With the temperature playing haywire in the rest of the country and the pandemic causing a trail of destruction in terms of the real estate market crash, the only place enjoying a relief is South Florida, especially places like Miami Beach. Real estate has always been a twitchy creature; when you think you have a hang of it, it runs off with its prices and properties and leaves you astounded. But, suddenly, homes in Miami Beach are again in the realm of investment in 2021 and even through the upcoming new year.
A Favorable Time for the Market
Where the whole country has suffered in partial lockdowns and restrictions on indoor dining, entertainment, sports, and gathering restrictions with no end in sight, Miami has remained relatively unaffected. Adding to that, an open economy, fewer masking-based restrictions, relatively low covid-19 case counts, a booming remote work scene, stable politics, and no state income tax, and it might be easy to think that Miami Beach’s recent real estate booms could have been predicted. Yet, few have succeeded in doing so. Like anything that has happened throughout the pandemic, it all was so fast. South Florida realtors and developers have learned to be cautious of the bubbles since they know what it‘s like to be on the other side. However, more eye-turning than what buyers are willing to pay right now is what the market reveals about the buyers themselves and the factors driving them.
Real Estate Market in Miami Beach
Beyond the anecdotes and records being smashed, the real estate data are becoming hard to fathom, no matter how cynical one might be about the Monaco-Esque vortex that South Florida is evolving fast into.
A Q4 Miami report produced by luxury brokerage RelatedISG tells the same story. Total active single-family home listings in Miami-Dade hit a twelve-year record low at the end of 2020, with only a few homes across all price ranges, compared with many homes sometime around 2015. Year over year, single-family home sales above $5 million have surged 225% in Miami Beach, with an average closing price of $10.4 million.
As per RelatedISG’s report, even the condo market has become a needle in a haystack. It may be due to the scarcity of single-family homes, particularly in low-density boutique buildings where in-house amenities like pools, gyms, spas, and business and social lounges offer more opportunities to rest and allow space and distancing. Most newer developments are now 90% to 100% occupied or sold, and condo transactions accounted for almost 50% of residential sales. It is a nearly 100% increase since 2020, and as a result, new buildings that are still just piles of dirt and weeds and years away from delivery are pre-selling out within 30 days of launching.
As per a report by zerodown.com, there were 24 new listings in North Miami Beach, of which ten were sold with a median sale price of $395,000 and $per sqft in North Miami Beach at $295, which means that the median price per sqft for homes in decreased by 19.59% over the past 12 weeks. There were 138 new listings last month, and 34 sold out, meaning the number of new homes coming on the market each month has increased, whereas the number of homes sold decreased over the past 12 months. Homes are selling in North Miami Beach for 0% below the list price.
Bring on NB Elite Realty as a Partner
We at NB Elite Realty have a clear vision of the Miami Beach Real Estate Market and can advise you on buying properties here. If you are looking to buy real estate in Miami Beach and need help deciding which zip codes or neighborhoods best fit your criteria, please ask us. We can help you find the best properties to meet your real estate requirements.
Contact an NB Elite Realty representative on 844-444-6237 today and have a chat with them about your concerns and what would be the ideal solution for them.