Miami Beach Real Estate Sales Continue to Buck National Trends

The national and international financial headlines have taken a markedly negative tone lately- with widespread reports of a slowdown in the overall economic recovery and especially the housing market. However, for PREMIER "A" location waterfront properties, such as Miami Beach waterfront condominiums and homes, the story is perceptibly different.

I have personally witnessed and worked in putting three deals together in the past month. Due to the ongoing activity of international and cash buyers, Miami Beach's real estate market has been insulated from the national drop-off in sales of the past few months. The vast majority of my clients are not eligible for a tax credit, so their interest in purchasing real estate didn't taper off after the benefit expired at the end of April. The national drop-off in demand generally comes from the lower-end price spectrum buyers who rushed to get in on the tax credit deal. In the two months since the tax credit expired, pending sales in Miami-Dade and Broward Counties have fallen 2.6 percent, according to the Realtor Association of Greater Miami and the Beaches.

However, what I'm seeing and personally experiencing are that financially strong international buyers keep coming into the Miami Beach marketplace. They're especially attracted to the South Beach waterfront real estate market due to the substantial price reductions that we've seen from the market high's of 2006. The inventory of significantly PRICE REDUCED waterfront condos and homes in areas such as South of Fifth Street in South Beach, Palm Island and Hibiscus Island, the Venetian Island chain, Sunset Islands, and even Star Island is extremely limited. The most important criteria to keep in mind for future pricing trends is INVENTORY- in South Beach most especially, the inventory levels for waterfront properties continues to DECLINE.

The Latest Ultra-Luxury Waterfront Example of This Trend:

Address: 55 Palm Avenue, Miami Beach, FL 33139

This unique and impecabbly restored Spanish Colonial Palm Island Estate has over 12,000 SF of interior space, with over 100 linear feet of waterfront on Biscayne Bay. Featuring 12 foot Cathedral ceilings, Bulthaup kitchen, an interior courtyard, incredible backyard with Gazebo & pool. Incredible Views of the Intracoastal and the MB skyline plus much more.

Sold Price: $11,900,000 (498 Days on Market)
Original “For Sale” Price : 15,500,000 (1/2009)
Bedrooms: 8
Bathrooms: 11
Interior S.F.: 12,184 ($976/SF)
Total Land S.F.: 30,000 ($396/SF)
Closed Date: June 16, 2010
Reduction in Sales Price (from Asking): 23%

For those who would like to read more on the latest sales trends: