What is happening to the Real Estate Market in South Beach?
The 1st Quarter of 2025 for the real estate market is in the books and today we are looking at single family homes in South Beach, in Miami Beach. What we did here with this Market Report is that we divided the single family homes into Waterfront and Non-Waterfront as there is a huge disparity in their #'s and we wanted to highlight that for you. You will see the Waterfront #'s are in light blue. These are the numbers month by month for the 1st Quarter. Lets go across the board looking at the #'s for March... Active Listings = 71. 27 for Non-Water and 44 for Waterfront. Non-water has been about the same since January while Waterfront Homes did increase from previous two months. Closed Sales = 3. Same as February but down big from January.
Months of Supply = 28 for Non-Waterfront Homes and 22 for Waterfront. Days on Market = 232 for Non-Water and 160 for Waterfront. Both indicators increasing from the previous first two months, not good. Median Price/Sqft = $1,185 for Non-Water and $2,780 for Waterfront. Also both down from previous two months.
With the exception of low levels of inventory, these #'s are a bit concerning and point to a bit of a slowdown in the market in South Beach. Let's look at our next graph to see where the market is today and what price range most of the activity is taking place in. Active Listings = 71. Crazy to see that there are more Waterfront Homes for Sale, 44 vs 27 than Non-Waterfront. And more than half of them, 25 are priced at $20,000,000 and up while 15 are priced at $10-20 Million.
The Active Listings above $20 Million has been increasing every month since the start of the year, so take note. Non-waterfront is spread between $1.0 - $10 Million with zero homes under $1 Million and with only 27 homes on dry lots listed for sale in South Beach, it doesn't look good for Buyers and doesn't give them many options. Even more so if your budget is up to $5 Million you truly only have 15 homes to look through. Closed Sales = 15. Split at 7 for Non-Water and 8 for Waterfront Homes. Zero sales under $1 Million, with all 15 Closed Sales spread pretty evenly across all price ranges beginning with $1 - $3 Million and all the way up through the $20 Million Plus. Months of Supply = 12 for Non-Water and 25 for Waterfront.
They say a balanced/normal market has 6-9 Months of Supply and anything over tends to favor Buyers. In summary, while the market for single family homes in South Beach started the year strong we are seeing signs of a slowing market, with the only healthy # is Inventory remaining low. Active Listings are up especially for waterfront homes at $20 Million plus. Sales are down, Months of Supply is up, Days on Market is up, while both Price/Sqft and Median Price Sold is down.
These key indicators are pointing to a slowing market. Which is coming at a bad time, as we are now dealing with a volatile and unstable stock market as well as unstable interest rates due to the trade wars regarding tariffs which we feel we will negatively impact the real estate market in our April sales #'s and in the coming months as well nd maybe even the rest of 2025, so stay tuned.
For Buyers, even though the #'s are pointing to a slowing of the market, the challenge is the low levels of inventory so if you do find a home you like make an offer right away. It's crazy for me to say that there is much more inventory over $5 Million Dollars than there is below $5 Million. As for trying to time the market... there is so much uncertainty out there that will affect everyone differently as every Seller is different so it may affect some more than others.
Focus on finding the right home for you at the right price. If you are a Seller in this market understand that most of the key indicators we are looking at here are down and pointing to a slowing down of the market. One main area where you do have the advantage is that inventory is low for single family homes in South Beach mainly below $5 Million Dollar's, if you are above $5 Million just be very aware with your pricing and we would suggest to price your home at market or even a bit below just to attract the most attention possible when coming on the market.
With all the economic headwinds in the world right now you don't want to sit on the market especially if you need to sell. Well, that's our 1st Quarter for 2025 Market Update for single family homes in South Beach. I am Jose Laya, and I was born and raised in Miami, and as I start my 19th year in the real estate market I can proudly say that Our goal in making these videos is to provide you with value and help as many people as we can by sharing with you real market data to give you a better insight into the local market.
If you ever have any questions feel free to reach out.
Thank you for watching and we will see you soon.