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.
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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.