The national and international financial headlines have taken a markedly negative tone lately- with widespread reports of a slowdown in the overall economic recovery and especially the housing market.  However, for PREMIER "A" location waterfront properties, such as Miami Beach waterfront condominiums and homes, the story is perceptibly different. 

I have personally witnessed and worked in putting three deals together in the past month.  Due to the ongoing activity of international and cash buyers, Miami Beach's real estate market has been insulated from the national drop-off in sales of the past few months.  The vast majority of my clients are not eligible for a tax credit, so their interest in purchasing real estate didn't taper off after the benefit expired at the end of April.  The national drop-off in demand generally comes from the lower-end price spectrum buyers who rushed to get in on the tax credit deal.  In the two months since the tax credit expired, pending sales in Miami-Dade and Broward Counties have fallen 2.6 percent, according to the Realtor Association of Greater Miami and the Beaches. 

However, what I'm seeing and personally experiencing are that financially strong international buyers keep coming into the Miami Beach marketplace.  They're especially attracted to the South Beach waterfront real estate market due to the substantial price reductions that we've seen from the market high's of 2006.  The inventory of significantly PRICE REDUCED waterfront condos and homes in areas such as South of Fifth Street in South Beach, Palm Island and Hibiscus Island, the Venetian Island chain, Sunset Islands, and even Star Island is extremely limited.  The most important criteria to keep in mind for future pricing trends is INVENTORY- in South Beach most especially, the inventory levels for waterfront properties continues to DECLINE.

The Latest Ultra-Luxury Waterfront Example of This Trend:

Address:  55 Palm Avenue, Miami Beach, FL 33139

This unique and impecabbly restored Spanish Colonial Palm Island Estate has over 12,000 SF of interior space, with over 100 linear feet of waterfront on Biscayne Bay.   Featuring 12 foot Cathedral ceilings, Bulthaup kitchen, an interior courtyard, incredible backyard with Gazebo & pool.  Incredible Views of the Intracoastal and the MB skyline plus much more. 

Sold Price: $11,900,000 (498 Days on Market)
Original “For Sale” Price : 15,500,000 (1/2009)
Bedrooms: 8
Bathrooms: 11
Interior S.F.: 12,184 ($976/SF)
Total Land S.F.: 30,000 ($396/SF)
Closed Date: June 16, 2010
Reduction in Sales Price (from Asking): 23%

For those who would like to read more on the latest sales trends:

Read more: http://www.miamiherald.com/2010/07/01/1711497/home-sales-in-s-fla-buck-trend.html#ixzz0sWswLfB7

The month of March is an exciting time for local events in and around Miami Beach!  So far in 2010 we've been seeing strong tourist traffic for events such as The South Beach Wine and Food Festival, the upcoming Winter Party Festival the culminates in a massive beachfront fund-raising party right off 12th Street and Ocean Drive.  In addition to being an important fundraiser, the Winter Party Festival is also a major contributor to Miami and Miami Beach's economy, this year the local Miami Beach tourist Board is expecting over 10,000 people from around the world!

Also, the 2010 Winter Music Conference will be taking place in and around Miami and Miami Beach from March 23 -27.  During the week, there will be over 400 parties held at dozens of venues and outdoor spaces.  This is the 25th year that this amazing music conference takes place, and each year the event attracts more visitors and the hottest music talent on the planet!

In the past few months, we've also noticed a strong increase in buyer traffic for Miami Beach's hottest real estate.  For example, we just had a young (and famous) Brazilian client of ours purchase in one of Miami Beach's most popular waterfront condo buildings- The Murano at Portofino.  This building happens to also host a variety of VIP events at the world-famous Piaggia Beach Club, which is located on the southern side of the main entrance.

Key Facts:
Murano at Portofino South Beach (Intracoastal & Fisher Island Views)
Pending Sales Price: $900,000
2009 Tax Assessed Value: $766,000
Previous Sales Price (2005): $975,000
Bedrooms: 2
Bathrooms: 2
Condo S.F.: 1,390 ($647/SF)

Interior Decor / Overall Condition:  Beautiful decorator-appointed finishes

Note that the tax assessed value is significantly lower than the pending price. This pending sale demonstrates the resilient market value of premier condos located in luxury waterfront buildings in South Beach.  If you are potentially looking to purchase, NOW is the time to take advantage of this buyer's market.  We're seeing strong buyer activity from those looking to become a part of the amazing lifestyle that Miami Beach has to offer!

I am an optimist and expect us to have a bright and active future marketing and selling Miami Beach single family homes to both to international and domestic buyers looking to own a piece of paradise.  Following up from our last sales update regarding the overall trend in terms of prices and pending sales trends for Miami Beach (South Beach area) for January, 2010:

Some local Miami Beach perspective on this latest sales trends for zip codes 33139 and 33140:

55% of the homes sold in January in Miami-Dade County were priced under $500,000 and these homes that sold were actively on  the market for an average of 30 days.

Price trends at the lower end of the market have been positive, with the latest closed sales showing flat pricing, and in some cases a slight appreciation in neighborhood values.  However, in the higher price ranges (over $500,000), we are still seeing weakness in demand and no decline in supply of new inventory. 

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

• - Under $500,000: eight-month supply of homes
• - $300,000 to $1 million: 21-month supply
• - Over $1 million: four-year supply

Miami Beach’s luxury housing market falls into mainly in the over $500K category, however, the supply is much more restricted due to the fact that these are islands communities.  Also, since there is no new construction taking place, I continue to expect Miami Beach's housing inventory to slowly work it's way down to a healthy six to nine month supply for the luxury segment of the market.

Miami Beach Housing Inventory:

• - $300,000 to $500,000: less than six month supply
• - $500,000 to $1 million: 15 month supply
• - Over $1 million : 24 months supply

As I speak to an ever-increasing number of motivated sellers as part of my daily/weekly round of listing appointments, I continue to emphasize to everyone that there is NO room in the local housing market for overpriced listings. The strongest demand continues to be for turnkey (completely remodeled & finished) waterfront and non-waterfront homes that are priced RIGHT!  The issue today is not so much the current inventory levels of unsold homes, it's the expected supply of NEW Miami Beach unsold homes that are expected to come on the market in the next few years.  I personally know of quite a few sellers that have kept their homes off of the active market waiting and hoping for the market to "turn around". 

To view latest Miami Beach sales data, click here.

* Data Sources: MLS & Miami-Dade Public Records

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!