Prices Range in South Florida’s Real Estate Market
By: Ismael Rodriguez
In South Florida, based on a report reflecting sales prices in the first quarter of 2017, it appears that prices have either climbed or dropped, varying significantly between neighborhoods.
The Elliman report, which was released last week by Miller Samuel Real Estate Appraisers and Consultants, exhibited that in mainland Miami-Dade the median sales price for all condos and single-family homes rose 12.5 percent over the first quarter last year. In comparison, Miami Beach’s median prices dropped by 5.8 percent over the same period of time.
The numbers also differ in other sectors within the real estate market in these areas of South Florida. For example, in Miami Beach the median price of a single-family luxury home rose by an astonishing 56.5 percent, while the overall median price of a single-family home in the beach dropped by 25 percent.
And despite single-family prices rising by 56.5 percent in the Miami Beach islands, those prices dropped in Key Biscayne and Surfside.
“The metrics are a little bit all over the place,” Jay Parker, CEO of Douglas Elliman Real Estate Florida Brokerage, told the Miami Herald. “But the region is seeing better results than in 2016. I’ve heard so many people talk about an impending bloodbath or meltdown or implosion. That’s not what we’re seeing, and it’s validated by statistics.”
The overall residential prices in South Florida are actually stabilizing, according to what Jonathan Miller, who prepared the analysis, told the press.
“Throughout 2016, there was a reset. Now we appear to be entering a period of stabilization in 2017, which is good for the market,” Miller told the Miami Herald.
“The euphoria of the last couple of years caused many sellers to overprice — aspirational pricing that had nothing to do with the market. I gauge the health of the market by sales activity more than price,” Miller added.
THE NUMBERS (Based on the Report and presented by the Miami Herald)
▪ Overall median sales price: $385,000, down 5.8 percent over first quarter 2016.
▪ Condos: While overall median prices dropped by 8.1 percent, the median price of luxury condos grew by 14.2 percent to $3,025,000 ($1,328 per square foot) from $2,650,000 (or $1,211 per square foot) in the first quarter of 2016.
▪ Single-family homes: The median sales price rose by 12.4 percent overall to $345,450. But prices in the luxury sector dropped by 12.8 percent over the same period in 2016 to $1,200,000.
Results varied by neighborhood. Single-family median home prices rose in Coconut Grove (25.6 percent) downtown (14 percent), South Miami (26.6 percent) and Palmetto Bay (1.3 percent). But they dropped in Coral Gables (13.7 percent) and Pinecrest (19.5 percent.)
Prices in Pinecrest and Coral Gables has the sharpest price drops, to $845,359 (19.5 percent) and $820,000 (13.7 percent) respectively.
▪ Condos: Overall median condo prices grew 3.5 percent over the first quarter of 2016 to $227,750.
In the luxury sector, median prices dropped 27.5 percent. to $785,000, or $419 per square foot in the first quarter of 2017, down from $1,082,500, or $605 per square foot, in the first quarter of 2016. The mainland includes the condo-filled areas of Brickell, downtown and Edgewater.
In Broward, prices also rose, though not as aggressively as in Miami-Dade. The median sales price of single-family homes in Fort Lauderdale was up 5.3 percent over 2016 prices for the first quarter, rising to $300,000. Condo median sales prices essential stayed flat, rising to $263,000 from $261,500.