Where are we a year later?
The consensus is that the Miami Real Estate market is stabilizing. Overall, Q3 2018 saw more sales compared to the third quarter of 2017, both for Single Family Homes and Condos. Median prices also rose across the board. On the Mainland, inventories are still rising slightly, but they are rising by the same percentage sales are rising, bringing more balance to the market. On the Beaches, there was a huge burst of sales and little inventory growth, which is exactly what we needed. But Miami is a city of sub-markets, all with their own unique dynamics. Read on for the full story.
Hurricane Irma threw a big wrench in Q3 2017, so it’s no wonder sales were stronger in Q3 2018. What’s interesting is that most of the sales activity in this last quarter was concentrated in South of Fifth and North Beach. Sales even declined from 5th Street to 63rd Street quarter over quarter. We are still very much in a Buyer’s Market on Miami Beach with 22 months of inventory overall and roughly 50 months of inventory for Luxury Homes and Condos. Top sale Q3 was a 9 bedroom estate on Pinetree Drive sold for $21,750,000, 26% off original asking price.
The market looks healthy on Mainland Miami, with sales and prices increasing. This is the 16th consecutive quarterly price increase and the median price is now $315,000. In the Luxury markets, more Condos and Homes are selling and at higher prices in Q3 2018 than last year’s Q3. We now have 45 months of luxury condo inventory (a daunting number, but 15% less than last year’s 53 months). Single family home inventory increased slightly to 18 months of inventory. The biggest sale in Q3 was a 5 bedroom home in Hughes Cove which sold for $12,437,500, roughly one third off its asking price.
South of Fifth saw lots more sales in this year’s Q3. In the Luxury market, lower priced units sold more, bringing the median price down. But total dollars sold in luxury units priced $1M + was up from $35M in Q3 2017 to $55M in Q3 2018 or 57%. South of Fifth currently has 25 months of condo inventory. The top sale in Q3 was a 4 bedroom ’02 unit in the North Tower of the Continuum for $6,600,000.
Key Biscayne saw a strong Q3 for Condos. Top sale was a 2 bedroom in Oceana that traded for $3.5M or $2,055 a square foot. KB homes also had a strong quarter.
Sunny Isles is suffering from a huge inventory of luxury condos for sale ($1M and up) which are moving at a slower rate than they did last year at this time. In Q3 2017, 36 Units sold for a total of $84M in sales. In Q3 2018, 31 sold for a total of $62M, a 26% reduction. Currently, there are 630 condos listed priced $1M and up.
Aventura shows fairly stable numbers year over year. Your money goes farther here. At the high end, brand new waterfront condos like Echo Aventura and Marina Palms are trading for $500-$600 per foot.
Edgewater saw more sales in Q3, especially at the high end. Sales over $1M doubled. These numbers are strong and don’t take into consideration all the closings currently happening in the Paraiso Towers.
No big changes in Pinecrest. With great schools, strict zoning and large leafy lots, the area continues to be one of the most sought after for families. Top sale was a 9 bed mansion on Moss Ranch for $7.2M.
With lots of inventory on Brickell, sellers were forced to reduce prices to move their units. In condos priced over $1M, the average price reduction from original asking price was over $400,000 in Q3 2018…
Sales fell dramatically from Q3 last year at Bal Harbour. It’s not clear the cause, but perhaps buyers are being pulled by deals to the north in Sunny Isles where there is lots of inventory to choose from and motivated sellers.