If you are a buyer or a seller of South Beach real estate, you may be wondering how the market is holding up for condos in Miami Beach. I like to use the South of Fifth neighborhood (SoFi) because it has a nice concentration of condos and is considered the area of the most prestigious condominiums in the greatest concentration. There are 2110 condos (that’s right!) in the nine buildings in the South Beach Condo Market Index.
This data is based on information from the Southeast Florida Regional (SEFR) MLS or from the associations participating in the SEFR for the period of 1/1/2008-11/9/2008.
Miami Beach Real Estate
My last post on Miami Beach condo stats was on August 6th. Between June 30th and November 11th the number of sales in each condo is as follows:
- Apogee South Beach-3
- Continuum South-5
- Continuum North-8
- ICON South Beach-14
- Murano Grande-7
- Portofino Tower-3
- South Pointe Tower-2
- Yacht Club at Portofino-6
Miami Beach Condo Sellers: Here’s your cup of coffee
Nothing really shocking here, but looking at the numbers from just over a year ago, inventory is hanging around much longer. What most don’t realize is that the chart above is probably the most telling of all. Here’s the rub: condos don’t sell for whatever reason (I know what it is, but more on that later) and the inventory continues to back up. Buyers see this as even more of a reason to either make “low ball” offers or wait on the sidelines. Why? Because real estate is primarily driven by the law of supply and demand. Lots of supply/low demand: prices fall. A great anecdote is the price of gas over the last few months. Demand eased, inventory backed up, and prices fell.
Generally, 10% of the building inventory could be for sale at any one time. The average condo inventory for each of the nine buildings in South Beach-SoFi is 15.9%; which is up from 13.3% from 6/30/2008, or an EXTRA 55 units added to the normal amount of inventory already on the market. Obviously, Continuum North and Apogee South Beach have added a lot of units to the market, but that is normal. Their percentages will come down.
Here’s the fun one. Six of the nine buildings have gone up in price ($ PSF) since the last market report. Apogee surprises me, time and time again. Apogee South Beach is #1 since it came on the market earlier this year.