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Tags:  Miami Real Estate Market Overview



In this overview on the luxury real estate market we wanted to give you a brief update on the ultra-high-end luxury real estate market in Miami Dade County; how it all began and where we are now. The price range that we will consider for this ultra-high-end market segment is $20M and over.

Miami wasn't always the destination for luxury buyers for ultra-high-end real estate. Up until recent years, Miami did not have this type of luxury real estate product available. It all started in 2004 when wealthy buyers from around the world started to target Miami's waterfront mansions due to Florida's tax benefits and the lifestyle that Miami Beach offered.

Year 2006 is the year when the Miami Beach area saw its first closed sale over $20M with the sale of 12 Indian Creek Island Road for $22.5M, in which Nelson Gonzalez represented the Buyer. The first sale for Miami Dade County over $20M was 2 years earlier in 2004 with the sale of 1 Arvida Parkway at $20.6M. In the time from 2004 to 2012 Miami Dade recorded a total of 6 sales over $20M which amounts to an average of 1 sale over $20M each year. Starting in year 2012 this number tripled and from 2012 until present Miami Dade has been recording an average of 3 sales over $20M per year. The total number of sold single-family waterfront homes over $20M for Miami Dade County so far is 27. Nelson Gonzalez has personally sold 8 of the 27 homes closed over $20M. Throughout the years, the inventory levels for this market segment have been slowly increasing, but increasing at a higher rate than demand. In 2017 inventory levels for this market show an increase of nearly 300% compared to 9 years ago. The silver lining is that demand for high end real estate and the number of sold luxury homes has also been increasing. Year 2017 started off great for this market segment with already 3 closed sales of $20M+, in which Nelson Gonzalez represented the buyer in 2 of the sales. As of June 2017, in Miami Dade there are 31 single-family waterfront homes for sale with an asking price of $20M+. Although demand and sales have increased, inventory levels for this type of luxury real estate are still high for such a small market segment and it may take some time before that inventory burns off and the real estate market stabilizes.

Scroll below to see all the sales of over $20M in which Top Producing Realtor Nelson Gonzalez has represented the Buyer, Seller, or both, including Nelson’s Record-Breaking sales! CLICK HERE to see the Facts & Trends Report and see how inventory levels for this luxury real estate market segment has changed in the last 10 years, quarterly.

RECORD-BREAKING SALE FOR MIAMI BEACH AND NORTH BAY ROAD

5800 North Bay Road | Sold: $33,000,000 | 2015

RECORD-BREAKING SALE FOR VENETIAN ISLANDS

212 W Di Lido Drive | Sold: $22,000,000 | 2017

RECORD-BREAKING SALE FOR COCONUT GROVE

La Brisa Estate | 3551 Main Hwy | Sold: $34,600,000 | 2016

HIGHEST SALE FOR NORTH BAY ROAD IN 2 YEARS

6466 North Bay Road | Sold: $20,000,000 | 2017

HIGHEST SALE FOR INDIAN CREEK VILLAGE IN 5 YEARS

17 Indian Creek Island Rd | Sold: $30,000,000 | 2015

OTHER SALES OVER $20M FOR NELSON GONZALEZ

12 Indian Creek Island Rd | Sold: $28,000,000 | 2014

12 Indian Creek Island Rd | Sold: $22,500,000 | 2006

2068 North Bay Rd | Sold: $20,500,000 | 2014

This overview was presented by Miami’s Top Realtor Nelson Gonzalez and Julijana Rose from THE NELSON GONZALEZ TEAM at EWM Realty. If you need help buying or selling your waterfront home or a condo contact us.



 

Tags:  Miami Real Estate Market Overview



Below is a brief update on the condo market in Miami Beach in the last 3 years, in 3 different price ranges. We have included 3 Facts & Trends reports, which we will discuss in length.

The first graph (CLICK HERE TO VIEW GRAPHS) shows number of condos For Sale vs. Sold vs. Pended in Miami Beach in the price range of $1M-$5M, from March 2014 through March 2017. Inventory levels in this market segment started slowly increasing by the end of 2014, and by the beginning of 2016 the inventory levels had doubled. The number of condos for sale in this price range in March 2014 was 314, while in March 2017 this number was 640. This is the highest inventory levels for condos in this market segment, ever. has ever been. Sold condos in March 2017 were up by 20% compared to March 2016 and March 2015, and 25% down compared to March 2014. While months of inventory in March 2017 based on closed sales was 26.7 - almost triple compared to March 2014 when months of inventory was only 10.5, but lower from March 2016 when months of inventory was 30.5. For the Miami Dade condo market, months of inventory in a balanced market is somewhere between 6-9 months. For the 1 million-and-over condo market months of inventory in a balanced market is between 12-18 months, and for the $3M-$5M price range market months of inventory is between 15-21 months. This number goes a bit higher for the highest end of the market.

The second graph (CLICK HERE TO VIEW) shows number of condos For Sale vs. Sold vs. Pended in Miami Beach in the price range of $5M-$10M from March 2014 through March 2017. The number of condos for sale in Miami Beach for this price range in March 2014 was 50. Since then, inventory levels have been slowly, but consistently increasing reaching a number 96 in March 2017 - 26.3% higher compared to March 2016, nearly 30% higher than March in 2015, and almost 100% higher than in March 2014. On a positive side, Sold condos in March 2017 were up by 150% compared to March 2016. This dramatic increase in sales in March 2017 is in part due to the increase in activity that Miami Beach saw right after the US elections. Months of inventory based on closed sales in March 2014 was 25, while months of inventory in March 2017 was 19.5. This slight decrease in months of inventory compared to 2014 is a positive change, but significantly positive change when compared to the months of inventory in February 2017 when it was 85 months of inventory.

The third graph (CLICK HERE TO VIEW) shows number of condos For Sale vs. Sold vs. Pended in Miami Beach, priced over $10M from March 2014 until March 2017. Inventory levels for this market market segment already started to increase in 2014, but showed dramatic increase in the last quarter of 2015, and reached a record in March 2016. The number of luxury condos for sale in Miami Beach priced over $10M in March 2017 was 41 units - 2.4% decrease from March 2016, nearly 50% increase compared to March 2015, and 100% increase compared to March 2014. In March 2017, there were 0 Sold condos, while in March 2016, March 2015, and March 2014 there was 1 Sold unit for each. Months of inventory in this price range was 41 for March 2017, 42 for March 2016, 28 for March 2015, and 21 for March 2014, concluding that months of inventory in March 2017 is double compared to months of inventory for 2014.

The numbers for the condo market over $1M for Miami Dade County are no different. With inventory levels up by 19% and sales down by 22% year-over-year, it is clear to see why the 1 million-and-over condo market is experiencing the biggest challenges. However, even with the difficulties that the condo market has been experiencing in the last few years, sales are still happening. In the time period discussed above, there were over 600 closed sales in the MLS for the 1 million-and-over condo market in Miami Beach.

From our experience, when listing your home on the market for sale it is extremely important to price it correctly. The price of the home will directly impact the number of buyers that will consider your home, thus increase the opportunity to sell. In a buyer's market, as we are in today, the initial asking price is a crucial component in attracting a willing and ready buyer.

CLICK HERE to read our UPDATE on the Single-Family Homes Market in Miami Beach.

If you would like to hear from us regularly, please CLICK HERE to subscribe to our newsletter and stay updated with the latest news and trends in the luxury real estate market in Miami Beach.

This market update on the Miami Beach luxury condo market was presented by top producing realtor Nelson Gonzalez and Julijana Rose from The Nelson Gonzalez Team, at EWM Realty International.



 

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