Homes Report 2024-Q1
Waterfront Homes Report - 2024- First Quarter
Regarding Miami's waterfront homes, location reigns supreme, just like any real estate. But there's more to the story for these coveted properties than just a good neighborhood. Buyers are laser-focused on an essential factor within that location:
Open Water vs. Canals: Many dreams of direct ocean access. You can boat straight to the open water without worrying about bridges or canal limitations. However, canal-front properties can still be fantastic options, especially if they offer easy access to the bay and have wider lots.
The first quarter of 2024 saw a flurry of waterfront property sales in Miami-Dade, with 48 homes finding new owners. Interestingly, 80% of these sales were clustered in the "waterfront desired locations" – Venetian Islands, Mid Miami Beach, Biscayne Point, Golden Beach, Eastern Shores, Keystone Islands, and the Upper East Side. These areas offer stunning water views, established communities, and a luxurious vibe.
The "waterfront desired locations" saw a strong showing for homes priced above $1,500 per square foot. However, the overall crown for the highest price per square foot goes to Key Biscayne, where a jaw-dropping property sold for a cool $16.5 million – $5,575 per square foot! As for the biggest spender, that title belongs to a buyer in Coral Gables' Gables Estates who snatched up a waterfront mansion for a staggering $26 million. https://portal.onehome.com/en-US/share/1618684D31764
Market Dynamics
Last year threw a curveball at waterfront property owners – a whopping 35% increase in homeowner's insurance premiums! Ouch. Despite this unwelcome cost bump, Miami's waterfront market defied expectations and saw a surprising 20% jump in sales compared to the first quarter of 2023. So, what gives? There's good news for waterfront home hunters in 2024. Sellers seem more open to negotiation than in previous years, with some properties fetching 15-20% below asking price. This could be due to a few factors – maybe sellers are adjusting to the reality of new insurance, or perhaps more competition in the market is driving them to be more flexible. Whatever the reason, it presents an excellent opportunity for buyers to snag their dream waterfront property at a potentially better price. The Miami waterfront market is a fascinating study in contrasts. Rising insurance costs could have dampened sales, but buyer demand remains strong. This suggests a long-term appeal for these coveted properties. As we move through 2024, it'll be interesting to see if this trend continues and how sellers adjust their strategies in light of the new insurance landscape. One thing's for sure – Miami's waterfront market is dynamic, and it will be exciting to see how it unfolds!
Outlook
Looking for a crystal ball to predict Miami's waterfront market in 2024? Here's what we see:
First, waterfront properties are rare – they only comprise about 16% of the luxury market inventory. This scarcity should keep demand high, even with the recent insurance cost hikes. Think about it – there aren't many options if you crave that ocean-view lifestyle.
Our money's on completely remodeled or brand new properties selling the fastest and for the most. Why? Most buyers want to avoid the double whammy of expensive renovations on top of pricier insurance for older homes. They want move-in ready with minimal headaches. However, there's always an exception...
A strategic buyer with a keen eye for potential, keep an eye out for properties priced below market value. Waterfront homes selling for 20% below the asking price will likely continue. These could be fixer-upper opportunities for those willing to roll up their sleeves and navigate the insurance landscape. The Miami waterfront market offers something for everyone in 2024. Stable demand meets a limited supply, creating a market with options. Whether you crave a turnkey masterpiece or a diamond-in-the-rough project, there's a piece of waterfront paradise waiting for the right buyer.
The key is understanding your priorities and budget to find the perfect fit. Link to Waterfront Homes Report:
https://reports.sef.mlsmatrix.com/MatrixReportOutput/ReportOutput/14360 /CMA_1_Line_Summary_Report2083.PDF
Luxury Homes Market
In the first quarter of 2024, 132 non-waterfront homes were sold for over $2.5M in Miami-Dade. Most properties were sold in Coral Gables, Pinecrest, Central Miami, and Key Biscayne. Most buyers like these areas for the large lots, many over 30,000 sqft, especially in Pinecrest and Coral Gables.
When it comes to price per sqft, there is a big gap, with the lowest at $500 per sqft to the highest at $2000 per sqft. One of the main reasons for the gap, is that there is a bigger inventory of home that are not waterfront, some of this neighborhoods still have homes that were built in the 1970’s with little remodeling, this is where we see the lower prices per sqft. Pinecrest, an area with big lots, is one of the areas with the most remodeling and new construction in the last 3 years, with a noticeable price increase. And not forgetting Coral Gables, which continues to be one of Miami's most desirable and expensive neighborhoods.
The highest sale recorded was in the City of Coral Gables at $21M, with 13,000 sq ft of new construction. https://portal.onehome.com/en-US/share/1597197N05833
Market Dynamics
This product is among the strongest, even compared to condo and waterfront homes. In the 1st quarter of 2023, there were 89 closings, compared to 132 closings this 1st quarter of 2024, a reported increase of 48% in sales. The turnaround of 75% of the properties sold was less than 175 days, a timeframe that is considered fast since the market had a slowdown in other markets of an average of 270 days. As the price is also lower per sqft, 56% of sales are below $4M.
Outlook
We foresee this market to continue to be vital for the remainder of this year, especially in Coral Gables, Pinecrest, and Coconut Grove. As with the other markets, we continue to see the buyers paying higher price tags for properties that have been completely remodeled, especially when it comes to things such as new roofs, electrical, impact windows, and plumbing since these are factors that will help insurance policies to be a lower premium. Also, the fact that many families are relocating to Miami due to companies opening offices in the city has increased the number of buyers looking for homes closer to school areas, downtown, and major attractions.
Link to Luxury Homes Report: https://reports.sef.mlsmatrix.com/MatrixReportOutput/ReportOutput/14360/CMA_1_L ine_Summary_Report4671.PDF
Months of Inventory & Days to Sell Average
January 1, 2024 – March 31, 2024
Would you like to explore Miami's luxurious offerings? We can connect you with the best properties and provide market insights by area and property. or Want a deeper dive? Contact us for a personalized market analysis tailored to your specific interests.