The Miami Beach Market has been going through quite a bit of turmoil these days.  First we had the presidential election last November as well as a Zika scare before that, and now most recently, we are feeling the aftermath of Hurricane Irma.  Prior to Irma the market was consistently seeing less sales for both condos and single family homes in 2017 compared to 2016. 

Single Family Home Market

The Miami Beach single family home market at first glance, doesn’t seem to be affected as much as the condo market at first glance.  However, if you look closely at the numbers the average sale price per square foot in 2016 for a single family home was $721.58 and when you compare that to $550.97 in 2017, that is a sharp decline at a 24% difference.  In real estate 24% is huge.

Condo Market

When looking at the Miami Beach Condo market, the largest change is not in the selling price per square foot, but rather the actual number of units being sold.  In September 2016 156 condos sold in Miami Beach.  In September 2017, only 78 were sold at a whopping 50% decrease in the number of units sold.  Even though the average sale price per square foot rose slightly from $494 to $497, this pales in comparison to the decrease in sales.

I believe this sharp decrease in sales is coming from a number of different factors.  One major and recent factor of course, is Hurricane Irma.  The number of pending transactions that were affected by the storm is unknown, but when your city is hit by a major hurricane, it tends to delay everything that was happening before the storm, including real estate sales. 

Another big factor is our global economy, the value of the U.S. dollar compared to other currencies and how that impacts the amount of foreign investment we receive.  Miami and Miami Beach rely heavily on foreign investments, and now that those investments are becoming less common, the market is feeling the effects of it.

This can be a pro or a con, depending on how you look at it.  The prices of Miami Beach Real estate in general have been hovering close to the bubble numbers of 2008 for a while now.  The prices that are being asked in todays market are unsustainable once again, and our numbers are starting to reflect that.  The market will begin correcting itself if these trends continue. 

Due to the amount of inventory we have, I would say it is much better to be a buyer right now, vs a seller.  Buyers have many choices, and are in the position to make offers based on “fair market value” of a listed property instead of being forced to pay what a seller “thinks its worth”.  If you are thinking about selling, you can still make a hefty profit if you bought your property more than a few years ago, but only if you are willing to list at fair market value.  Too high of a listing price is a guaranteed way NOT to sell, just look at all of the overpriced inventory that has been on the market for 4 months or longer. 

I welcome any and all clients, old or new to reach out to me to discuss the market and what would be a successful strategy for you whether buying, selling, or renting.  Also, if you enjoy these posts don’t forget to SUBSCRIBE BELOW!