I want to show you one more reason why there is a high likelihood that prices for Miami beach condos will continue to increase throughout 2012, which is the current available inventory. Inventory levels of available Miami beach condo have drastically decreased from over 50 months (yes, that’s more than 4 years worth of inventory) in 2007 to 7 months in Feb of 2011 and were down to 5 months in Feb of 2012.

Of course, I can not accurately predict the future, however looking at the recent and current trends, one doesn’t need a phd in economics to figure out where miami condo prices are headed in 2012. I’d say, if you want to buy, do it quick. If you need to sell you might finally be able to achieve a reasonable sales price on your condo again. If you are merely thinking of selling, but are in no rush, I personally would stay put for a while, as I see prices increase further through 2012.

If you have any questions or would like information on buying or selling a Miami Beach condo, please don’t hesitate to contact me.

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South Beach condo prices per sqft

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South Beach Condo prices per sqft

Since price is of course the most important factor when buying or selling real estate I just ran some market stats for the past 12 months (Feb 2011-Feb 2012) for condo sales in 3 different areas:

South Beach (other than South of Fifth)

South of Fifth

Downtown Miami (“greater downtown area”)

The charts below show you the average sold price per sqft for a sampling of different South Beach condo buildingswell as the min / max sold price per sqft. Since the charts show you the minimum / maximum and average price per sqft that was actually paid in the past 12 months, this is a solid guideline of how much you should be paying / receiving when buying or selling a condo in any of these buildings. Of course there are many factors that will impact the price / value of any unit within the buildings, such as location in the building, views, finishes, etc.

As you can see both Mirador Towers have been selling in the low $200′s p. sqft, Floridian and Waverly are hovering right around the mid $300 p. sqft mark and the Decoplage, due it’s location at the end of Lincoln Road and right on the Ocean, commanding slightly more than $400 per sqft.

There are many more buildings in South Beach, however these are some of the most popular and should give you a good indication of the general high rise condo market in South Beach.

As you can see the price ranges per sqft in each of the buildings are quite large, resulting from the vast differences between units in each buildings. “Prime” views & finishes do command a premium while not so desirable lines in the buildings might sell at a discount. While there are very few distressed condos in these buildings, the few that have been there also tend to be on the lower end of the price and desirability spectrum.

Interested in buying or selling a condo in any of these buildings ?

Talk to Tom (305) 482-1688 or fill out below contact form and I will get back to you asap !

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South of Fifth condo prices per sqft

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South of Fifth Condo prices per sqft

Since price is of course the most important factor when buying or selling real estate I just ran some market stats for the past 12 months (Feb 2011-Feb 2012) for condo sales in 3 different areas:

South of Fifth (Miami Beach)

South Beach (other than South of Fifth)

“Greater Downtown Area” – will be posted in the next few days

The charts below show you the average sold price per sqft in the South of Fifth area of South Beach for 6 of the most popular buildings in the area as well as the min / max sold price per sqft. Since the charts show you the minimum / maximum and average price per sqft that was actually paid in the past 12 months, this is a solid guideline of how much you should be paying / receiving when buying or selling a condo in any of these buildings. Of course there are many factors that will impact the price / value of any unit within the buildings, such as location in the building, views, finishes, etc.

As you can see Murano Grande, Icon and Portofino Towers are hovering right around $600 p. sqft as an average sales price, with both Continuum Towers commanding more than $1100 per sqft and Apogee – not surprisingly – eclipsing all other South of Fifth buildings at almost $1800 per sqft.

It’ll be interesting to see how Ocean House will fall into the mix, even though it is a boutique buildings, that can’t really be compared to any of the above buildings.

Interested in buying or selling a condo in any of the buildings ?

Talk to Tom (305) 482-1688 or fill out below contact form and I will get back to you asap !

[contact-form subject="South of Fifth condo prices per sqft" to="info@southbeachcondoagent.com"] [contact-field label="Email" type="email" required="true" /] [contact-field label="Name" type="name" required="true" /] [contact-field label="I am interested in " type="radio" required="true" options="Buying a condo,Selling a condo" /] [contact-field label="Phone# (not required)" type="text" /] [/contact-form]

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How to sell your South Beach condo faster and get more money for it

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If you are planning on selling your south beach condo, chances are you would like to sell it as fast as possible and for the most money possible.

The easiest way to succeed in doing so it by pricing your property right from the get go. Most sellers seem to think that overpricing is a good strategy as they will then be able to negotiate and still get the money the want or money. Unfortunately the days where this strategy worked are long gone and buyers that blindly overpay for properties have gone extinct.

So how would pricing your South Beach condo right at or below market value yield you more money ?

Check out below table. As you can see, properties that sold within 30 days of being listed, sold for an average of 101.35% of the list price. Yes, you are reading this correctly. These are south beach condos that are actually selling for more than the list price (read this article for more detailed explanation on this phenomenon)

Once you get past the 30 day mark, the sales price to list price ratio drops to somewhere in the 93-94% range and it further declines to 90% after 120 days.

Source: South Florida MLS

If you are planning on selling your south beach condo, chances are you would like to sell it as fast as possible and for the most money possible.

So how would pricing your South Beach condo right at or below market value yield you more money ?

Once you get past the 30 day mark, the sales price to list price ratio drops to somewhere in the 93-94% range and it further declines to 90% after 120 days.

If you wonder why this is happening, it’s actually pretty simple.

When you list your South Beach condo for sale, it gets the most exposure within the first 1-2 weeks of being entered in the MLS. If it’s priced right, all agents working the area will present it to they buyers and urge them to make an offer quickly since the property is priced well and will most likely move quickly. They will also advise them to make an offer at or above list price since that’s what the property is worth and there is no chance of winning the bid in a multiple offer situation if you are coming in with a lowball offer.

Let’s look at the other scenario. Your property started out as priced above market. Most agents will skip it and show properties that are priced right first. It sits on the market for months, most likely going through several price reductions in an effort to attract an offer.

When you finally get somebody to take notice, they will look at the history and see that the property started out as being priced too high and has been reduced several times our several months.To real estate agents in South Beach, this will give the impression that you are probably not a very motivated seller, therefore they will not be presenting your property to as many buyers as they could, however if they do happen to find an interested buyer, the buyer will likely think that you as the seller are probably desperate by now and will therefore be more open to lower offers.

Either way you are doing yourself a disservice by getting less exposure, thus attracting less offers and lower offers. I know it’s not what a seller likes to hear, but if you are serious about selling your South Beach condo, anything but pricing it right at market price would be foolish. And you if are not serious about selling it, why would you list it anyway. After all it’s a waste of everybody’s time and we all know (or at least firmly believe) that you will get more money for your South Beach condo if you can wait a few year before selling it.

Now is not the time to hope for a miracle when selling your South Beach condo, however if you are serious and realistic about pricing, you will sell it. For more money. And quickly too !

To sell your South Beach condo with us just get a free valuation of your property, please fill in the form below

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Miami Beach condos – market update

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There is a common misconception about Miami Beach condos, which is that all the units for sale are either short sales or foreclosures (bank owned).

The reality however might actually surprise you. Only 19% of all miami beach condos for sale (as of today) are either so called distressed properties with 3% being bank owned and 16% being short sales.

When you look at the number of Miami Beach condos that are actually selling however the story is a different one. Last month 36% of all miami beach condos that sold were bank owned foreclosures and 20% were short sales. That means that a total of 56% of all condos sold in Miami Beach last month where distressed properties and 44% were “regular” sales.

What does that mean for me ?

If you are a buyer it means that you have a 56% change of either having to deal with the extremely competitive market of foreclosed miami beach condos or having to be patient enough to go through the lengthy process of a short sale.

If you happen to be trying to sell your miami beach condo, it means that more than half of your competition consists of distressed properties (read: highly motivated sellers) and therefore pricing is everything. Unless you happen to own one of a handful of miami beach trophy properties your chances of selling an overpriced miami beach condo are pretty much zero these days. If you have a property that has been sitting on the market and not attracted any offers or even showing for more than 3 months, do yourself (and the rest of the market) a favor by either adjusting your pricing or taking your property off the market until the time is right for you to sell.

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Miami Beach condos – a buyers market or is it ?

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I’m sure that you would agree with the general consensus that the real estate market for Miami Beach condos is currently (and has been for a while) a buyer’s market, right ?

Well, you might want to re-think this notion. While the general parameters defining a buyer’s market (supply > demand) are definitely there, most of the Miami Beach condos that are actually selling these days are distressed properties like short sales and foreclosures (bank owned properties). As you can see from the research we did a few months ago, most of the condos selling in Miami Beach these days are in the below $150k price range, which means that most of these miami beach condos were distressed sales.

When it comes to getting a great deal on a distressed Miami Beach condo, keep in mind that the rules of the game change drastically.

a) you are not dealing with a “live person” as a seller, but more likely with an employee at a bank of loan servicing company, who neither knows the property, nor cares about anybody’s intentions, motivation, etc, but
rather just looks at hard, cold numbers to determine the price they will accept.

b) sometimes the prices that a lender will accept are based on appraisals or opinions of value that might be off. This can work in your favor or against you.

c) You want a deal, don’t you ? Of course you do. Unfortunately it’s not only you, but you and everybody else.
That actually means that when it comes to the best deals out there, it is a seller’s market.
Well priced bank owned South Beach condos more often than not will receive multiple offers within a matter of days and end up selling above list price. Short sales on the other hand, will generally sell somewhere close to market value, with the list price having no bearing whatsoever on the price the lender will accept for the unit.

What does that mean for me as a buyer ?

Since most bank owned South Beach condos sell for close to list price or even above list price and receive multiple offers it is important to put your best offer in immediately. If seen it happen countless times that somebody lost a good deal, because the got too greedy and demanded an unrealistic price. Now I know that seeing is believing, so here’s chart showing some South Beach condos that sold last month with the list price, selling price and closing date. These Miami Beach condos were all bank owned.

Bank owned condos sold 12/2010

If the list price is not a good indication of the sales price, how do I know how much to offer ?

This is where your real estate agent comes into play. He or she should be able to conduct a comparable market analysis showing the recent comparable sales and giving you a recommendation on the offer price that offers the best balance between having the best shot at obtaining the South Beach condo you like and not overpaying for it.

I don’t trust my agent’s opinion…

Well, in that case there’s only one solution. Find an agent that you do trust or start making offers on your own. I honestly don’t see why anybody would want to work with a real estate agent if they do not trust their judgement and the information they can obtain for them. After all, that’s the reason you decided to hire a professional realtor to begin with, isn’t it ?

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Miami Beach home prices increase

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According to Zillow, home prices in Miami Beach have been increasing slightly since hitting the bottom in May 2010. This is a good indicator that the time if right to buy your Miami Beach condo.

Miami Beach Zillow Home Value Index

Miami Beach Home Values – Interactive chart

Click on the chart for a more detailed view

Another chart, I would like to share with you is the Miami Beach price index over the past 10 years. As you can see, even after the boom and bust of the early – mid 2000′s, Miami Beach condos were solid investments increasing in value by an average of 50% over the past 10 years.

Miami Beach Zillow Home Value Index

Miami Beach Home Values – Interactive chart

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South Beach condos – sales by price range

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If you’ve seen my post on the July 2010 condo stats, you know that in July of 2010 there were 78 condos sold in South Beach.

Below graph will show you the distribution by price range:

…and here’s a look at the average price per sqft that is achieved in each of these price ranges:

If you are wondering what to do with this information, well, really nothing, I just like running numbers for the sake of running numbers.

Ok, seriously, you can of course use these numbers as a guideline if you are a buyer of seller of a miami beach condo or more specifically a south beach condo, however please do use them as a guideline only as there are still major fluctuations within each price range, e.g. even though the avg. price per sqft in the 1MM+ range was almost $800, the lowest sales price per sqft in this range was $497 and the highest was $1288.

Any realtor with a market knowledge of South Beach will be able to help you determine the right selling price (or purchase price) for your Miami Beach condo.

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South Beach Condos Market Report June 2013