Miami Beach Real Estate - Recent Sales Indicate Housing Market Bottom

Miami Beach waterfront homes and luxury properties are limited in supply, and with most major financial news experts announcing a “housing bottom”, I’d like to take the opportunity to show how two recent sales in Venetian Islands and Biscayne Island of Miami Beach indicate the conclusion.

Turnkey Home in the Venetian Island

This waterfront home in the Venetian Islands has stunning, direct, Downtown Miami and bay views. With 3,586 square foot of property, this home was renovated with 3 bedrooms, a great kitchen, media room and maid’s bedroom/bath. Facing west, with pool, boat dock and 60′ of waterfront.

Key “Market Bottom” indicators:

“For Sale” Price: $3,200,000 (20 days on the market at this reduced price point)
Original List Price : $4,200,000 (May, 2009)
Discount from Latest Asking Price: 12.5%
Previous Price Reduction: $3,400,000 (June, 2009)
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,586
Land S.F.: 10,500
Asking Price per S.F.(Land): $304
Previous Sold Date: 2004 ($2,225,000)
Closed Price: $2,800,000 (August 11, 2009)

Biscayne Island- Wide Bay Fixer Upper

Opportunity to complete the remodeling of this Spectacular Waterfront residence located on the Miami side of the Venetian Island chain. The new owners will enjoy the Panoramic water views of a home located on a 15,000 lot.

Key “Market Bottom” indicators:

“For Sale” Price: $2,137,500 (5 days on the market at this reduced price point)
Closed Price: $2,030,000 (July 16, 2009)
Original List Price : $6,7500,000 (February, 2007)
Previous Price Reduction: $2,500,000 (March, 2009)
Bedrooms: 3
Bathrooms: 4
House S.F.: 4,010
Land S.F.: 15,000
Asking Price per S.F.(Land): $142
Previous Sold Date: 01/2007 ($5,350,000)

Discount from Latest Asking Price: 5%

If you’re a potential seller of waterfront real estate in Miami Beach and cannot hold on to your property because of negative cash flow (probably if your housing expenses total more than 31% of your gross income), the smart approach is to price right. Working with a knowledgeable, honest, and experienced sales agent is the key here, and the price needs to be based on the last three to six months of closed sales. My team and I have experienced that Miami Beach waterfront properties- whether they are single family homes or condos which are priced RIGHT have multiple offers and sell quickly.

If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value). My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years. There are many reasons why we can expect to see an initially FLAT and then GRADUAL price appreciation for Miami Beach’s real estate market for several years. Times have indeed changed, but the opportunity to purchase a discounted PRIME waterfront single family home or condo is now!