2016 Miami Beach Real Estate Overview

2016 was a year with dips and up swings for the average sale price of single family homes and condos in the Miami Beach Real Estate Market.  Overall these changes in the market kept closed sale prices fairly consistent when looking at 2016 as a whole.  Many factors contributed to these changes such as fluctuation in foreign currency values v.s. the U.S. dollar, low housing inventory, and overpricing of available units.  These fluctuations can clearly be seen when looking at the graphs below.  While the median sales price remained fairly consistent throughout the year, the average sales price saw variations from $1,025,000 to $700,000.  These numbers are also influenced by the different types of houses and condos being sold on during any given month and some fluctuation is perfectly normal.  It is also important to look at the average sales price over the past 5 years.  It is clear that owning real estate in Miami Beach is a solid investment that will appreciate over time if you are looking to hold your property for 5 plus years.

When looking at Miami Beach’s 2016 sales as a whole, it doesn’t appear that the average property saw any appreciation in value over the year.  However, on the contrary, many units saw an average of a 2%-4% appreciation in property value from the beginning to the end of the year, which is right on par with the national appreciation at 3%.  This indicates a fairly heathy and steady Miami Beach Real Estate market.

It would be reasonable to expect a small amount of appreciation of Miami Beach property values during 2017, but would also not be surprising to see a small depreciation in value as well.  There are a few factors that play into this.  One, is there are still many new construction projects scheduled to be open this year in 2017 which will lead to a surplus in inventory.  While there are a few new construction projects happening in Miami Beach, the vast majority of them are in Brickell, downtown, and the edgewater neighborhoods.  Even though most of these projects are not in Miami Beach, they can still have an impact on the overall market values, which include Miami Beach, given their close proximity.  Another factor that continues to plague the Miami Beach area, is overpricing of units.  It is understandable that all sellers want to turn as much of a profit as possible when selling their home.  But, sellers must also be realistic when looking at comparable closed sales in determining the proper sales price of their home.

If you are looking to buy or sell in 2017, or would like more real estate advice or statistics, you are always welcome to call, email or text me to discuss.  I have been specializing in the Miami Beach residential real estate market for the past 8 years, and would love to help you buy or sell your next home!  See what my past clients have to say about me HERE.

Wishing everyone a happy, and successful 2017!