The #'s are in for the 3rd Quarter and today we are looking at what is happening in the South Beach Real Estate Market for single family homes?
Here is a snapshot of where the market stands for the 3rd Quarter. Since we have waterfront homes we highlight them in light blue, 51 Active Listings, 33 are Waterfront and 18 Not, 8 Closed Sales, and 14 and 25 Months of Supply. Not good #'s Next... even though there were only 8 Sales for the Quarter it's incredible to see that 3 of them were above $20-Million, only in South Beach.
This is odd to see... also 8 Closed Sales and 4 are under $5-MIllion, and the other 4 are above $10 and $20-Million... leaving the homes priced at $5-$10-Million with zero sales, very interesting... so sales at the lower end, and sales at the higher end while the middle gets squeezed... definitely something to keep our eyes on. Now we compare the 3rd Quarter to the previous 2 Quarters to see if we can spot any trends... Actives and Closed Sales are down to their lowest levels of the year and it is very rare to see waterfront homes are almost double the # of Actives, something we need to keep our eyes on as well. Months of Supply remains high, while pricing for non-waterfront homes has been coming down both price/sqft and median price sold, while waterfront homes seems.
Overall, not good #'s most concerning is the low # of Closed Sales and the low # of non-waterfront homes for sale which we feel is keeping things stuck and slow. If you are a Seller in South Beach we have a mixed bag here... Actives are down but so are Closed Sales while inventory of non-waterfront homes is very low at 18, but their prices are declining while waterfront homes seem to be holding. We will also caution you as Months of Supply is still high as the # of Sales has slowed. Also, to get top dollar for your home please make sure it is in turnkey condition, if not you will have to decide to discount it or update it before listing.
For Buyers - the data is mixed but seems to be moving in your favor especially for non-waterfront, but with inventory so low it makes it hard to find something good. Interest rates just moved to below 6.5% which is a great help to you.. In summary, the #'s for the 3rd Quarter in South Beach are a mixed bag... Inventory is low causing sales activity to slow and keeping months of supply high.
Non-waterfront prices have been moving down since the start of the year while waterfront seems to be holding, however right now there are almost double the # of homes which is rare to see and something to watch. As the 4th Quarter starts and Interest rates just moved below 6.5% we need to see if this helps out the market in South Beach.
As I start my 20th year in Miami Real Estate I have seen a lot of different markets and can tell you this is not doom and gloom, but this is exactly what happens in a correction as the market is trying to find it's new level, you just have to know how to navigate thru it, be patient and make sure to work with a professional that can guide you through.
We thank you for watching, and we'll see you soon.