Miamism

The question of buying old or buying new in Miami Real Estate always comes up.  Some people have a misconception that because the South Florida Building code (SFBC) was updated in 2005, you should buy real estate built after that to make sure it's built right.

The South Florida Building Code

Well.....I could not disagree more.  Construction methods, through the years, have gotten worse and worse. Many Developers, in order to make more money, have found ways to cut corners and decrease the quality of construction.  The Building code many years ago was used as a minimum standard, but it got to a point that the same building code started being the top of the standard instead and contractors used it as a maximum.  In order to protect the consumer, that building code became stricter and so the change of the SFBC was inevitable.  Every time you complain about an inspector giving you a hard time and not approving a job done by a contractor, you should thank them instead, because they are there to protect you.

Sturdy Old Construction

Now that the building code question is out of the way I have to tell you that older established neighborhoods in Miami are known for their old construction.  From Miami Beach to Miami Shores, Coral Gables, Miami Springs....these neighborhoods were developed in the 1920's and their construction is as solid as it gets.  They have homes built in the 20's, 30's, 40's and 50's while Miami was evolving. These homes that have been there for at least ½ a century have withstood numerous hurricanes and most of them without even shutters!!   Please don't misunderstand this to mean that you don't have to get hurricane protection for your homes, it means that those old homes have lived through many storms with little damage and we can attribute that to the superior methods of construction of those times.

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This week's Miami Luxury Real Estate Pick is located in Miami Shores (my local stomping ground). It's not often that I point out new construction unless I absolutely believe in it and this happens to be one of those houses. Miami Shores was developed in the 1920's by The Shoreland Company and did an amazing job of urban planning which is one of the best features of Miami Shores. The setbacks and scale of the homes, the rear alley system, the width of the streets, sidewalks and tree-lined streets, is what makes Miami Shores the beautiful community that it is today, and not to forget the fact that we have so many fabulous Mediterranean Revival homes.

This home was buildt new in 2008 and no expense was spared - from commercial grade appliances to Cherry wood floors, but what impresses me the most is the grand scale of each room, with soaring ceilings and clean lines that were kept simple but at the same time elegant. The fact that the home respects the scale of the adjacent homes and its urban context is a huge plus in my book as well.

448 NE 96th Street - Miami Shores, FL 33138

Listed for $1,599,000

The MLS description reads as follows:

Unbelievable attention to quality and detail have come together to create this spectacular two-story newly constructed masterpiece located in the heart of Miami Shores, Florida. Ten foot ceilings, custom crown moldings, Cherry wood floors, camera security system, bose sound, formal dining and grand staircase are only a few of the extras to impress the most demanding buyer. Master bedroom boasts a private terrace overlooking pool and spa. Huge gourmet kitchen with Black Galaxy Marble counters, A must see home.

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The question of the day!! Has Miami Real Estate Hit Bottom??

Most of you that know us know that we are not the type to follow NAR's latest REALTOR bandwagon with "Now is the time to buy" campaign - we just don't see how a National Campaign of that magnitude can generalize about every real estate market since each one is so local in nature.

With that said, there are tell-tale signs that you, as a buyer, should be aware of:

• Investors buying

• Renters buying

• Sales Increasing

We have seen the numbers of Investor movement increasing at a drastic pace. Although we are also hearing the known phrase "Buy when no one else is buying"..... others are also catching on. These investors are not only local, but they come from other parts of the US, from Canada, Europe and South America.

We are also seeing those people that chose to rent 8 months to a year ago (because they wanted to wait for the market to stabilize), making their move now, or at least are beginning to consider to buy.

Miami Real Estate Sales have also increased and numbers don't lie. Here are some examples taking into consideration sales in the first 4 months of the year (from January 1st to April 30th) and the second third (which is not done yet) from May 1st to Today - August 16, 2008. You can see how sales are slowly creeping up.

• Miami Beach Real Estate - single-family homes
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    • First 1/3 of the year - 28 closed sales
      
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    • Second third of the year - 40 closed sales.

• Miami Shores Real Estate - single-family homes
  
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    • First 1/3 of the year - 26 closed sales
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    • Second third of the year - 35 closed sales

• Miami Real Estate - single-family homes
  
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    • First 1/3 of the year - 907 closed sales
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    • Second third of the year - 950 closed sales

• El Portal Real Estate - single-family homes
  
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    • First 1/3 of the year - 1 closed sale
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    • Second third of the year - 4 closed sales

• Aventura Real Estate - condos
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    • First 1/3 of the year - 208 closed sales
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    • Second third of the year - 266 closed sales

Please don't misconstrue this to mean that we are telling you to rush out right now and buy a property. The truth is that prices may keep dropping a bit in certain neighborhoods, but if you are looking for a long term Miami real estate investment, the signs of a stabilizing market are starting to show.

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Ines.Hegedus-Garcia 6 feedbacks »

This is a Miami Real Estate Market Report for the first 7 months of 2008.   It's a bit surreal that even after the media has stopped being negative and are now asking if the Miami Real Estate Market has hit bottom yet, some buyers want to hang on to "the power" and refuse to see the positive change.  We are seeing a lot of buyers now saying "This is the time to buy" thinking that we may have hit bottom.  One thing is for certain, certain markets are still decreasing in price so estimating the "bottom" is a gamble unless you work with a Realtor that is proficient in the area you are looking into.  I do these market reports on a monthly basis and you can go back to compare sales and real estate movement in prior months. Working with a Miami Real Estate Agent that knows the area is crucial to buying and selling real estate. 

Miami Shores Real Estate Market Report

There are currently 225 listings in Miami Shores: (2 more than last month)

• Highest priced listing is $3.5 million (bayfront home located at 1680 NE 104th Street)
  
• Lowest priced listing is $129,900 (corporate-owned and with multiple offers already)
• Pending Sales (Properties under contract):14 (5 less than last month)
  
• Closed sales in 2008: 57 (12 sales in July)

10 of those 57 Miami Shores Sales have been between $700,000 and $1 million.  9 sales between $500,000 and $700,000 and 38 sales under $500,000 - which identifies the price range under $500,000 as more popular in today's market.  The lowest sale this year in Miami Shores was for the home located at 31 NW 92nd Street which sold for $269,000 ($101,000 less than it was listed for on May 29th, 2007)

There has not been a sale over $1 million this year in Miami Shores, which tells you that the Miami Shores Luxury Real Estate Market has definitely been affected.

Bay Harbor Islands Real Estate Market Report

There are currently 23 single-family home listings in Bay Harbor Islands: (1 more than last month)

• Highest priced listing is $5,450,000 (10340 W. Broadview Drive - listed on and off since February 2006 - starting price of $6,850,000)
  
• Lowest priced listing is $575,000 (9970 E. Bay Harbor Drive - Villa - listed since Feb. 07 - starting price of $659,000)
  
• Pending Sales (properties under contract):1 (as compared to 0 last month)
  
• Closed sales in 2008: 1
  

The only closed sale this year was 10161 E. Broadview Drive which closed for $1,543,500 on  May 30, 08.  The house had been on the market since August 4, 2006 (listed for $1,795,000) ....taking almost 2 years to sell the property.  There were no additional closed salesthis year in Bay Harbor Islands.  It is obvious that the Bay Harbor Islands Real Estate Market is at a stand still - let's see what happens in the remaining months of 2008)

Surfside Real Estate Market Report

There are currently 82 single-family home listings in Surfside:(4 less than last month)

• Highest priced listing is $6,299,000 (bayfront home located at 1249 Biscaya Drive - has been on the market since Feb. 07 and started off at $8 million).
  
• Lowest priced listing is $275,000 for a pre-foreclosure at 8819 Garland Ave
  
• Pending Sales (properties under contract): 7 (3 more than last month)
• Closed sales in 2008: 13 (2 in the month of July)

The highest sale this year in Surfside was for $3.2 million for a bayfront home (1356 Biscaya Drive) purchased in 2002 for $2.2 million, and the lowest sale was for $365,000 (9056 Byron Avenue). With a decreasing inventory and slowly increasing sales, Surfside is slowly coming out of the woodworks.

There are currently 227 condo listings in Surfside: (17 less than last month)

• Highest priced listing: $2,500,000 a 3/3 at Azure

• Lowest priced listing: $160,000 a 1/1 at Regent Place
  

• Pending Sales (properties under contract):10 (1 more than last month)

• Closed sales in 2008: 22 

The have been 2 Surfside Condo sales over $1 million in 2008.  The highest sale was for a 3 bedroom / 2.5 bathroom at The Champlain Tower East which closed on March 31 for $1,250,000.  There have been 8 sales between $700,000 and $1 million and 12 sales under $700,000.

Fisher Island Real Estate Market Report

There are currently 136 listings in Fisher Island: (same as last month)

• Highest priced listing: $30,000,000 for an exclusive Oceanside 5/5.5 home with artwork and all!
• Lowest priced listing: $275,000 for a 1/1 at Marina Village
• Pending Sales: 3 (1 more than last month)
• Closed sales in 2008: 16 

Fisher Island is Fisher Island...no explanation needed - but if you want to get an idea of Fisher Island's Real Estate, read Miami Luxury Real Estate.  Here's the breakdown of sales at Fisher Island:

• Villa del Mare - 1 sale and highest this year in Fisher Island $12,360,000
• Seaside Villas - 4 sales ( $2,788,420 - $1,400,000 - $825,000 - $750,000)
• Pallazzo de Mare - 3 sales ($7,200,000 and 2 at $3,900,000)
• Oceanside - 2 sales ($11,200,000 and $2,575,000)
• Marina Village - 3 sales (435,000, $335,000 and $275,000)
• Bayview - 3 sales ($5,700,000 - $4,000,000 - $3,795,000)

Aventura Real Estate Market Report

There are currently 2196 condo listings in Aventura: (71 less than last month)

• Highest priced listing: $6,000,000 for a 4/6 at Porto Vita
• Lowest priced listing: $24,000 for a covered parking space at The Venture
• Pending sales: 189 (compared to 171 las month)
• Closed sales in 2008: 440 (80 Closings in July)

The highest closed sale this year in Aventura was at Porto Vita for $3,600,000 and the lowest was $12,000 at Hamptons West Condo for a poolside cabana where buyer had to be a Hamptons West Condo owner.

There have been 14 sales over $1 million in Aventura, 14 sales between $1 million and $700,000 and the rest of the sales were under $700,000 (412 sales).

Biscayne Park Real Estate Market Report

There are currently 53 single-family listings in Biscayne Park: (2 more than last month)

• Highest priced listing $769,215 (I think these sellers are playing the "no-zero" strategy)
• Lowest priced listing $160,000
• Pending sales (properties under contract):0 (compared to 4 last month)
  
• Closed sales in 2008: 13 ( 4 sales in July)

The highest sale in Biscayne Park was for $875,000 for the property located at 11080 Griffin Boulevard ( 4,384 sq. ft. canal-front home with 4 bedrooms / 2 bathrooms and 2 half baths on May 14, 2008).  The lowest sale was for $140,000 on June 27, 2008, for the property at 1110 NE 119th Street which was sold for land value since it was a fire-sale in the true sense of the word - house had a fire in Jan. 08.

El Portal Real Estate Market Report

There are 62 listings in El Portal: (1 more than last month)

• Highest priced listing is $925,000
• Lowest priced listing $215,000
• Pending sales (properties under contract):0 (compared to 2 last month)
• Closed sales in 2008: 4 (1 in the month of July)

The 3 closed sales this year in El Portal were for $259,000 for a 2 bedroom / 2 bathroom house located at 465 NE 89th Street on  April 15, 2008; $185,000 for a 2 bedroom / 1 bathroom house located at 335 NE 87^th Street on May 27^th, 2008; and $230,000 for a 2 bedroom / 2 bathroom house located at 134 NW 87th Street on June 11, 2008 and lastly, $212,000 for a 3 bedroom 1 bathroom house located at 164 NW 87th Street on July 31, 2008.

**all information obtained from the SouthEast Florida Multiple Listing Service**

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Ines.Hegedus-Garcia 4 feedbacks »

How do you define Miami Luxury Real Estate?

Believe it or not, the answer is not as clear cut as you think.  People's definition of luxury varies depending on what they have been exposed to and we find ourselves asking our clients to please define what they mean by "Miami Luxury Real Estate".

For people moving from other parts of the US - luxury may mean amenities offered in a particular Miami Beach Condo or even a particular neighborhood.  Does the building have full amenities like valet parking, 24-hr security, concierge, pool, gym, spa.  Or does the neighborhood have golf, private beaches, and tennis.

Luxury Real Estate is not only defined by price (although it is definitely a main factor).  There are older buildings in Miami that have great amenities, high monthly maintenance fees, but the actual prices of the residences within the building complex are affordable.  Examples of these type of buildings are Quayside Towers, The Jockey Club and The Cricket Club.  These are buildings with great reputations and sought after even when you compare them to prime Miami Beach Real Estate.

Then you have Fisher Island Real Estate.  Talk about exclusive!  When you talk about Luxury Real Estate in Miami, Fisher Island comes up first.  A private island, accessible by Ferry, with Golf, Restaurants, shopping, Tennis....and so much more.  Celebrities like Oprah, Andre Agassi and Boris Becker own Fisher Island Real Estate.  But if you have ever seen properties within the island you will know that a lot need updating and reflect finishes from the 80's when the buildings were constructed.   But what defines Luxury in Fisher Island's case is security, amenities and lifestyle.

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Ines.Hegedus-Garcia 2 feedbacks »