In 2015, Miami Real Estate transitioned to a more mature market, with solid price growth thru December 2015, albeit at a slower rate than past years. The effect of the supply of new development projects slowed re-sale price appreciation in Downtown Miami in 2015, which had been spiking for the past two years. Luxury pricing, mostly on Miami Beach, stabilized in 2015, especially in the $1 to $5 million price class, and was especially strong in the over $10 million price class. UHNWIs continue to be attracted to Miami beachfront property, especially with high style designs from starchitects the likes of Norman Foster, Renzo Piano, Richard Meier, and Jean Nouvel, to name a few.
Price increases have brought more inventory into the Miami real estate market, but still at levels 60% below 2008 when the market bottomed. Months of supply of condos was 9.6 months, up from 8.4 months supply last year. Historically, that is not such a bad number for Miami where many owners list their properties at outrageous prices just to test the market.
- Average price per square foot for a condo on Miami Beach was $600, with Bal Harbour averaging $730 per square foot, South Beach averaging $666 per square foot for the quarter and Sunny Isles averaging $565 per square foot.
- Average price per square foot for Luxury condos in Miami Beach (the top 10% of the market) was $1,206, with a luxury entry threshold of $1.4 million.
- Average price per square foot condo in Downtown Miami (aka Miami Coastal Mainland) was flat at $283 per square foot, with Brickell averaging $470 per square foot and Luxury (top 10% of the market) averaging $612 per square foot. The luxury entry threshold on the mainland was $580K.
- Miami Beach distressed sales activity continued to see a significant decline, making up only 10% of the condo activity for the beach and only 17% of the condo activity for the mainland, down 36% and 41% respectively.