Biscayne Real Estate

Single-Family Homes Market Update - Dec 2019

Kendall, Miami Shores, and Coconut Grove have their inventories of unsold single-family homes at the lowest levels in the last 12 months. It would take merely 4.3 months to sell 153 active listings in Kendall, 6.4 months to sell 88 listings in Miami Shores, and 10.2 months to unload 169 listings in Coconut Grove. There is a different consensus on what constitutes buyers' or sellers' market but in our opinion, the range 8-12 months indicates the market-neutral field. Inventory short of 8-month supply indicates sellers' market and over 12-month of homes supply points to a buyers' market. The largest inventory increase has taken place in Key Biscayne where 121 active single family listings would take 37.2 months to sell.

The largest increases in median sale price year-over-year have taken place in Miami Beach with 12.6%, followed by Upper East Side with 5.1%, and Palmetto Bay with 3.7%. Even more impressive is the trailing 3-month data (2019 over 2018) for Miami Beach: Median sale price is up 57.2% from $1,270,000 to $2,004,500 and average price per square foot 22.9% which grew from $704 to $865. This surge is due to the record number of high price sales in the last 3 months: of the 46 closed sales, 50% of them sold over $2M, 19.6% over $5M, and 10.9% over $10M.

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Brickell Condominiums - Graph below depicts a 12-month historical average prices of sold condominiums on per square foot basis in Brickell neighborhood. Condominiums were sorted into 3 groups based on their year of completion - red color for buildings built before year 2000, blue for buildings built between 2000 and 2015, and green for those less than 3 years old. Overall difference in pricing over a this period is 12.4% between red and blue group and 48.2% between red and green group. This translates to about $170,000 premium if you purchase a 1,000 SF condominium which was built in the last 3 years versus a building that was built before year 2000.

Miami Condominiums Snapshot - The highest increase in median sale price from 2017 to year-to-date 2018 has been in Coconut Grove (14.2%) followed by Sunny Isles (9.6%). Brickell (also see the graph below) and South Beach have remain flat and the largest drop has been observed downtown Miami (9.9%). The largest inventory build-up is currently in Sunny Isles and Edgewater/ Midtown areas, both with 32.5 months of units inventory. The lowest inventory levels are in Coconut Grove with 15.2 months. Compare this number with our last Single Family Market Snapshot in which East Kendall has merely 4.9 months of available inventory.