Hello and welcome back to the Miami Beaches Market Pulse! For the month of May 2016, I am simply going to publish the data and give a brief summary for each zip code. I have been working on getting out a Special Edition Report for the month of June and first half of 2016. It will come next week in two parts; the first will be my standard format comparing year over year data for the prior 30 days, and the Part 2 will be exclusively focused on the Distressed Property Market of the Miami Beaches. The month of May 2016 has seen the continuation of a correction on the Miami Beaches I first documented May of last year. In May 2015’s article, I reported (in this article here) a massive drop in year over year Sales Volume (comparing May 2015 to May 2014) for every zip code of the Miami Beaches. 12 Months later, here are the year-over-year (over year) results.
Market Activity & Neighborhood Reports by Zip Code for the Miami Beaches
33139 – South Beach & The Venetian Islands
Median Est. Home Value: $392K, Up 0.6% | Median Est. Listing Price: $279K, Up 3.9% | Median Days in RPR: 122, Up 9.9% | Sales Volume: 130, Down –24.4%
Click here to receive the 33139 Market Activity Report
Click here to receive the 33139 Neighborhood Report
MLS Sales Volume remains near a 3 year low. Listing Volume is at a 3 year high.
Nearly 70% of sales were under 400K; there appears to be “support” (borrowing a term from stock market lingo when referencing stock price charts) at a median sales price of 250K. At a price per square foot perspective, almost 80% of sales ranged from 200-600 dollars per square foot, almost evenly split between 200-400 per square foot (Class C+ to Class B properties) and 400-600 dollars per square foot (Class B to Class A- properties). The higher end of the market, 600-1200+ per square foot represents Class A and A+ properties and those accounted for 25% of total sales in the 33139 zip code. Average time on the market is up nearly 10% and stands firmly at 4 months!
33140 – Mid-Beach
Median Est. Home Value: $495K, Up 4.7% | Median Est. Listing Price: $480K, Up 21.5% | Median Days in RPR: 117, Up 2.6% | Sales Volume: 66, Down –19.5%
Click here to receive the 33140 Market Activity Report
Click here to receive the 33140 Neighborhood Report
MLS Sales Volume is near a 3 year low. Listing Volume is at a 3 year high.
The Median Sales Price, it appears, has “double bottomed”, beginning in January 2014 and into March of 2015. The trend has been higher due to new construction, rehabilitation of existing buildings & units, and (at least in my own experience speaking with people) because they “…want to live on Miami Beach, but NOT on South Beach…”. The overall market remains week with record listing volume and near-3-year-low Sales Volume. Average time on the market is nearly 4 months!
Sales Volume is well below average for the season (as well) when compared over the past 3 years, and Listing Volume has etched even higher to a new 3 year high! Roughly 75% of sales have been less than a $600K sales price, and 66 sales were over $1.2 Million dollars. Less than one eighth of all sales transactions were between 600K and 1.2 Million dollars. The bulk of sales ranged between $200 & $500 dollars per square foot. Approximately 10% of all sales were greater than $800 dollars per square foot, and 3% were less than $100 per square foot.
33141 – North Beach & North Bay Village
Median Est. Home Value: $262K, Up 0.4% | Median Est. Listing Price: $265K, Up 15.3% | Median Days in RPR: 102, Up 4.1% | Sales Volume: 74, Down –36.2%
Click here to receive the 33141 Market Activity Report
Click here to receive the 33141 Neighborhood Report
MLS Sales Volume is near 3 year low. Listing Volume is at a 3 year high.
I have repeatedly said that 33141 offers the best possibly value for anyone, but most importantly the “common man”. The average pricing, especially considering the location (and that location’s future) is, in my professional opinion, a once-in-a-lifetime deal for someone who wishes to own and/or live in Miami Beach. Listing Volume continues to climb while Sales Volume continues to fall off. Approximately 60% of all transaction were under 300K. 300-600K accounted for another 18% while residences over 600K accounted for 20% of total transactions. 50% of all transactions were prices at under $250 dollars per square foot (with approximately half of those being under $200 dollars per square foot), and 40% of all transactions were between $250 & $500 dollars per square foot. Median Sales price is only edging higher because of newer, higher-end sales which account for approximately 55 of 400 transactions yet were nearly triple the value of 50% of the bulk of transactions. Considering other than prospective distressed opportunities for acquisition, I believe this area has reached a “floor” in terms of price (+/-10% from the current average median sales price); I would not expect to do better under most circumstances and property conditions. Average time on the market is 3.5 months.
33154 – Bal Harbour & Bay Harbor Islands
Median Est. Home Value: $680K, Up 17.3% | Median Est. Listing Price: $500K, Up 6.4% | Median Days in RPR: 129, Up 0.8% | Sales Volume: 38, Down –39.7%
Click here to receive the 33154 Market Activity Report
Click here to receive the 33154 Neighborhood Report
MLS Sales Volume is near a 3 year low. Listing Volume remains at a 3 year high.
Bal Harbour and the Bay Harbor Islands are home to a wealthy and exclusive community. Median Sales Price is near a 3-year low, Average time on the market is just over 4 months, and Listing Volume remains matched with last month’s 3 year high. Median Listing Price has trended higher in 2016 overall and is currently hovering just about $450K. Once again, there is an enormous disparity between the different asset classes selling. Approximately 45% of all sales transactions were under $500K, while 30% were between $500K and $1.1 Million USD. 20% of all sales were over $1.1 Million USD. More than 60% of transactions ranged between 200 dollars and 500 dollars per square foot. More than 80% of sales were for 1 and 2 bedroom properties.
33160 – Sunny Isles Beach, Eastern Shores & Golden Beach
Median Est. Home Value: $351K, Up 0.4% | Median Est. Listing Price, $326K, Up 23.1% | Median Days in RPR, 117, Up 6.4% | Sales Volume: 111, Down –26.5%
Click here to receive the 33160 Market Activity Report
Click here to receive the 33160 Neighborhood Report
MLS Sales Volume is at a 3 year low. Listing Volume remains at a 3 year high.
Do not be fooled by the data! Median Listing Price is up substantially because of a particular phenomenon that is well documented (by myself and other sources). New units in new towers are coming online and as much as 20% of these buildings end up listed within a few months of their opening dates, and given that pricing started at circa $1400.00 per square foot in these units (pre-construction pricing), it should be obvious this newer inventory is skewing the data. So while the Median Listing Price is up over 20%, the Median Estimated Home Value is virtually flat year over year. What is important is that once again Sales Volume is down substantially, hovering just above a 3 year low, and Listing Volume remains at a 3 year high! Approximately 50% of all sales transactions have been under $400K with the remainder distributed well into the $1 Million+ range.
I live in Sunny Isles Beach, and have done so for nearly 7 years. There is a wonderful, long-term opportunity here for the affluent family. Sunny Isles Beach recently completed Gateway Park, an area that will be family-oriented complete with an awesome children’s playground and a theatre for cultural performances; the city is currently in the process of sinking all of the power lines running along the A1A into the ground, and it has also completed several other parks and park renovations, all of which are geared for the entertainment and enjoyment of young families. For a man who is aspiring to be a father one day soon, I believe I am in the right place for what I want.