Miami Real Estate Monthly – Jan 2009

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Summary - January 2009

For the month of January 2009 vs. December 2008, we experienced an overall 20% decrease in the number of closed sales in Miami Dade County. This decrease in overall sales was most likely due to a typical seasonal dip that we experience in January each year. In spite of the twenty percent decrease, the actual total number of distressed sales, including bank owned properties or short sale, remained the same.

Just as we have similarly experienced in recent months, the percentage of overall sales that are either bank owned property or short sales, remains very high at 66.2% or two-thirds of total sales.  Our analysis of the past three months reveals that 55% of total sales were bank owned properties and 11% percent were short sales. This represents a major shift in the traditional marketplace as owners, lenders, banks, realtors, investors and first time home buyers, all have to adjust to conducting business in such an overwhelming distressed real estate market. As one client mentioned to me the other day, and I quote, “short sales are not for the faint of heart!” Good thing I mentioned that during our initial consultation.

What was impressive was the large number of sales of bank owned properties where the buyer actually paid more than the asking price, and in some cases, up to 30% more! We think that this is the result of a substantial increase in demand for properties in high demand locations at affordable prices, along with some hype in the general market. For example, one of our clients recently placed an offer on an oceanfront, one bedroom unit, located at 6917 Collins Avenue. The property had an asking price of $139,900 and had only been on the market for two weeks, however, there were already SIXTEEN offers on the table!

Featured Sales – Two Luxury South Beach Condominiums

Il Villaggio - 1455 Ocean Dr #1201/2, Miami Beach

According to public records, OI Property Holding Inc., a domestic Florida corporation, purchased this oceanfront condo in the the Villaggio on South Beach for an all cash price of $3,6 million. With a total living area of 2,910 square feet, this equates to a price paid of $1,237 per square foot. This magnificient condo combines two units with unobstructed views of the ocean, South Beach and Lummus Park. The previous owner, Guy Starkman, purchased the property in May 2002 for $1,5 million, at which time he received a first and second mortgage from Wachovia in the combined amount of $1,450,000. In other words, for a small downpayment of $50,000, or 3.3% of the purchase price, he was able to sell this fantastic property for a gain of $2.1 million within 7 years. Now that is a real estate success story!

Murano at Portofino – 1000 S Pointe Dr #3801, Miami Beach

With an asking price of $12 million, this magnificient one-of-a-kind penthouse in the Murano at Portofino finally sold after 714 days on the market for an all cash price of $7,450,000. This 4,784 square foot unit features two levels of living space, a second level with 300 degree views, and an elevator that lifts you into the Miami Beach sky to enjoy your own private terrace on top of the building. The international buyer was an investment fund out of Dublin in Ireland, called Bannagle Investments Limited. According to public records, the former owners Cecile and Patricia Barker, purchased the property in December 2003 for a price of $3,350,000. So the question really is, what would you pay for this view?

For any additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

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 January 2009 for single family homes, unless otherwise indicated as condominiums/townhomes. The prices are the actual sales prices of all single family or condos/townhomes that closed during the month of January 2009.

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