The Island Homes of Miami Beach

Nationally, across the entire United States, the inventories of homes listed for sale on Realtor.com were down nearly 21 percent in October from a year ago, with 135 of 146 markets tracked posting double-digit annual percentage declines.

Declining listing inventories, combined with generally rising prices, can be seen as a positive sign that the overall housing market is turning around in Greater Miami, and most especially in Miami Beach.   Affluent Foreign Buyers are attracted to Miami Beach’s luxury homes in the island communities of Palm, Star, Hibiscus, La Gorce, Sunset Islands I – IV, and the Venetian Islands chain.  This has caused an unprecedented rise in sales of luxury waterfront homes over the past year, with an incredible sales volume increase of  Miami Beach Homes sold in 2011.  For more information on year over year sales comparisons, please see the Miami Beach Home sales analysis on our sister site- TheKleerTeam.com

Miami Beach Luxury Homes – 60 Day Sales:

Analyzing a combination of factors, including unemployment rates and annual changes in median list price, median age of inventory, total listings, and Realtor.com search rank,  Realtor.com compiled a top 10 list of  “Turnaround Real Estate Markets.”

Why Miami is The Top Real Estate Market :

Eleven of the 20 markets in the entire United States that have seen the greatest annual decline in active listings were in Florida, including Miami, Orlando, and Fort Myers, where inventories were down 40 percent or more from a year ago.

Realtor.com inventory declines- The Miami Specific Stats:

Miami Beach Real Estate

Miami Beach’s Housing & overall Real Estate market has followed the recent trend of other luxury markets- attracting wealthy International Buyers looking to take advantage of the lower price points.  A recent USA Today article on the overall housing market summed it up, if you’re rich the housing market is terrific!   What I am seeing in Miami Beach’s Real Estate market is that supply of waterfront homes and condos has dropped dramatically in the past year.  Specifically, waterfront homes in the ultra-luxury communities such as The Venetian, Palm, Star, La Gorce, and Sunset Islands have been selling at a near-record pace.

With the increase in sales activity in Miami Beach’s housing market, the average listing price discount – the percentage difference between list price at time of contract and the contract price- was 9.4% for the first six months of 2011, down from 11.4% in the second half of 2010.  For the second quarter of 2011, the number single family homes sold in Miami Beach increased by almost 7% from the same period last year.

The Five Newest Ultra-Luxury Homes for Sale in Miami Beach:

Showing properties 1 - 5 of 70. See more city of Miami Beach real estate.
(all data current as of 5/18/2012)

1. $8,350,000 : 4380 N BAY RD, Miami Beach
   
   7 beds, 7 full, 1 part baths

   Home size: 8,411 sq ft

   Lot size: 21,100 sqft

   Year built: 1991

   Parking spots: 3

   Days on market: 4
2. $14,750,000 : 82 LA GORCE CR, Miami Beach
   
   7 beds, 8 full, 1 part baths

   Home size: 8,881 sq ft

   Lot size: 30,330 sqft

   Year built: 2004

   Parking spots: 4

   Days on market: 11
3. $7,500,000 : 4731 PINETREE DR, Miami Beach
   
   9 beds, 7 full, 2 part baths

   Home size: 8,296 sq ft

   Lot size: 42,600 sqft

   Year built: 1927

   Parking spots: 3

   Days on market: 14
4. $8,300,000 : 44 W RIVO ALTO DR, Miami Beach
   
   6 beds, 7 full, 1 part baths

   Home size: 7,418 sq ft

   Lot size: 15,750 sqft

   Year built: 2010

   Parking spots: 3

   Days on market: 16
5. $6,400,000 : 5415 PINETREE DR, Miami Beach
   
   6 beds, 6 full, 1 part baths

   Home size: 6,800 sq ft

   Lot size: 12,083 sqft

   Year built: 2001

   Parking spots: 2

   Days on market: 25

Listing information deemed reliable but not guaranteed. Read full disclaimer.

The latest sales statistics for Miami Beach Homes Sold in the past Ninety Days:

Located near the tip of San Marino Island, the Buyer came from a non-MLS representative and just closed for $2,500,000 on August 8th, 2011.  This contemporary & brand new luxurious Miami Beach home features  a roof-top terrace (1,900 sq. ft.) and  an infinity edged swimming pool (15 x 30) with 360 degree panoramic views of Biscayne Bay.  This incredible Miami Beach home is located off of the Venetian Causeway – which connects the City of Miami to Miami Beach.  A very contemporary Miami Beach home with a separate poolside area including electrical outlets for bar, barbeque and jacuzzi.  Also featuring smart-touch color panels for lighting systems, Master bedroom spa, sauna, bidets and many other ultra-luxury amenities for the most discriminating Miami Beach homeowner.

Miami Beach Home- 400 E. San Marino Drive

400 E. San Marino Drive- Kitchen

400 E. San Marino Drive on Miami Beach’s San Marino Island
Closed Sale Price (8/2011) : $2,500,000
House Square Feet: 5,500
Five Bedrooms / Six Baths
Land S.F.: 7,406 S.F.
50 Linear Feet of Waterfront

Miami Beach Star Island Home

This incredible Star Island Luxury Home just sold for an amazing $25,500,000 ($1,700/SF of Living Area). This latest sale is indicative of what’s happening in Miami Beach’s ultra-luxury waterfront real estate market. Most especially for unique “turnkey” waterfront homes, we’re witnessing incredibly strong demand from International buyers. This beautiful Star Island waterfront estate is located next to the homes of such luminaries as Rosie O’Donnell and Gloria Estefan.

Other Ultra-Luxury Miami Beach Waterfront Homes for Sale:

Showing properties 1 - 7 of 7. See more 33139 zip code real estate.
(all data current as of 5/18/2012)

1. $21,000,000 : 27 STAR ISLAND DR, Miami Beach
   
   9 beds, 11 full, 1 part baths

   Home size: 10,000 sq ft

   Lot size: 40,000 sqft
2. $20,000,000 : MLS # A1578525 in Miami Beach
   
   5 beds, 4 full, 1 part baths

   Home size: 8,161 sq ft

   Lot size: 40,000 sqft
3. $19,500,000 : MLS # A1622921 in Miami Beach
   
   12 beds, 11 full, 1 part baths

   Home size: 11,104 sq ft

   Lot size: 1.11 ac
4. $14,900,000 : 943 N VENETIAN DR, Miami
   
   6 beds, 7 full baths

   Home size: 9,255 sq ft

   Lot size: 1.08 ac
5. $14,900,000 : 1 E DILIDO DR, Miami Beach
   
   6 beds, 7 full, 1 part baths

   Home size: 7,829 sq ft

   Lot size: 16,702 sqft
6. $11,900,000 : 34 W DILIDO DR, Miami Beach
   
   5 beds, 5 full, 2 part baths

   Home size: 5,500 sq ft

   Lot size: 13,463 sqft
7. $11,500,000 : 130 PALM AV, Miami Beach
   
   6 beds, 8 full, 1 part baths

   Home size: 7,940 sq ft

   Lot size: 30,000 sqft

Listing information deemed reliable but not guaranteed. Read full disclaimer.

While working with several Miami Beach-specific homebuyers in the past few weeks, I noticed that there is an increasing trend of prices showing a slight INCREASE in value.  This is showing up with luxury Miami Beach waterfront homes, as well as select waterfront condo buildings in South Beach, that are located in the island residential communities in Miami Beach.

I’ve even seen several initial attempts at boom-style “Home Flips”, which I discuss HERE.  How soon will Miami Beach’s homeowners be able to make a quick profit in a Buyer’s market environment is still yet to be determined.  However, I predict  that those Buyers that ventured into Miami Beach’s housing market in the past two years, especially those that purchased  deeply discounted Miami Beach waterfront homes, will begin to see profits in the coming years.

What I’ve been most impressed with is that Miami Beach homes have already demonstrated a bottoming trend, and slight price APPRECIATION.  There’s a much reduced inventory of well-priced waterfront homes available for sale in Miami Beach’s island communities that include the Venetian Islands (see below), Sunset Islands I – IV, Palm, Star, Hibiscus, and the Island of Miami Beach proper – most especially along North Bay Road.

The Latest Example of a “Just Closed” sale on the Venetian Islands shows a Market Bottom, and a slight price appreciation from 2003 price levels.  It should also be noted that Rivo Alto home below was on the active market for over TWO years (on and off at various times).  Also, it was a challenging sale due to the relatively undesireable location of the lot JUST off of the Venetian Causeway, which connects Miami to Miami Beach.

Miami Beach Home on Rivo Alto Drive (Venetian Island Chain):

Rivo Alto Turnkey Waterfront Miami Beach Home
226 West Rivo Alto Drive
Miami Beach, FL 33139
Remarks:  60 feet of waterfrontage, with four bedrooms / four baths, Boat Slip, completely remodeled home on Rivo Alto with a

Guesthouse and a second story master suite – completely updated throughout.  Note:  This home is located on a lot just off of  the Venetian Causeway, which limited it’s overall value / desireability.

Sale Price: $1,800,000 (12/10)
Latest Listed Price : $ 1,990,000
2010 Tax Assesed Value: $1,329,000
Bedrooms: 4
Bathrooms: 4
House S.F.: 3,250
Days on Active Market (Multiple Listing): 700+ Days

Last Sale Price in 2003:  $1,600,000

226 Rivo Alto Drive

Last 90 Days of Miami Beach “Closed” Home Sales ($500K and above):

I’m often asked by both buyers and sellers interested in purchasing or selling a waterfront (and non-waterfront) single family home on Miami Beach if we’ve reached a housing market bottom?  The answer for PRIME waterfront properties located on island communities such as Palm, Star, Hibiscus, Sunset Islands I – IV, and the various Venetian Island communities is that homes that are priced according to latest closed sales comparables are selling quickly.  As inventory continues to be absorbed, we are seeing price stabilization (especially for remodeled and turnkey homes and condos).

Waterfront condos, especially premier waterfront and oceanfront buildings such as Continuum North and South Towers, Apogee, The Portofino, The Murano at Portofino, Murano Grande, Icon, and even The Bentley Bay on West Avenue are also seeing significant sales taking place in the past several months AT REDUCED PRICES.  For South Beach landmark luxury buildings completed after 2001, if the price is right, we are seeing plenty of buyers willing to make reasonable offers.  Therefore, if you’re a seller that needs to sell, my advice is the same- work with an experienced and knowledgeable sales agent/broker that will price your property realistically and then market as agressively as possible.

]]> http://homesinmiamibeachforsale.com/has-miami-beach-reached-the-housing-bottom/feed/ 0 http://homesinmiamibeachforsale.com/miami-beach-homes-sales-january-2010/ http://homesinmiamibeachforsale.com/miami-beach-homes-sales-january-2010/#comments Thu, 07 Jan 2010 21:44:34 +0000 allan http://www.miamibeachrealestateblog.biz/?p=1080 An overview of general Miami Beach Sales Patterns as of January, 2010

In Miami-Dade County, pending home sales decreased by 2.21 percent in December compared to the previous month, from 8,288 to 8,105 according to the Realtor Association of Greater Miami and the Beaches (RAMB) and Southeast Florida Multiple Listing Service.  This slight decrease can be attributed to the holiday season, which traditionally results in fewer home…Read More »

An overview of general Miami Beach Sales Patterns as of January, 2010

In Miami-Dade County, pending home sales decreased by 2.21 percent in December compared to the previous month, from 8,288 to 8,105 according to the Realtor Association of Greater Miami and the Beaches (RAMB) and Southeast Florida Multiple Listing Service.  This slight decrease can be attributed to the holiday season, which traditionally results in fewer home sales.  Since March 2009, when our local real estate board began tracking local pending sales, pending home sales have increased 43 percent as buyers have taken advantage of record-setting affordability conditions, the first-time home buyer tax credit, and a wide selection of properties to choose from.  Closed sales have increased each of the last 16 months, a clear sign of the strengthening market and indicative of stabilization.

Pending sales of condominiums in Miami-Dade County also experienced a negligible decrease in December, dropping half of a percent from 4,414 to 4,394.  Pending sales of single-family homes dropped 4.21 percent in December from the previous month, from 3,874 to 3,711.

We believe that the Miami Beach real estate market has experienced a dramatic recovery over the last year and a half, posting record closed and pending sales increases coupled with strong declines in housing inventory.  Market opportunities resulting from record affordability, low interest rates, and a second wave of short sales and foreclosures will also fuel increased sales this year.  Additionally the always-strong international buyer market segment will remain a major force in the South Florida marketplace.

An illustrative example of a recent Miami Beach (Palm Island) Closed Sale:

Palm Island Home

This was the best opportunity on the Miami Beach market to purchase a home on a guard-gated island community. Surrounded by lush landscaping, this two-story residence is located on prestigious Palm Island, just minutes from downtown Miami, South Beach and world-renowned Ocean Drive. Features include high ceilings, 4 upstairs bedrooms, and an air-conditioned 2-car garage. Pristine conditions.

My opinion as to why it sold in just 66 days on market:  Amazing island community location, spacious floorplan and updated home, price reduced to sell.

Sold Price: $890,000
Original “For Sale” Price : $1,495,000 (3/2007)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,786 ($319/SF)
Land S.F.: 6,000 ($148/SF)
Sold Date: December, 2009
Discount from Original Asking Price: 40%

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Recently, there has been flurry of articles in the newsmedia about a pronounced increase in home sales, which has also led to a stock market rally in the runup to the Thanksgiving Holiday. I’d like to take this opportunity to put a bit of local perspective on this latest sales trend:

75% of the homes sold between August through October in Miami-Dade County were priced under $300,000 and 23% of these sales were for homes listed under $100,000.

Price trends at the lower end of the market have been positive, however moving into the higher price ranges, those are areas that we are still seeing weakness.  Typically, when the supply of homes for sale stands at a year or more, prices tend to fall. With a six- to nine-month supply, prices remain flat. When the supply drops below six months, sales activity begins to spur price appreciation, as it has for recent home sold and priced under $100,000.

Below is sampling of the supply of houses listed for sale in Miami-Dade in October, according to the MLS:

• Under $100,000: four-month supply
• Under $300,000: eight-month supply
• $300,000 to $1 million: 21-month supply
• Over $1 million: four-year supply

Miami Beach’s luxury housing market falls into the upper end category, however, the supply is much more restricted due to the natural barrier (island community) limiting further supply.  Also, virtually no new construction is currently taking place, so we’re experiencing a decline in inventory levels for Miami Beach’s 33139 and 33140 zip codes:

• $300,000 to $500,000: less than six month supply
• $500,000 to $1 million: 14 month supply
• $1 million to $2 million: 18 month supply
• Over $2 million: 23 month supply

The conclusion from the above referenced data – there is no room in the Miami Beach housing market for overpriced listings. The strongest demand is for turnkey (completely remodeled) homes, where the new owners do not have to make an additional investment into the property.

To view latest Miami Beach sales data, visit our Miami Beach Real Estate website

* Data Sources: MLS & Miami-Dade Public Records

Miami Beach single family homes (especially waterfront luxury properties) are in limited supply, and with most major financial news pundits announcing a “housing bottom”, I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of this conclusion.

Venetian Islands Turnkey Home:

Venetian Islands Home

Venetian Islands waterfront home with stunning, direct, Downtown Miami unobstructed bay views. This 3,586 square foot home was renovated with 3 bedrooms, a great kitchen, media room and maid’s bedroom/bath. Facing west, with pool, boat dock and 60′ of waterfront.

Key “Market Bottom” indicators:

“For Sale” Price: $3,200,000 (20 days on the market at this reduced price point)
Closed Price: $2,800,000 (August 11, 2009)
Original List Price : $4,200,000 (May, 2009)
Previous Price Reduction: $3,400,000 (June, 2009)
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,586
Land S.F.: 10,500
Asking Price per S.F.(Land): $304
Previous Sold Date: 2004 ($2,225,000)

Discount from Latest Asking Price: 12.5%

Biscayne Island Home – Wide Bay Fixer Upper:

Biscayne Island Home

Opportunity to complete the remodeling of this Spectacular Waterfront residence located on the Miami side of the Venetian Islands chain.  The new owners will enjoy the Panoramic water views of a home located on a 15,000 lot.

Key “Market Bottom” indicators:

“For Sale” Price: $2,137,500 (5 days on the market at this reduced price point)
Closed Price: $2,030,000 (July 16, 2009)
Original List Price : $6,7500,000 (February, 2007)
Previous Price Reduction: $2,500,000 (March, 2009)
Bedrooms: 3
Bathrooms: 4
House S.F.: 4,010
Land S.F.: 15,000
Asking Price per S.F.(Land): $142
Previous Sold Date: 01/2007 ($5,350,000)

Discount from Latest Asking Price: 5%

If you’re a potential seller of waterfront real estate in Miami Beach and cannot hold on to your property because of negative cash flow (probably if your housing expenses total more than 31% of your gross income), the smart approach is to price right. Working with a knowledgeable, honest, and experienced sales agent is the key here, and the price needs to be based on the last three to six months of closed sales.   My team and I have experienced that Miami Beach waterfront properties- whether they are single family homes or condos which are priced RIGHT have multiple offers and sell quickly.

If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value).  My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years.  There are many reasons why we can expect to see an initially FLAT and then GRADUAL price appreciation in Miami Beach real estate market for several years.  Times have indeed changed, but the opportunity to purchase a discounted PRIME waterfront single family home or condo is now!

It’s been a busy month for myself and my team, as we’re seeing strong buyer activity from so-called “Bargain Hunters”.  I’ve intentionally avoided weighing in on the technicalities of the financial crisis and the future impact of the Paulson Plan, as there are many more qualified sources out there to give readers their analysis.  However, now that we are seeing some stability return to the banking sector, I’ve noticed a strong surge in buyers looking to purchase prime real estate properties at significant discounts.  What’s  happening are that the properties in the best locations are being picked up now at prices that range from approximately 30%-50% discounted values from 2005 prices.

Waterfront homes (turnkey) in Miami Beach at reasonable prices are in surprisingly short supply, and these are the first of the “bargains” that have been purchased recently.  For example, I recently conducted a search for a client with a budget of $5 Million looking to purchase a luxury waterfront home (remodeled) on the Venetian, Palm Island, Hibiscus, Sunset Islands or Bay Drive in Miami Beach.  The real choices?  Just twelve waterfront homes!

Also, a few of our latest sales are indicative of the above referenced “deals” that are happening now:

Jade Beach- Prime Location Sale #1
Spectacular Lower Penthouse #4401 “F Line”- 4 beds / 4.5 baths – 3,136 S.F.
Contract Price: $2,475,000  ($789/S.F.)
2005 Sales Price:  $3,400,000 ($1,084/ S.F.)
Today’s Discount:  27%
•    A spectacular 51-story oceanfront tower
•    Designed by Carlos Ott and Fortune Development Int’l
•    Beautiful entrance with cascading fountains, lush landscaped gardens, reflecting pools, and contemporary décor throughout
•    Three-story Grand Entrance Lobby with direct ocean and pool views
•    Located directly on the Ocean close to Bal Harbour Shoppes and Aventura Mall, as well as easy access to Miami and Fort Lauderdale International Airports

(Next door condo Jade Ocean, is completed)

Jade Beach Floor Plan- Unit F

Jade Beach Condo

Jade Brickell- Prime Location Sale #2 (Bank Owned / Pre- Foreclosure Sale)
Spectacular 43rd Story Residence “E”- 4 beds / 4.5 baths – 3,415 S.F.
Contract Price: $1,600,000 ($468 / S.F.)
2005 Appraised Value:  $3,100,000 ($907 / S.F.)
Today’s Discount:  48%

Downtown Miami’s Most Luxurious & Lavish Building, the Jade Residences is a 49-story building offering 326 luxury residences with advanced technology. Spectacular Ocean and City Views, state-of-the-art security system, Infinity edge pool, Sauna, steam room, fitness center, European spa, racquetball, concierge services.
•    49 story architectural masterpiece designed by Bernard Zyscovich
•    Distinctive three-tiered tower offering views of Biscayne Bay, Downtown Miami and Key Biscayne
•    Grand entrance lobby graced breathtaking 21-foot ceiling with contemporary deco

Jade Brickell - Unit E

Jade Brickell condo - Miami