I'd like to take this opportunity to explain why I moved to the South of Fifth Street neighborhood in Miami Beach in 2002 when the area was still up and coming:

I love living in Miami Beach's South of Fifth (SoFi) district due to the amazing variety of restaurants, small shops, and the spectacular waterfront buildings in the area.  The most sought-after and popular waterfront condominium buildings include The Continuum North and South Towers, Icon South Beach, The Murano at Portofino, The Portofino Tower, Apogee, and The Murano Grande.

A few of my personal favorite restaurants include Joe's Stone Crab, DeVito's (owned by actor Danny DeVito) with incredible Italian cuisine, Fogo de Chao Churrascaria, Texas de Brazil, Prime 112, and Smith & Wollensky steakhouses.  The SoFi neighborhood also has a variety of other attractions which make this a self-contained community that is also surprisingly family-friendly:

* The South Pointe Elementary School - an "A-rated" K-6 public school.  This school and local parents collaborate on field trips, art shows, book fairs, festivals and lots of practice for the FCAT (Florida Comprehensive Assessment Test).  Many of my clients who have recently moved to the area are surprised by the diversity and quality of this local elementary school located just across the street from the Murano Grande and Icon South Beach buildings.

* The recently refurbished South Pointe Park, with an incredible light display, walking paths, and cascading water fountains facing towards Fisher Island and cruise ship alley which leads to the Atlantic Ocean. To walk the length of this park (especially as the sun sets) is an experience that I highly recommend to all who visit Miami Beach. 

* The Miami Beach Marina, which is located at 300 Alton Road, just South of Icon South Beach and the Murano Grande has a deep sea diving center, a gourmet gourmet food market, and local favorite Monty's restaurant. The marina also offers Pinky's Parasail rentals and American Watersports Jet Ski rentals, the Tarpon Lagoon Dive Center (classes and dive trips), power boat rentals, yacht charters, sailfish tournaments, poker runs to the Florida Keys and, once a year, the Columbus Day Regatta sailboat race.

The other local favorites in South Beach's South of Fifth district include: 

• Nikki Beach Complex at 1st and Ocean Drive, with two restaurants, two nightclubs, and a beachfront setting with huts. A little known fact is that the Nikki Beach complex also contains a beautiful beach access (open to the general public).
• Red the Steak House, with a beautiful oceanview rooftop scenery, 
• The brand new French gourmet restaurant with beautifully classic French interiors Au Pied de Cochon, 
• The Taverna Opa restaurant across the Street from Nicki Beach Club for Greek food and table dancing at night!, 
• China Grill right on the corner of Fifth and Washington Avenue, 
• Locals favorite Clarke's, which is a neighborhood pub with excellent casual lunch and dining menus, 
• La Piaggia Beach Club, adjoining the Murano at Portofino with a saltwater pool and great mojitos, 
• The Sofi Salon and Spa where many of our locals go to pamper themselves, especially before a weekend night on the town
• There's even a local public library branch located at 131 Alton Road (South Shore Branch)
• The Portofino Wine Bank, located right underneath the Portofino Tower, which has a large selection of domestic and imported wines, beers, and liquors.
• Spa 101 located right next to The Bentley Hilton Resort, and at the same address a private club called the Bentley Beach Club, as well as the restaurant Gaia
• The new Alton & 5th Street Shopping complex (of course located right on the corner of 5th Street & Alton Road) which has a Publix & Greenwise (all-natural products) super market, Best Buy, Petsmart, TJ Maxx, and Ross Dress for Less, and Staples discount stores.

Recently, The increase in sales of homes in the US has beocome the topic of many articles in the newsmedia, which also led to a spike in the stock market just before the Thanksgiving Holiday. Miami Beach, one of the first markets to crash, has also seen increase in home sales. I'd like to take this opportunity to put a local perspective to this latest trend in sales:

75% of the homes sold between August through October in Miami-Dade County were priced under $300,000 and 23% of these sales were for homes listed under $100,000.

Price trends at the lower end of the market have been positive, however moving into the higher price ranges, those are areas that we are still seeing weakness.  Typically, when the supply of homes for sale stands at a year or more, prices tend to fall. With a six- to nine-month supply, prices remain flat. When the supply drops below six months, sales activity begins to spur price appreciation, as it has for recent home sold and priced under $100,000.

Below is sampling of the supply of houses listed for sale in Miami-Dade in October, according to the MLS:

• Under $100,000: four-month supply
• Under $300,000: eight-month supply
• $300,000 to $1 million: 21-month supply
• Over $1 million: four-year supply

Miami Beach’s luxury housing market falls into the upper end category, however, the supply is much more restricted due to the natural barrier (island community) limiting further supply.  Also, virtually no new construction is currently taking place, so we’re experiencing a decline in inventory levels for Miami Beach’s 33139 and 33140 zip codes:

• $300,000 to $500,000: less than six month supply
• $500,000 to $1 million: 14 month supply
• $1 million to $2 million: 18 month supply
• Over $2 million: 23 month supply

The conclusion from the above referenced data – there is no room in the Miami Beach housing market for overpriced listings. The strongest demand is for turnkey (completely remodeled) homes, where the new owners do not have to make an additional investment into the property.

To view latest Miami Beach sales data, visit our Miami Beach Real Estate website

* Data Sources: MLS & Miami-Dade Public Records

The vast majority of the REAL buyers that we are working with today are looking to purchase deeply discounted single family homes in prime locations on Miami Beach.  These types of homes are in limited supply, as most of the island communities in Miami Beach have a very finite supply of non-waterfront homes that are in good condition.  The most desired communities consist of Palm, Star, Hibiscus, The Venetian Islands chain, North Bay Road area, LakeView in Miami Beach, the La Gorce Golf Course area, and Pinetree Drive area homes. 

In the past two weeks, we've been working with offers for non-waterfront homes that fit into the above mentioned category.  One of our clients just missed out on a well priced sale, just off of the La Gorce Golf course community in Miami Beach.  Details of this latest sale:

Address:  5601 North Bay Road, Miami Beach, FL 33140

Comments:This home is located on a corner lot in the upper North Bay Road area of Miami Beach.  Completely turnkey with stone flooring, three bedrooms, circular driveway, beautifully landscaped property, two car garage, and hurricane shutters throughout.  The house even has a bose sound system and an insect protection system!  The buyers can move in, with no additional investment required.

Sold Price: $975,000
Original “For Sale” Price: $1,595,000 (1/2008)
Bedrooms: 3
Bathrooms: 3
House S.F.: 2,648
Land S.F.: 7,850
Sold Date: November 5, 2009
Discount from Original Asking Price: 39%

Noteworthy: The correct (and reasonable) asking price of $1,295,000 was changed on September 10, 2009, and the house went under contract via cooperating broker on September 30, 2009.  Once again, the key take away is for sellers to price their homes accurately in order to get a qualified buyer and sell!

A few month's ago, Jim Cramer (from the financial network CNBC), predicted a housing market bottom. For anyone considering buying a waterfront property in Miami Beach, and most specifically in South Beach. NOW is the time to be making offers on well priced Miami Beach homes or condos in premium waterfront buildings.

Cramer’s Key Points:

    * Inventory is drying up & being steadily being absorbed
    * Housing starts have been down for over two years
    * New construction projects stopped two years ago
    * Florida is generally one year ahead of market trends
    * Interest Rate cuts have had a positive effect in absorbing excess inventory (at much reduced prices)

Miami Beach single family homes (especially waterfront luxury homes) that are truly good deals continue to be in short supply. I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of a price bottoming trend:

Luxury Waterfront Island Home - 830 W Dilido Drive, Miami Beach 
Tropical paradise for that was on the market for sale for just 12 days at the final asking price of $2.9 Million.  Wide bay views at the north tip  of Venetian Islands.

Key “Market Bottom” indicators:

“For Sale” Price: $2,950,000 (12 days on the market at this reduced price point)
Original List Price : $4,700,000 (July, 2008)
Previous Price Reduction: $3,450,000 (January, 2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,734
Land S.F.: 13,408
Closed Price per S.F.(Land): $194
Closed Price per S.F.(House): $698
Previous Sold Date: 2004 ($3,150,000)
Closed Price: $2,610,000 (Sept 2, 2009)
Discount from Latest Asking Price: 11.5%

Property Address:  25 East Rivo Alto Drive in Miami Beach, Florida 33139
Rivo Alto Island Waterfront Home – Completely Remodeled.  Located on the preferred southern side of the Venetian Islands. This Mediterranean delight greets with a beautiful courtyard setting reminiscent of a European Villa. The sale also included a separate two story adjacent guest house.

Key “Market Bottom” indicators:

“For Sale” Price: $2,590,000 (19 days on the market at this ACCURATE price point)
Bedrooms: 4
Bathrooms: 4
House S.F.: 3,894
Land S.F.: 13,382
Closed Price per S.F.(Land): $175
Closed Price per S.F.(House): $740
Previous Sold Date: 1998 ($950,000)
Closed Price: $2,350,000 (Sept 1, 2009)
Discount from Latest Asking Price: 9.2%

As Real Estate sales specialists in waterfront properties in Miami Beach, what we’re seeing is waterfront and non-waterfront single family homes that are priced RIGHT receive multiple purchase offers and are selling relatively quickly close to the final asking price.

The former Miami Beach summer home of the late S.S. Kresge (original founder of K-mart) located at 4949 Pinetree Drive and designed by world famous Architect, Carlos Schoppel is facing foreclosure.  According to our local ABC affiliate WPLG, it is scheduled to be auctioned later this month.  In its heyday, this palatial Miami Beach waterfront estate was one of the premier single family estates in all of Miami Beach.

The 6-bedroom, 6.5 bath, 8.500-square foot home is set on two acres on Pinetree Drive and is currently listed for sale for an asking price of $9,500,000. It has a Venetian pool, guest house and all the luxuries money can buy.  A true, one-of-a-kind estate featuring the largest water frontage of 670 ft. available in Miami Beach. Clay tennis court-wine cellar-marble flooring-Venetian tiled swimming pool w/2 private cabana's-2 detached guest house's-4 car garage-expansive meticulous grounds w/ marble fountains.

The estate has been owned by a former Developer's widow, who lost her husband in 2001.  This is a sad case of what appears to have  been predatory lending practices during the height of the real estate boom.  The homeowner took out a loan on the estate that ballooned to a $50,000 monthly mortgage payment.

UPDATE:  Property is still listed for sale on Multiple Listing Service for $9,500,000

The Caribbean Condos in Miami Beach have been on the market since 2006, and have been sitting mostly vacant for the past year. The lender, Corus Bank (Chicago based), has recently sold the construction loan on the completed luxury condominium project located at 3737 Collins Avenue.

The original developers of The Caribbean Condominiums are Bluerock Real Estate and Christa Development, under a joint venture formed during the the height of Miami's housing boom. The developers obtained a construction loan of over $100 Million from Corus to convert the 103-unit oceanfront condominium at the peak of the housing boom in 2005. The proejct was completed in July 2008, just as the housing and financial markets crashed.  We have been informed that only 13 units managed to close from the original buyers who contracted during the original sales period.

The new debt holders of the project will be 3737 Caribbean Partners, affiliated with Melohn Properties, an investment group from New York. Property records show the developer, Caribbean Group Owner, paid back portions of the loan after selling the 13 units that closed at prices ranging from $2.8 million to $1 million.  It is believed that the rights to re-sell the remaining units were acquired for around $50 Million.  If this is accurate, the new owners paid just over $500,000 per condominium for the remaining inventory. 

I believe that this is good news for the Miami Beach condominium market, as nearby Oceanfront properties such as MEi Miami Beach, The Bath Club, and Canyon Ranch are selling today for around $550/S.F.  These are more indicators of a market bottom, especially for PRIME waterfront properties located in Miami Beach.  There is virtually no new construction being undertaken today, and waterfront properties in Miami Beach are protected by city ordinances and Art Deco architectural protections severely limiting what can be built in the future.  It's encouraging that large institutional buyers are stepping up and acquiring the rights to sell these prime oceanfront development, at what will probably be discount pricing.

Currently, we are seeing discount pricing up to 50% off pre-construction sales prices from 2005 - 2006.   Our expectations are that the Caribbeancondominiums will be selling quickly if they come to market at around these price points.  The Caribbean is a luxury condominium building located directly on the Ocean in Miami Beach. Miami architect Kobi Karp designed the 19-story, 68-condo tower located just south of the historic Caribbean hotel. Architect L. Murray Dixon designed the six-story historic building in 1941, which was completely renovated and consists of 35 ultra luxury condos.