Q2 2021 was characterized by a continued increase in record making sales prices, sales volume, and near record-low listing inventory. Below we will explore each segment of the Miami Beach real estate market by comparing year over year price trends.
SINGLE FAMILY HOMES
Average sales prices per sq.ft. rose to a new record for the fourth consecutive quarter, now at $1,117. Listing inventory fell to its lowest on record at just 301 properties for sale, with an absorption rate of just 3.1 months, marketing the fastest pace in over a decade. All price trend indicators including median sales price, number of sales, and volume set records.
LUXURY SINGLE FAMILY HOMES
The average and median sales prices nearly doubled on a year over year basis. The average luxury single family home sales in Miami Beach jumped to an astonishing $16,219,303 from $8,584,732 in Q2 2020, now averaging $2,036/sq.ft. The number of sales significantly increased as well, up 234% (YoY) along with a massive decrease in absorption rate to just 7.2 months. Despite the high figures, listing discounts remain prevalent, somewhat due to overpricing. Off-market transactions are becoming more commonplace as are land sales with spec homes proposed.
6365 Pinetree Drive Circle, a mediterranean home featured countless magazines, sold for $19,000,000 earlier this year. It went through a minor update both inside and out, and was recently a pending sale at its last asking price of $32,500,000, representing a 71% premium. My firm, Coldwell Banker Miami Beach, has the listing.
CONDOS
Similarly, condominium price trend indicators rose sharply to new records for the second consecutive quarter. The number of sales topped 2,100 while the months of supply decreased to just 4.6 months, from 41.4 one year prior. Listing inventory is down sharply to just 3,233 apartments. The median sales price toppled previous quarterly records and now sits at $540,000 while the average sales price this quarter was $1,217,890.
LUXURY CONDOS
Luxury condo sales supply dropped over 90% from last year to just 7.6 months while the entry price threshold to this segment (top 10% of all sales prices) increased by 53.6% to $2,650,000. Listing discounts for luxury homes also remains high at 8.3% with an average days on market of 212. The median sales price this quarter was $4,512,500 representing an increase of 58% and similarly, we saw an average sales price of $6,053,396, up 56%.
SUMMARY
Sales activity continues to increase as we see one record breaking sale after another. Sellers could not choose a better time to sell than now but choosing the right agent will help them position the property correctly and not incur such large listing discounts at the negotiation table. Prices are currently benefitting from low mortgage rates which helps increase buyer purchasing power, the federal SALT tax pushing more New Yorkers and Californians towards Miami, and the larger, and quite possibly permanent, adoption of remote work.
WORK WITH A PROFESSIONAL
Having closed 26 transactions worth over $19,000,000 since the start of the Covid Pandemic, I know first-hand the pitfalls to avoid and the opportunities to seize for my buyers and sellers. Working with a seasoned professional who can handle the intricacies of complex residential transactions helps ensure you will get the property you want, for the price you want, and in favorable terms.
Reach out to me with any questions real estate related, and explore these services I offer.
