Despite the latest troubling economic headlines coming out of Europe and U.S. overall economic indicators, premier waterfront properties continue an upward sales trend.  The latest example of this is a sale that just took place in Bay Point in Miami.  I’m going to deviate from my usual pattern of only focusing on Miami Beach sales here, since this latest sale is indicative of the overall trend with premier waterfront properties located either in waterfront or island communities in Greater Miami.

This trophy home on Bay Point is located on a double sized lot!  This eight bedroom American traditional estate has 175 feet of deep water frontage.  Boat lift, protected harbour with no bridges to the Bay, this home was meticulously renovated and features wood burning fireplaces, an oversized pool and hot tubs.  Exercise Room, two car garage, courtyard entryway for multiple parking and walking gardens throughout the property.  This home had not been on the market in 23 years and is one-of-a-kind!

Sold Price: $6,770,000
Original “For Sale” Price : $8,990,000 (2/2010)
Previous “Sold” Price (1/1998) : $1,600,000 (1988)
Bedrooms: 8
Bathrooms: 10
House S.F.: 10,841 ($624/SF)
Land S.F.: 30,823 ($219/SF)
Sold Date: June 28, 2010
Total Time on Active Market: 304 Days

I’d like to continue highlighting evidence of the resurgence in sales activity for price reduced waterfront single family homes in the Miami Beach real estate market- specifically for North Bay Road waterfront home sales.  The sales story of these two waterfront homes is a great example of what’s happening in today’s Miami Beach real estate market- one sold quickly close to the asking price, and the other was reduced by over 50% over a four year time span:

North Bay Road Waterfront Home (6100 North Bay RD, Miami Beach, FL)

Spectacular wide bay views and the most gorgeous sunsets make this boater’s paradise a great opportunity to own on prestigious North Bay Road.Situated on a 20,000 SF lot, this home + guest house is 5,000 SF,with 3 Bedroom/3 Bath.It has been masterfully updated with wonderful entertaining spaces that features a chef’s kitchen,marble floors,marble bathrooms,generator,+gated security. Florida living at its best!

Sold Price: $3,350,000
Original “For Sale” Price : $3,100,000 (2/2010)
Previous “Sold” Price (1/1998) : $500,000
Bedrooms: 3
Bathrooms: 3
House S.F.: 4,889 ($702/SF)
Land S.F.: 19,452 ($176/SF)
Sold Date: March 19, 2010
Total Time on Active Market: 59 Days
Discount from Original Asking Price: 8%

Luxury Home (5718 North Bay Road, Miami Beach, FL 33141)

Exterior modern design with luxurious interiors in Med motifs, marble fireplaces, coffered ceilings, elaborate moldings, marble floors, ornate stonework and mahogany millwork. Spacious wet bar/piano room, adjacent media rm. opens onto interior courtyard, pool and huge dock for large vessel.  Spacious circular drive with gates, electric shutters, elevator, office, guest & staff  bedrooms with adjacent sun room.

Sold Price: $3,350,000
Original “For Sale” Price : $6,750,000 (3/2006)
Previous “Sold” Price (6/1980) : $390,000
Bedrooms: 6
Bathrooms: 7
House S.F.: 6,545 ($511/SF)
Land S.F.: 15,536 ($216/SF)
Sold Date: March 18, 2010
Total Time on Active Market: 40+ Months!
Discount from Original Asking Price: 50% +

My advice from these two examples for sellers:  Price your home RIGHT from the beginning and you will get MUCH more buyer activity (perhaps even a bidding war).  Overpriced homes sit on the market a LONG time, with a downward price spiral trying to chase the market & generate interest with better priced competing waterfront single family homes.

As a long-time resident of Miami Beach, I’ve witnessed a remarkable transformation in our community.  When I moved to Miami Beach in 1992, the waterfront island communities consisted of mostly aging, smaller winter homes that had long-ago seen their heyday.  For example, Palm Island was where Barbara Walters grew up, and where Al Capone had a winter hideaway.

The most recent evidence of Miami Beach’s resurgence and rise to national prominence can be witnessed in the recent DNC fundraiser that was held at the Glorida Estefan’s house on Star Island, featuring a personal appearance by none other than Barack Obama.

Miami Beach waterfront homes continue to attract celebrities, high net wealth individuals (otherwise known as the rich and famous), and those seeking security and privacy. The architectural uniqueness, beauty, quality of life, and the rich variety of homes in the different island communities is like no other on the planet.

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

Miami Beach single family homes (especially waterfront luxury homes) that are truly good deals continue to be in short supply. I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of a price bottoming trend:

Di Lido Island Turnkey Home with Endless Water Views

Luxury Home - 830 W Dilido Dr, Miami Beach

Tropical paradise for that was on the market for sale for just 12 days at the final asking price of $2.9 Million. Master bedroom is surrounded by water and sunlight which opens to pool/deck. Wide bay views at the north tip  of Venetian Islands. The oversized living room, completely updated, is very comfortable and sunny. Courtyard/ circular driveway decorated  bytrimmed landscaping and wrought iron sliding gate. Fabulous private pool overlooking the open bay, dock and other boat equipment.

Key “Market Bottom” indicators:

“For Sale” Price: $2,950,000 (12 days on the market at this reduced price point)
Original List Price : $4,700,000 (July, 2008)
Previous Price Reduction: $3,450,000 (January, 2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,734
Land S.F.: 13,408
Closed Price per S.F.(Land): $194
Closed Price per S.F.(House): $698
Previous Sold Date: 2004 ($3,150,000)
Closed Price: $2,610,000 (Sept 2, 2009)
Discount from Latest Asking Price: 11.5%

Rivo Alto Island Waterfront Home – Completely Remodeled

25 East Rivo Alto home in Miami Beach

Over 100 linear feet on Biscayne Bay, on the preferred southern side of the Venetian Islands. This Mediterranean delight greets with a beautiful courtyard setting reminiscent of a European Villa. Gracious living areas and authentic touches throughout.  Upstairs are 3 bedrooms with Water Views in main home. The sale also included a separate two story adjacent guest house.

Key “Market Bottom” indicators:

“For Sale” Price: $2,590,000 (19 days on the market at this ACCURATE price point)
Bedrooms: 4
Bathrooms: 4
House S.F.: 3,894
Land S.F.: 13,382
Closed Price per S.F.(Land): $175
Closed Price per S.F.(House): $740
Previous Sold Date: 1998 ($950,000)
Closed Price: $2,350,000 (Sept 1, 2009)
Discount from Latest Asking Price: 9.2%

Biscayne Island- Incredible Land “Steal”

Miami Beach Venetian Island Home

Double lot on Biscayne Island this home needed to be updated. Biscayne Island is one of the Venetian Islands located on the Miami side. Located at the end of the street in a private cul de sac surrounded by million dollar homes. This one sold for well below land appraised value. Located just minutes from the new performing arts center, beaches, Lincoln Road, Ocean Drive, the airport, Downtown Miami, entertainment, shopping and more.

Key “Market Bottom” indicators:

“For Sale” Price: $700,000 (207 days on the market at this price point)
Original List Price : $1,500,000 (July, 2007)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,888
Land S.F.: 14,760
Closed Price per S.F.(Land): $38
Closed Price per S.F.(House): $301
Closed Price: $570,000 (July 24, 2009)
Discount from Latest Asking Price: 18.5%

What we’re seeing (again) is that Miami Beach waterfront and non-waterfront single family homes that are priced RIGHT have multiple offers and sell relatively 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) or have the cash to invest in remodeling a home.  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.