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 Star Island Sunset (Seen from South Beach)

Miami Beach Residents and Homeowners are greatly relieved that Hurricane Irene has passed by SouthEast Florida. The last major hurricane to affect the Greater Miami and Miami Beach area occured was Fall, 2005. The result were rapidly increasing insurance rates, as well as the beginning of a sharp turn towards a Buyer’s Market. In the past year, Miami Beach waterfront homeowners have experienced a reduction in property taxes, homeowner insurance rates, and increased demand for waterfront properties (especially in the luxury island communities of Miami Beach).

Enjoy this evening’s spectacular sunset over Star Island!

Over the past six months, and most especially since the beginning of 2011, my team and I have witnessed a significant increase in buyer activity for waterfront Miami Beach real estate, most especially for what I consider to be “A” homes for sale in Miami Beach’s island communities.  

Whether it’s a single family home or condominium, a requirement for an “A” Miami Beach property in this Buyer’s market is that it be turnkey, or completely remodeled and updated.  In other words, the only additional expense a buyer has to be concerned with is moving in with their furniture and personal belongings.

Most especially, when sellers price their homes according to the last three months of CLOSED SALES in comparable neighborhoods, they usually draw tremendous interest from qualified Buyers.  If the real estate agent is savvy in handling (and carefully screens these potential Buyers and their Brokers), these types of waterfront homes usually receive multiple offers.  I’ve noticed in the past two months that our Miami Beach focused real estate websites are also seeing a dramatic increase in traffic, with International cooperating brokers calling with inquiries and sending sales contracts SIGHT UNSEEN.

Based on my personal experience, Miami Beach waterfront home sales are beginning to come back, with prices to GRADUALLY follow as the “A” turnkey home inventory diminishes.  Today’s high net worth foreign buyers are especially interested in the highly sought-after Guard Gated and Luxury island communities of Palm, Star, and Hibiscus Islands.  Further North, we’re also seeing significant sales momentum on Miami Beach’s North Bay Road, Sunset Islands I-IV, The Venetian Islands Chain, and Normandy Island.

A few examples of “A” Miami Beach Waterfront Homes and Estates currently on the market:

Showing properties 1 - 7 of 7. See more Palm Island tract real estate.
(all data current as of 5/22/2012)

1. $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

   Year built: 1998

   Parking spots: 4

   Days on market: 174
2. $9,500,000 : 93 PALM AV, Miami Beach
   
   7 beds, 5 full, 2 part baths

   Home size: 6,103 sq ft

   Lot size: 30,000 sqft

   Year built: 1922

   Parking spots: 1

   Days on market: 119
3. $8,200,000 : 142 PALM AV, Miami Beach
   
   7 beds, 6 full, 1 part baths

   Home size: 9,455 sq ft

   Lot size: 30,000 sqft

   Year built: 1920

   Parking spots: 4

   Days on market: 319
4. $7,900,000 : 120 PALM AV, Miami Beach
   
   6 beds, 6 full, 1 part baths

   Home size: 6,461 sq ft

   Lot size: 30,000 sqft

   Year built: 1934

   Days on market: 169
5. $3,950,000 : 224 S COCONUT LN, Miami Beach
   
   5 beds, 5 full baths

   Home size: 3,609 sq ft

   Lot size: 8,000 sqft

   Year built: 1939

   Parking spots: 2

   Days on market: 1,546
6. $2,899,000 : 211 N COCONUT LN, Miami Beach
   
   5 beds, 5 full baths

   Home size: 4,571 sq ft

   Lot size: 7,000 sqft

   Year built: 1924

   Parking spots: 2

   Days on market: 125
7. $674,900 : MLS # A1624091 in Weston
   
   4 beds, 3 full baths

   Home size: 3,104 sq ft

   Lot size: 14,614 sqft

   Year built: 1990

   Parking spots: 2

   Days on market: 50

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

It’s no secret that since 2007, Miami and Miami Beach’s overall real estate market has been defined as a buyers market.  Due to the unique demographic nature of Miami Beach- with residents and owners who come from all different parts of the world, today more than ever it’s critical that a listing agent has an INTERNATIONAL marketing plan.

Today, the strongest demand for single family homes and condominiums (especially waterfront properties) is coming from buyers in Brazil, Argentina, Eastern Europe, Venezuela, and Colombia.  Due to currency fluctuations and other international economic trends, the source of international buyer traffic tends to shift.  In my opinion, an agent needs to be knowledgeable about where today’s International buyers are coming from- which means also being able to understand their particular needs and mindset.  For example, in certain European countries Real Estate taxes are much lower than they are in Florida, which means that this is a specific topic that needs to be clarified early on in the purchasing process.

Miami Beach waterfront homes located on Star Island, Palm and Hibiscus Islands, the Venetian Island chain including San Marino island, Fisher Island, and Sunset Islands have drawn the wealthy and famous since the early 1920′s. Starting with such famous (and infamous) celebrities Al Capone, Lou Walters (father of Barbara Walters), Jackie Gleason, and many others- Miami Beach island communities offer the most sought-after waterfront luxury homes and estates in the world.

Miami Beach Palm Island Homes

These exclusive Miami Beach homes and estates are surrounded by the beautiful waters that form Biscayne Bay. As of today, Star Island, Palm, and Fisher Islands are the home (and in some cases the second and third homes) to famous residents and celebrities such as Rosie O’Donnell, Gloria Estefan, Oprah Winfrey, Sean Combs, Shaquille O’Neal, Tommy Mottola, and many of the world’s most elite business and political leaders.

Miami Beach's Elite Homeowners

Choosing a Miami Beach listing Agent is very important for seller of any properties in Miami Beach.  Having worked & sold luxury waterfront homes and condominiums for over 12 years in Miami Beach, I’d like to take this opportunity to introduce our viewers and readers to our new video series dedicated to SELLERS.  What are some of the traits and skills to look for in a real estate agent who will be marketing your property?

The first trait or quality that I recommend- attention to details:  the listing agent should be very knowledgeable about the home, building, or specific condominium that they are exclusively marketing.  This means knowing from memory (or have the information readily available) such as lot size, key features of the property, number of homes in a community, homeowner association dues, zoning and legal restrictions (if any).  Being meticulous with pictures, written text, and brochures- all of online and print media should present the condo or home in the BEST possible way.  This is most important today- given that in overall Miami and Miami Beach we are working in a BUYERS market.

I’m often asked when traveling, what makes Miami Beach so special? The answer can be seen in the picture below- it really does speak a thousand words!

As the signs of a national bottom in housing continue to increase (along with expectations of a gradual recovery), Miami Beach’s waterfront housing market is already well on the way to gradual price appreciation.  As the inventory levels of unsold homes decrease, we are witnessing slight price APPRECIATION for select waterfront island communities with luxury homes in Miami Beach. In the coming weeks, I’ll be highlighting specific examples from the nearby island communities for our readers. In the meantime, enjoy the view!

One of the key skills that a client should look for in selecting a Real Estate agent to represent them in the sale of their single family home or condominium in today’s tough market environment:

The agent should embrace today’s technology and business trends. Life today moves at a rapid pace- with banks, lawyers, title companies, South Beach property buyers, and property owners expecting a FAST response to inquiries. This has been my recent experience, most especially, during the CRITICAL moments of hammering out an agreement to purchase or sell a property. If your listing agent does not have, as an absolute minimum, a smartphone and is responding to your emails and phone calls within twelve hours, then you are NOT dealing with a tech savvy real estate agent!

I’d like to take this opportunity to share with our readers that latest general Miami Beach real estate sales data courtesy of the Greater Miami & Miami Beach’s Board of Realtors:

For the Miami metropolitan statistical area (MSA), there was a 53 percent increase of existing single-family home sales year-end 2009 compared to 2008.  This represents the highest year-end increase for single-family homes of any major metro market in Florida and is 20 percent higher than the statewide increase of 31 percent.  The sales of existing condominiums in the Miami MSA also increased 50 percent year-end 2009 compared to 2008.

The 2009 average monthly increase of single-family home and condominium sales in the Miami MSA is 56 percent and 52.8 percent respectively.

The Miami real estate market has experienced a surge in sales each of the last 17 months compared to same periods the previous year, and 2009 marked the first full year of monthly increases of home sales.

In the Miami MSA, there was a 45 percent increase of existing single-family home sales December 2009 compared to December 2008.  This also was the highest December 2009 increase for single-family homes of any major metro market in Florida.  Statewide single-family sales increased 33 percent.  The sales of existing condominiums in the Miami MSA increased 68 percent December 2009 compared to the same period the previous year.

Nationally, sales of existing single-family homes, townhouses, condominiums, and co-ops fell 16.7 percent from the previous month and 4.74 percent from December 2008.

Overall, we are seeing a leveling off of prices, and a consistently declining inventory of unsold homes.

Average Sales Prices Increasing:
The median sales price for single-family homes reported in Miami-Dade in December 2009 was $204,300, down a negligible 5 percent from the previous year but up from the previous month. The median sales price for condominiums was $148,200, down only 16 percent from the previous year but an xx percent increase from the previous month.

The median sales price for single-family homes reported in Miami-Dade year-end 2009 was $195,300, down 29 percent. The median sales price for condominiums was $142,500, down 40 percent from the previous year.

According to the Southeast Florida Multiple Listing Service, the average sales price for residential properties that sold in Miami-Dade County in December was $323,308 for single-family homes and $248,107 for condominiums, decreases of 1.5 percent and 7.4 percent respectively compared to the previous year.

Days on the Market and Inventory Levels:
Inventory levels continue to decrease substantially, another indicator that supports the local market’s recovery.

The inventory of listings in Miami-Dade County according to the Southeast Florida Multiple Listing Service has dropped more than 42 percent in the last 17 months – from 43,095 to 25,021 – and December 2009 brought a 2.0 percent decrease in just one month.    Nationally, total housing inventory at the end of December declined 6.6 percent from the previous month

Miami Beach Inventory Levels:

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

• Under $500,000: eight-month supply of homes
• $300,000 to $1 million: 21-month supply
• Over $1 million: four-year supply

Miami Beach’s luxury housing market falls into mainly in the over $500K category, however, the supply is much more restricted due to the fact that these are islands communities.  Also, since there is no new construction taking place, I continue to expect Miami Beach’s housing inventory to slowly work it’s way down to a healthy six to nine month supply for the luxury segment of the market.

Miami Beach Housing Inventory:

• $300,000 to $500,000: less than six month supply
• $500,000 to $1 million: 15 month supply
• Over $1 million : 24 months supply