Miami Real Estate – November 2009

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Summary – November 2009

For the month of October 2009 versus October 2008, the total number of closed sales increased over 100 percent, which is consistent with the upward trend in sales volume this year. However, the number of closed sales for November 2009 versus October 2009 remained flat. Another noticeable trend is that demand has remained somewhat constant these past few months, while at the same time, the inventory of properties for sale continues to shrink. If this trend continues it may result in less downward pressure on home prices, which would allow for the market to stabilize in the coming months.

In the city of Miami Beach there are significant sales price differences depending on location. With several sales in the $50 to $60 per square foot ["PSF"] range, the prices of condominiums in the north Miami Beach area [71 Street north to 84th Street] remain severely depressed. Whereas, the sale price of condos in good locations within the South Beach market, indicate a floor on pricing in the range of $250 to $350 PSF. This month, the Floridian condominium project located at 650 West Avenue in Miami Beach, had a record number of five distressed closed sales. Closed sale prices ranged from a low of $214 PSF  [unit 1806] to a high of $407 PSF [unit 2603].

In downtown Miami, or Brickell District, the average asking and closed sale price was significantly higher than the prior month. This was partially due to the sale of several luxury condominiums in the Jade on Brickell, Epic and Santa Maria, in addition to, a pent-up demand for affordable condos. The demand for condos in the downtown Miami area remains very high, which is supported by the fact that the average days on the market for the closed sales this month was only 61 days, a very healthy number.

There were also a few condo projects where the majority of the sales where located, including The Madison Downtown, Quantum on the Bay, One Miami, and the Club at Brickell Bay. While the sale of foreclosure units in The Madison have been hovering at a closed sale price of $100 PSF, there were also several sales with financing in the range of $160 to $170 PSF, which represents a significant premium for financing.

The majority of the transactions within the condo segment continues to be mostly to all cash buyers, with only select purchasers obtaining conventional, foreign national or FHA financing. However, in the single family home segment, the vast majority of transactions are to primary residence purchasers that are successfully obtaining financing at very attractive rates. As existing home owners are adjusting to market prices, there were few distressed sales of single family homes in the areas of Miami Beach, Coconut Grove and Coral Gables.

November’s Featured Sales:

450 Alton Rd, Unit 1806, Miami Beach

The sale of this 1,452 square foot, two bedroom, two bathroom, luxury condo in the Icon South Beach at price of $500,000, or $344 PSF, represents a significant price decrease in this “iconic” building. The former owner paid a price of $1.3 million for this property back in 2006. At that time, the buyer obtained 100% financing from American Brokers Conduit in the form of a $1.0 million first and $300,000 second mortgage. This was a short sale and the lender took a significant loss to approve the sale.

4949 Pine Tree Drive, Miami Beach

This magnificent estate was the former home of S.S. Kresge, the original founder of K-Mart. This 11,638 square foot home sits on a huge 2 acres corner lot in a prime Miami Beach location and features over 670 square of water frontage. The estate also features a clay tennis court, Venetian swimming pool, four car garage and guest house. According to public records, the home was sold to William H Dean, the current CEO of M.C. Dean Inc.,  for an all cash price of $8.0 million, or $687 PSF.

Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

Copyright © Miami Angel Properties, LLC

* The data used to generate this chart/data is gathered from the Multiple Listing Service (“MLS”) and the Miami Dade Clerk of the Courts. The data in the MLS is deemed reliable but not guaranteed. This data is for November 2009 for single family homes, unless otherwise indicated as condominiums/town homes. The prices are the actual sales prices of all single family or condos/town homes that closed during the month of November 2009 and are published in the MLS as of the date of this post.

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