SoBeLuxuryHomes.com announces results of 1st Quarter 2010 Miami Luxury Homes Market Trend Report
SoBeLuxuryHomes.com
4/7/2010
SoBeLuxuryHomes.com announces results of 1st Quarter Miami Luxury Homes Market Trend Report
Sobeluxuryhomes.com researches sales data across 3 markets
Miami Beach luxury condos
Miami luxury condos
Miami and Miami Beach Single family residences
And across 3 price points
Chic Luxury, $500,000-$1,000,000
Super Luxury $1,000,000-$3,000,000
Ultra Luxury $3,000,000-UP
The most relevant conclusions to our 2nd quarter data are the following:
Inventory at different price points of the luxury market are still quite high. Reasons are many sellers in this market are not real sellers, which can be easily proven by looking at the discrepancy between listing price/SqFt and sales price/SqFt. A real seller would be price considerably lower and will sell in a decent time frame.
The $500K and under single family home market in Miami Dade County has over 11 times more distressed sales than the over $500K market in the same county. The under $500K condo market has over 30 times more distressed property than the over $500K market
Inventory levels were very similar in the low end market 18 months ago, that inventory has disappeared and many opportunities were lost in the under $300K home market. Inventory in that market is now at around 7 month supply on the single family home market (Miami-Dade County) and around 15 months on the condo market (Miami-Dade County).
Predictions, property prices in the luxury market have not bottomed, but that doesn’t mean that there is a lack of great deals on the market, for example we recently found a client of ours a 2 bedroom unit at the sought after Icon South Beach for $396/SqFt with direct bay views. If you compare this $/SqFt to comparable sales and the appraised value even with tough appraising standards is considerably over the sales price. These opportunities are only available because of the levels of inventory, once the inventory drops there will be less of these to come by.
Predictions, transaction volume have been on an upswing for over 18 straight months. As the low end inventory has been eaten up by cash investors alot of people that were on the fence have begun purchasing more expensive property with heavy down payments. We believe that by the end of the year the luxury market will see a substantial decrease of inventory.
