Let's start with year 2015. This year was one of the best years for the luxury real estate market in Miami Beach, ever! There were a total of 10 closed sales over $10M and 33 closed sales with selling price between $5M-$10M. The average selling price on the over $10M sales was $1816 per square foot. This was the year that Miami Beach saw its all-time record-breaking sale at $33M for 5800 N Bay Road. The home sold for $3,065 per square foot - the highest dollar per square foot for a single-family home, ever! 5800 N Bay Road is one of the most incredible waterfront estates in Miami Beach, sited on a 52,881-square foot lot with 200 feet of wide Bayfront and spectacular Miami skyline views. We represented the seller in this transaction, and this year alone we sold nearly $200M worth of luxury real estate.
Year 2016, however, showed to be more challenging. This year the luxury real estate market in Miami Beach was impacted negatively mainly by two factors; one, the strong dollar against international currency and two, the US elections in full swing. The strong US dollar affected mostly the buying power of the international buyer, which in turn caused weakness in our real estate market. Because of the strong US dollar and the weak global economy, most of the international buyers were apprehensive to invest in luxury real estate. Domestic buyers on the other hand, were also choosing to rent instead of buy due to the uncertainty that was caused by one of the mostly highly controversial US elections. It is usually the case in most election years that domestic buyers of big ticket items such as homes and cars, tend to slow down a bit, but this election was quite special and not in a positive way for the high end real estate market. However, the market saw a pop right after the election and the activity increased dramatically. This year there were fewer homes sold, 8 closed sales over $10M, and the average selling price per square foot of these 8 sales was a bit lower, $1,614 per square foot. In the price range of $5-$10M, there were 27 closed sales. This year we sold nearly $120M worth of luxury homes and condos on Miami Beach.
And here we are now, in 2017. This year started strong with 4 closed sales in the price range of $5-$10M, and already 5 closed sales over $10M. Two out of the 5 sales over $10M sold for over $20M. WOW! The average selling price for the over $10M sales so far is $1,877 per square foot. This year, the Venetian Islands saw their first sale of over $20M - and by far highest sale ever - with the sale of 212 W Dilido Drive selling at $22M, or nearly $1900 per square foot. We represented the buyer in this transaction. This waterfront home was an absolute modern perfection and exactly what today's buyer is looking for: well-built and designed, move-in ready home, with a prime address and unpreceded waterfront views! Great year so far, and we sure hope it continue to be this way.
That being said, we cannot ignore the fact that inventory levels affect the overall state of the real estate market. Another reason why 2016 showed to be challenging for the luxury real estate market in Miami Beach was the dramatic increase in inventory levels at prices that may not be realistic in today's market environment. Although inventory levels have started to flatten and asking prices are being readjusted, inventory levels are still high compared to previous years and it may take some time for this inventory to burn off and for the market to stabilize.Click Here to see Facts & Trends Reports for Miami Beach waterfront, single-family homes, over $1M, in the last 15 months.
We hope you find our market overview helpful and now have better and more precise outlook on the Miami Beach luxury real estate market. If you or any of your friends need a home valuation, please feel free to reach out to us and we will be happy to provide you with the most comprehensive and recent comparables and give you price recommendation. Our goal is to continue with our contribution in establishing Miami Beach as one of the world's most desirable destinations for luxury real estate!
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This information was presented by Top Producing Realtor Nelson Gonzalez and Julijana Rose from THE NELSON GONZALEZ TEAM at EWM Realty International.