Miami Beach waterfront real estate sales activity off by 50% as compared to the same period last year

 

 This post started out as a 2Q 2009 report on Miami Beach waterfront home sales.  As I started to gather the info, the first thing that I noticed was that there wasn’t a lot of info to gather.  Not only did I use the MLS sold info, I scoured the tax rolls to make sure that no sale was left out.  Below is waterfront sales activity thru 6/30/2009.

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Miami Beach Waterfront Stats for Period 1/1/2008 thru 6/30/2008

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The story is the comparison of year-over-year stats:

  • Number of Sales:
    2008: 30
    2009: 16
  • Sold Average $PSF
    2008: $966
    2009: $675
  • Average Days of Market [DOM]
    2008: 216
    2009: 272

Why?  Almost a $300 PSF price drop for waterfront homes?  When it comes to stats, I tend to be quite reserved because I know the stats can be manipulated to tell any story or prove any point.  There is no way to spin these numbers –or lack of them.

By and large home prices (single family residential, or SFR) on Miami Beach have not come down.  I attribute the lack of activity in the SFR to a few things:

1. Prices have come down but the sellers

  •     have not realized it
  •     have no financial pressure to sell
  •     don’t want to realize it

2. Lack of mortgages.  SFR is more dependent on the ability to obtain mortgages (as opposed to luxury Miami Beach condos; which are mainly purchased cash).  Many of the buyers for SFR homes, say under $7M, need or want mortgages.

From the 2009 real estate sales of waterfront homes on Miami Beach, it is clear where the new market is.  No matter who you are, or what you own, everyone is gonna get a haircut.

Here are some of the best waterfront deals in Miami Beach:

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