The Current State of the Miami Beach Condo MarketSeptember 26, 2017
Current State of the Miami Beach Condo Market
The Miami Beach real estate market isn’t your typical housing market. In Miami Beach, laid-back walk-ups co-exist with $10-million condo mansions. Local, out-of-state and foreign buyers and sellers compete with each other for some of the most desirable real estate investments in the world. And, like anyplace else, Miami Beach has has never been immune to market swings. Reading the pulse of the Miami Beach condo market is one of the reasons Aria Luxe has become one of the most trusted real estate firms in Miami Beach.
When the national housing market began to experience an upswing a few years ago, many media outlets reported Miami as booming. While this was true in some ways, the reality was more nuanced. Let’s take a look at the market for Miami Beach condos as it stands right now.
The Luxury Condo Market
The ultra-luxury condo market can be seen as an indicator of both growth in Miami and national growth, but is something to approach carefully when looking into investment trends. The main reason for this stems from the difficulty of reading trends from only a few data points. In the high-end condo market, buyers have closed on fewer than 200 properties per quarter across all of Miami and the islands. Yet we can see indications that the value loss over the last year or so is beginning to stabilize and recover. In the first quarter of 2016, the average luxury condo price per square foot was $605. A year later, the average price was $419, an improvement from quarter four 2016. In other words, luxury condo values seem to have hit a support level.
Regarding overall sales prices, buyers are still getting a discount: While the average closing price at the beginning of 2016 was more than $1.4 million, the average at the start of this year was under a million. Another indicator of a lingering buyers’ market is that Miami Beach condos and real estate for sale in other high-end areas have been reporting a large number of homes for sale.
The Condo Market
At the same time as Miami’s high-end housing market has either shown improvements or suffered from statistical complications, the mid-price condo market has not seen the same deep price swings. In most instances, condos for sale have been shown to maintain price stability, despite the general trend. The average price per square foot between the last quarter of 2016 and the first of 2017 is increasing faster in the condo market overall than it is in the luxury market. The ultimate conclusion of this allows Miami Beach real estate to report an overall buyer’s market.
For decades, the city of Miami Beach has been the premier destination for people looking to escape the humdrum of everyday life and enjoy a more extraordinary experience. Warm weather, year-round sunshine, and beautiful white sands have all made Miami Beach real estate an attractive housing market for people across the country and around the world. Because of this, the diversity and inventory of Miami Beach condos and beachfront mansions for sale has always been a great source of excitement and investment income.
To learn more about Miami Beach real estate, contact Aria Luxe agents today.