The real estate market in Miami, like anywhere else, tends to fluctuate based on a number of factors, including supply, demand, time of year, the economy and so many others. The combination of these factors helps determine whether it is a “buyer’s market” – meaning that prices are more favorable for buyers, or a “seller’s market” – which is more favorable to the seller.
One thing that has not changed, and likely will not ever change, is the amount of waterfront real estate in Miami. Waterfront real estate is both finite and highly desirable, so demand is always high, even in a down market. Further, because of demand, virtually no land exists to develop unless the existing structure is removed first. Knowing how to identify the right property or the value of land where a structure already exists is an important part of the real estate process.
The luxury waterfront market, which includes homes listed at more than $1 million, has remained relatively stable throughout 2016. During any one given month, there have been an average of 21 sales and 22 homes under contract. The average sales prices for homes asking at least $1 million tends to fall within the $3-5 million range, although certain notable properties can ask way more than that!
Buyers tended to pay between 78-88% of the original asking price, which means that buyers had some wiggle room when it came time to negotiate the final asking price. Further, homes averaged between 4-6 months on the market from the time it was listed to closing, which can be typical for luxury listings.
Available inventory in the luxury waterfront market has also been relatively stable, although there have been between 537 and 572 residences available during any given month in 2016, which means there is quite a bit of inventory on the market. Given such a large amount of inventory, it is especially important to identify the right realtor to help you find the perfect home, and if you are selling, to make sure your home stands out from the crowd!
Questions about Buying, Selling or Renting Waterfront Property in Miami?
Whether you’re buying, selling or renting, choosing the right real estate professional is of paramount importance.
If you have questions about the luxury waterfront market, would like to schedule an appointment to view one of my listings, or discuss listing your home or condominium, feel free to contact me anytime.