Year 2017 has shaped up to be an interesting year for the luxury real estate market in Miami Beach, and all of South Florida for that matter. There was a positive factor that created some movement and excitement, and a negative factor which caused a bit of fear and uncertainty.
The positive factor that influenced the increase of sales in 2017 was the fact that we were post-election and many of the domestic and international buyers that were waiting for the outcome of the election in 2016 are now actively searching again. When reflecting on the ultra-luxury real estate market, so far in 2017 Miami Beach has recorded 3 remarkable high-end sales of $20M+ which constitutes to a 300% increase in closed sales when compared to 2016 when Miami Beach had no sales of $20M+. In the price range of $10M-$20M, Miami Beach stayed consistent with 8 closed sales in 2016 and 8 closed sales so far in 2017. The Nelson Gonzalez Team closed on 2 of the 3 sales of $20M+ in the first quarter of 2017 and 1 sale at $14M in August of 2017.
The negative factor that caused a temporary slow-down in the market is a factor that is very specific to our Sunshine State – hurricane season! The effects of Hurricane Irma in September of 2017 were felt throughout the entire region. Although, South-East Florida and Miami Beach were spared from a direct impact there was still damage to properties, mostly landscaping, which in turn affected asking prices, delayed homes from being listed on the market, and affected the fate of some actual contracts.
Taking an overall look at the over $1M single-family home market in Miami Beach, data from Facts & Trends Reports shows that after the initial drastic increase of inventory levels in the second half of 2015, in 2016 inventory levels began to level-off and remained stable throughout 2016 and 2017. The closed sales have stayed consistent as well. Furthermore, when compared to 2016 in 2017 there was a slight decline in the average price per square-foot, an increase in the average days on the market, and last but not least, some fluctuation in the months of inventory. We feel that demand for homes in Miami Beach will continue to increase as land is scarce and buyers are starting to see more value than in condos. Click here to request these Facts & Trends Reports.
In the over $1M condo market in Miami Beach, data shows continuous increase in inventory levels in 2016, but then some drastic fluctuations in 2017. In addition, there was a slight increase in the days on the market and some fluctuation in the months of inventory. This is a result from all the new construction condo units being delivered and listed on the market. These trends will most likely persist in 2018, and we may continue to see further price adjustments. When compared to 2016, the closed sales in 2017 seem to have stayed fairly consistent. The luxury condos in Miami Beach offer different advantages than the single-family homes. Therefore, Miami Beach will continue to have a strong demand for luxury condos for second-home buyers as it offers great conveniences, beautiful views, and many luxury amenities.
With all that said, year 2017 is not over and we have yet to see how it will end.
This market overview was provided by Nelson Gonzalez and Julijana Rose from THE NELSON GONZALEZ TEAM at EWM Realty International. For any questions regarding this market overview, please email Nelson@NelsonGonzalez.com or Julijana@NelsonGonzalez.com