Are There Steals in Sobe? It Depends..

I am constantly asked questions about the state of the Miami Beach condo market. It has become almost a hobby for people to follow and potential investors and buyers to salivate over. The good news is that there are definitely steals out there, but it depends on your price bracket. Before I get into the overall results of all condo closed sales in the most recent 30 days in South Beach, let’s take a quick look at two polar opposites.

The first is a resale of a unit in the 1200 Mirador building on West Avenue. This one bed one bath, 970 square feet property was purchased for $291,900 [$301 per square foot] from the developer practically three years ago following the conversion of the building. I clearly remember the masses of buyers lined up down the street and people actually camped out to purchase a unit, it was mayhem on West Ave. This unit just sold for $186,000, or $192 per square foot, representing a sweet discount of 36.3%!

The second is also a resale of a unit in the Continuum in the SoFi district. This three bed three bath, 2,954 square feet property was purchased in late 2005 for $2.9 million, or $981 per square foot. It just sold for $3.96 million, or $1,341 per square foot, an amazing 26.7% increase in value. Fair enough, these are two totally different animals. However, the history and prices of both of these properties is very consistent with the market at the moment.

All of the high-end units with prices over $1.0 million that sold in the past 30 days indicated very significant increases in value. This includes properties in the Continuum, the Icon, the Setai, Murano at Portofino, and Pallazo Del Mare on Fisher Island. More significantly, none of the 11 units that traded this past month were distressed sales and they averaged 161 days on the market. Now let’s compare this to the lower price bracket with sales under $500,000.

In the less than $500,000 bracket, there were a total of 48 sales, with 119 average days on the market, and sold for an average discount of 12% from asking price, or $324 per square foot. Of the total of 48 sales, fourteen units were either bank-owned, pre-foreclosure or short sales, a whopping 30% of the total! When comparing the distressed versus other sales, the results are very similar in average discount over asking price, however the distressed properties are spending less time on the market, with an average of 85 days.

I think that if you are looking for a steal or foreclosure bargain in the higher-end of the market that you are going to have to be very patient and diligent in your search. Alternatively, on the more affordable side of the South Beach market, get your cash ready and start building a relationship with your realtor.

There are deals out there!

* Source: Southeast Florida Multiple Listing Service

SoBe Home ~ Call 305.673.5300

RENT: $6,750 / month **RENTED** $6,400 / month

Description | Escape to your own private gated home on the Venetian Islands, and just a stones throw to South Beach, the Design District or Adrienne Arsht Performing Arts Center.  With your own pool, spa, gourmet kitchen, and a cleaning service; your family will live like the superstars you’ve always dreamed of.

Address | 114 1 Rivo Alto Terrace

Property Type | Single Family Home
Year Built | 1941
Living Area | 2,088
Bedrooms | 4
Bathrooms | 2.5
Waterfront | N

Download a full description (PDF):

114 1 Rivo Alto Terrace (Right click the link and choose “Save link as”)

Results in Murano at Portofino

It is our pleasure to announce the successful completion of the sale of a 2 bedroom “05″ unit in the Murano at Portofino, which is one of the most sought after luxury high-rise condominium buildings in Miami Beach. Miami Angel Properties was hired by the seller to market and sell the unit specifically to out-of-state and international buyers. The new owner, a finance professional out of New York City, was an all cash buyer and paid a very respectable $883 per square foot for the unit.

“This sale represents the continued demand and success of many luxury high-rise buildings in Miami Beach,” stated Ross Milroy, managing broker of Miami Angel Properties. “Our clients remain bullish and the facts support the strength and value of certain luxury high rise condominiums, including the Murano at Portofino, the Icon, the Setai, the Continuum, the Apogee and others in Miami Beach,” he continued. “While the lower end of the condo market continues to be challenged with oversupply, short sales and foreclosures, the luxury condo market with prices over $1.0 million continues to show tremendous upside!”

This sale of this unit was achieved in just over 100 days, versus the average of 161 days for properties in this price range. This attests to the commitment, marketing plan and hard work of the Miami Angel Properties team.

For further information on this sale, or to discuss your needs, please do not hesitate to contact us at (305) 673-5300 or via email to info{at}miamiangelproperties.com.