The 2016 Miami Residential Real Estate Report. by David Siddons

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2016 Complete Miami Residential Real Estate Report

An overview of the most comprehensive 2016 Miami Real Estate Report. A Stock Broker’s study of Miami’s key residential markets 2015 - 2016 This

report is a study of the primary residential markets for Miami for the period between end of 2015 to end of 2016. Each neighborhood covers key data relevant to knowing if a market is going up, down or staying stable as well as the market appetite for properties within a specific price range. It breaks down each neighborhood with months of inventory (FYI around 9 is a balanced market), average dollar per sqft for properties sold between 2015 Q1 and 2016 Q3 and the percentage change to property value in the neighborhood in the last year. The circular charts help us see the change in appetite from last year to this year for homes in a specific price range as well as the current percentage of the whole market that homes in each price range make up. This will enormously help buyers know which price points are doing well and which are not, which will then give you either more or less bargaining power. For sellers this is useful as it will help you appreciate how aggressive you will need to be when pricing your property. Each neighborhood has a good amount of narrative as well. A market overview, advice for buyers and sellers and finally my conclusions on that specific neighborhood. Ultimately we know that statistics are nothing without the narrative that recognizes and discusses the trends and patterns within that market. Below is the summary table for the whole Miami Market. If you go into each neighborhood report you will see the specifics of that neighborhood laid out again. This table is a visual snapshot of the whole market and is particularly useful for investors who are looking for ‘investment hotspots’ or even prior investors who are looking to sell their existing property and move sideways by way of a 1031 exchange (This allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes).

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2016 Complete Miami Residential Real Estate Report The 2016 Miami Real Estate Report for Homes Buy

Hold

Sell

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Neighborhoods

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

Coconut Grove

6 | $412 | 1%

9 | $426 | 11%

11 | $440 | -9%

17 | $473 | -10%

12 | $531 | 23%

Coral Gables

7 | $345 | 1%

9 | $392 | -2%

16 | $453 | 10%

23 | $482 | 3%

28 | $581 | 4%

Pinecrest

7 | $278 | 6%

8 | $314 | 3%

18 | $339 | 3%

21 | $390 | 7%

27 | $452 | -4%

South Miami

5 |$336 | 2%

6 | $419 | 8

3 | $398 | 9

14 | $380 | -3%

n/a

Miami Beach

17 | $354 | -3%

26 | $471 | 1%

18 | $554 | 5%

26 | $667 | 2%

32 | $737 | -10%

South Beach

21 | $666 | 1%

23 | $888 | -1%

27 | $1,350 | 2%

44 | $1,643 | -5%

73 | $1,785 | -23%

Key Biscayne

n/a

11 | $931 | 6%

25 | $737 | -15%

29 | $832 | -5%

Inventory given in Months of Inventory Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3

The 2016 Miami Real Estate Report for Condos Buy

Hold

Sell

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Brickell

44 | $453 | -4%

50 | $611 | -7%

35 | $704 | 0%

42 | $895 | 6%

30 | $991 | -1%

Downtown Miami

52 | $450 | -3%

38 | $629 | 6%

16 | $635 | -5%

n/a

Edgewater

33 | $454 | 1%

41 | $612 | -7%

n/a

Coconut Grove

12 | $357 | 3%

5 | $552 | 8%

2 | $744 | 9%

3 | $877 | 4%

7 | $874 | -17%

Coral Gables

12 | $359 | 0%

9 | $475 | 7%

9 | $541 | 1%

2 | $654 | 7%

n/a | $828 | 46%

Miami Beach

29 | $592 | -2%

46 | $840 | -1%

27 | $925 | -4%

39 | $1,165 | -11%

46 | $1,582 | -17%

South Beach & Venetian Islands

21 | $666 | 1%

23 | $888 | -1%

27 | $1,350 | 2%

44 | $1,643 | -5%

73 | $1,785 | -23%

South of Fifth

35 | $715 | -7%

22 | $981 | 2%

29 | $1,072 | -1%

26 | $1,360 | -3%

28 | $1,777 | -8%

Aventura

31 | $327 | -4%

49 | $425 | -1%

66 | $544 | 3%

36 | $567 | -7%

25 | $750 | -5%

Sunny Isles

42 | $549 | 6%

43 | $652 | -4%

43 | $759 | 1%

61 | $940 | -11%

124 | $1,059 | -10%

Bal Harbour

28 | $550 | 0%

18 | $588 | -3%

10 | $755 | -15%

21 | $1,131 | -3%

67 | $1,209 | -34%

Bay Harbor Islands

32 | $369 | 28%

n/a

Fisher Island

n/a

8 | $1,071 | -6%

34 | $1,408 | -7%

Key Biscayne

19 | $528 | 1%

15 | $718 | 2%

18 | $859 | 7%

34 | $1,051 | 9%

41 | $1,195 | 1%

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2016 Complete Miami Residential Real Estate Report Letter from Editor There are a number of Miami real estate reports that are currently circulating the web for 2016. Many talk about Miami as a whole entity and those that manage to get more specific focus on just the larger more notorious neighborhoods of interest in Miami – like Brickell or Miami Beach. Finally, if you are lucky enough to find a more specific report, you will find that they analyze the neighborhood without subdividing the price layers. There in lies the problem…. Even when we get into specific neighborhoods, buyers and sellers need to be far more conscious of the different price levels or strata’s of the market. We have seen extraordinary differences in behavior from one price level to another. In most neighborhoods we see properties under $1m behave very differently to homes over $2m. So with this in mind, within this report every neighborhood is broken down and every price level is covered. We believe in viewing real estate more like stock. There are many similarities on the way we should analyze it. It is just another asset class and should be treated with the same analytical respect as stocks, bonds or currency: ‘buy’ ‘sell’ or ‘hold!’ This in itself is not always so simple. We appreciate that it is not always so immediately clear as to whether to buy or sell. There are certain threshold points in any Miami real estate market. Just like the stock market where say investors will buy back a stock once it drops to a certain level. So be conscious in this report when we advise that there are specific circumstances that where you can buy a property below a certain threshold point it makes sense. Even if that market is moving down in general there are opportunities, especially as certain sellers become more desperate or pressured due to personal circumstances. Decisions, although often emotionally made, when buying a property (thinking about your life, your children’s life and those lifestyle moments) should be balanced with a rational side, a more calculated and analytical side. Look at the facts not the ‘feelings’ would certainly have saved a lot of homeowners pain, back in 2007 when the market was clearly dropping and they were hanging on. You just have to pay attention to the right indicators. This is where we hope our report becomes so incredibly valuable. Our website details so much on lifestyle, but it also balances it with constant statistical data to help buyers and sellers decide what to do. You won’t find this report filled with trite quotes about Miami’s sandy beaches, blue water or anything like that. It’s here to serve a purpose of showing where the market will be moving in YOUR neighborhood. It also provides a gateway to our other reports that we are constantly writing and filming (yes, we now do a ‘2 minute market update on Youtube’ every month for each neighborhood in Miami). Even those with a really busy lifestyle can spare 2 minutes to get updated on what is going on.

David Siddons

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2016 Complete Miami Residential Real Estate Report

The entire report covers the following key neighborhoods:

Aventura Sunny Isles Bay Harbor Islands Bal Harbour Miami Beach Edgewater Downtown Miami Brickell Coconut Grove Coral Gables South Miami

South Beach South of 5th Fisher Island

Key Biscayne

Pinecrest

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2016 Complete Miami Residential Real Estate Report

CORAL

GABLES

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2016 Complete Miami Residential Real Estate Report

Coral Gables | Homes Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Coral Gables Residential Real Estate Market This chapter analyses the Coral Gables Real Estate market for both Coral Gables homes as well as for Coral Gables condos. Coral Gables Homes for Sale | The 2016 Coral Gables Single Family Report Below you will find the results for the 2016 Coral Gables Residential Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

7 $345 1%

9 $392 -2%

16 $453 10%

23 $482 3%

28 $581 4%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Coral Gables | Homes Report Overview

Coral Gables much like Coconut Grove is a neighborhood largely populated by Miami’s permanent residents. Few rentals and mostly single-family homes, the Gables market continues to be a solid neighborhood to buy or invest compared to the challenged Brickell and South Beach Condo markets. Coral Gables market has some of the lowest months of inventory for any neighborhood yet still tracks behind the neighboring Grove in $ per sqft for the cost of homes for several price levels. As a result we have seen the Gables continue to improve as a whole - although its important to know that Coral Gables is a BIG neighborhood, and when we analyze it we break it into no less than 8 smaller areas. The $1M - $1.5M market saw a very marginal decrease in price per sqft for property values. This was a natural decrease which we now believe is leveling. The $1.5m - $2M range saw a significant increase in price per SqFt for homes sold. This could, if misunderstood, give a false impression of this market. Although there was a decent market rise, it was likely not as much as the 10% reflected in the data table. I believe the 10% rise can be accounted for due to an increased number of renovated homes and a higher number of new homes that sold in 2016 compared to the fewer that sold in 2015. In the $2m-$3M price range for single-family homes we saw a 3% increase in the average price per SF for homes sold. This market had made a natural but solid rise in value, yet the months of inventory now suggest a slight excess of supply that we hope will bring about a reduction in average listing price and bring about equilibrium and in some cases a slight decrease in property value going into 2017. I have spent so much time selling and watching the movement within this sector ($2-3M). What we have noticed is some over-ambitious sellers ‘fishing’ the market in 2016 with expectations that were not well managed. They often looked at well renovated homes and expected their ‘less than new homes’ to achieve the same price. This resulted in rising inventory as these houses did not move. With that said, the market certainly still has an appetite - especially for new homes over and around the $2m range. The $3M+ market is seeing a higher level of inventory than other price brackets but the average market sales prices still increased by 4% over the last year. Once again some of this could be accounted for with a higher number of band new homes being sold over 2016 compared to 2015. The luxury ($3m+ range) now accounts for 24% of homes on the market, but only 12% of the sales. The waterfront homes in Coral Gables saw a good year. The three highest price categories saw increasing prices levels. The $1,5M - $2M market saw an increase of 12% up to $522 per SF, The $2M - $3M market saw in increase of 6% up to $612 per SF and the $3M+ market saw an increase of 1% up to $807 per SF. As mentioned before, many brand new or renovated homes were sold this year although a part of the rise can also be accounted for by the high demand for waterfront homes, often in gated communities, which makes for a natural growth of the market.

Advice for BUYERS

Advice for SELLERS

The Coral Gables market is very favorable for buyers. With low months of inventory and increasing prices the market’s future looks promising. The David Siddons Group would recommend buying a Coral Gables home with the note that even in a healthy market one should always pay attention to the right price. The current price corrections are due to buyers not being advised well enough and buying properties over market price. If you are guided by a good agent and stick to market prices or slightly over market prices depending on the finishes of the home, a Coral Gables home will be a solid buy. What has also presented opportunity in the market is the purchase of single family homes for the purpose of renting out and drawing a good income. For those on a 1031 Exchange the lack of rental product available and the very solid ROI make these a far more attractive proposition than many Condos.

The Coral Gables market is seeing rising prices and a low amount of months of inventory. Although the Miami real estate market is noticing some price corrections and a slow-down, in Coral Gables we still see some high or even record prices happening. Nonetheless, in today’s market sellers need to be more realistic in order to sell a property. Depending on when you bought your property and at what price you will still be able to make a profit. Click here to see if it is time to sell your Coral Gables home or call me at +1.305.508.0899.

David’s Conclusions on Coral Gables Homes Coral Gables offers a wide range of real estate options and whether it is better to buy, hold or sell your Coral Gables property depends on your personal situation, your expected return on investment and what kind of property you bought for what price. Today’s buyers are understandably a little less bullish than they were in 2015 and although Coral Gables’ homes are still selling very well (particularly new homes), todays sellers need to be more realistic when pricing their property if it’s less than perfect. For buyers there is a wide range of properties available and a solid amount of inventory in the sectors from $1.5M and up. Below $1.5M we still do not have as much choice as we would like and there is still strong competition for well done homes. Below $1M there is even less choice and this market has homes that can definitely still appreciate into 2017 (if you are lucky enough to find one). I live and work in Coral Gables and I love talking Coral Gables real estate. Contact me for a personalized chat regarding buying or selling Coral Gables Real Estate and I’ll make sure you get a deeper insight into the market based off number not just opinions.

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2016 Complete Miami Residential Real Estate Report

Coral Gables | Condos Report

Coral Gables Condos for Sale | The 2016 Coral Gables Condo Report Below you will find the results for the 2016 Coral Gables Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

12 $359 0%

9 $475 7%

9 $541 1%

2 $654 7%

n/a $828 46%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Coral Gables | Condos Report Overview

Coral Gables is home to one of the few condo markets that performed well over the last year. There are low levels of inventory but also a very limited amount of actual condos that are available for sale in the first place. Coral Gables condos are nothing like the sky-high condo towers in Brickell, Miami Beach or Edgewater. The Gables’ condos are rather boutique style and often dated yet well maintained. Prices have been rising in the last year. As can be seen from the master data table, the prices of Coral Gables condos are well below the prices of condos elsewhere in Miami, which makes this an excellent market to invest in, that still has potential to grow. If you like a new condo you can think of brand new projects like Merrick Manor and Laguna House. The (ultra) luxury market in Coral Gables is non-existing and brand new projects like Laguna House are trying to fill this gap. This might offer some great opportunities as Coral Gables is a desired residential area that is still lacking the ultra luxury condo market for people that prefer the ease of condos over homes.

Advice for BUYERS The market is very favorable for buyers. With low inventory and attractive prices the market’s future looks promising. The David Siddons Group would recommend buying a Coral Gables condo with the note that even in a healthy market one should always pay attention to the right price and a unit that is unique and will stay unique. Contact me to see what condos and what type of units are more likely to perform well over time.

Advice for SELLERS The Coral Gables condo market is seeing rising prices and a low level of inventory. Just like Coconut Grove condos we would advice to hold on to your condo if you can, but if you need to sell or you like to change into the single-family home market this would be a great time to get a good ROI from your condo. Contact me to see what your Coral Gables condo might be worth.

David’s Conclusions on Coral Gables Condo Market Coral Gables is a high-end residential area that has always been in demand and is ranked number 1 among Miami buyers. The Coral Gables market attracts a lot of wealthy investors and buyers who at the moment are experiencing a severe lack of luxurious condos. In general Coral Gables condos are scarce but luxury Coral Gables condos are a true gap in the market. There is a handful of brand new condos being developed right now that are answering this demand. With the rising prices and low inventory levels investing in Coral Gables condos might be a unique opportunity. Call me today for more information on Coral Gables Condos or selling your Coral Gables condo.

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2016 Complete Miami Residential Real Estate Report

COCONUT

GROVE

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2016 Complete Miami Residential Real Estate Report

Coconut Grove | Homes Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Coconut Grove Residential Real Estate Market This chapter analyses the Coconut Grove Real Estate market for both Coconut Grove homes and condos. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for the Grove.

Coconut Grove homes for Sale | The 2016 Coconut Grove Homes Report Below you will find the results for the 2016 Coconut Grove Residential Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

6 $412 1%

9 $426 11%

11 $440 -9%

17 $473 -10%

12 $531 23%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes For Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Coconut Grove | Homes Report Overview

Coconut Grove has seen a significant increase in the demand for single family homes in the last few years - particularly newer and bigger homes. This has resulted in a large number of homeowners to renovate and developers to build new homes. This in turn created a great upsurge in prices but has also in 2016 created some over ambitious sellers. The peak of this real estate frenzy happened in the second half of 2015 yet some sellers continued to project their home values above what they worth into 2016. Up to $1.5M the market saw a leap in value between 2015-2016, particularly between $1M and $1.5M (according to the stats), although the stats are correct they could be misinterpreted. There was a small natural increase but we saw more improved homes sell since the year before and it’s those improved homes that allowed the sales price per SF to increase so much. The $1,5M – $2M market saw a small decrease in home values between 2015 and 2016. We see that 2016 sold just one home over $500 per SF while 2015 saw many homes being sold between $500 and $700 per SF. Homes in 2015 were not that much better finished or more luxurious and we can clearly see a small correction of the market here. If you can find a home under the price per SF that the market commands, either by virtue of a smart buy or by virtue of finding a home to renovate or improve upon you will see that value rise. The $2-$3M market saw a 10% decline in sales prices. 2015 Sold above some of the values that the market could have sustained, while in 2016 we saw a slight correction. With that said inventory is still at a manageable level on the whole and we don’t expect to see any big corrections across the market in general, more of a stable behavior. The $3M+ market saw a rise in prices. The table only shows non-waterfront homes and each year saw only 5 or less homes being sold. While 2015 didn’t sell anything above $500 per SF, 2016 saw all sales in the $500 per SF range. Waterfront homes saw a decrease in sales prices with $940 per SF in 2015 and $861 per SF in 2016. It needs to be mentioned that the 2015 sales were better finished and better located homes, which might influences the sales prices heavily.

Advice for BUYERS

Advice for SELLERS

The luxury section of Coconut Grove is currently seeing some price corrections, which is great news for buyers who can now profit from sellers that were hit with reality and are adapting their prices.

The North Grove certainly has less inventory that the South Grove (notably Bay Heights) which runs very low on inventory. So be conscious that you will have to pay a little more for the same home in the North Grove compared to the South Grove. I am still bullish on the Grove as a good neighborhood to invest and live but I do advise caution as with all purchases to operate within the confines of the price per SF ranges provided within the report.

David’s Conclusions on Coconut Grove Homes Market My personal experience as a Coconut Grove expert and someone who deals with Coconut Grove real estate on a day to day basis is that the Grove offers great investment opportunities as long as buyers stay within or under the dollar per SF numbers provided in this report. Coconut Grove is one of Miami’s top 3 single-family markets. It has many strong selling points like safety, schools and quality of life. For sellers who bought three years ago or more, it is a good time to monetize your profits as long you stay realistic as to the current market. With that said, the peak prices we saw at the tail end of 2015 may not be realistic for some. Overall the future for the Coconut Grove single-family market remains positive as this is a highly desirable neighborhood for primary residents to call home. And any corrections we see in 2017 will reflect merely a correction in the market, and not a serious downturn.

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2016 Complete Miami Residential Real Estate Report

Coconut Grove | Condos Report

Coconut Grove Condos for Sale | The 2016 Coconut Grove Condo Report

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

12 $357 3%

5 $552 8%

2 $744 9%

3 $877 4%

7 $874 -17%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Coconut Grove | Condos Report Overview

Coconut Grove is one of Miami’s most desired neighborhoods because of its safety, location and high-end lifestyle. This bohemian chic town is known for its single-family homes and despite the market’s demand still offers relatively few luxury condos. The Grove’s condo market consists of (sometimes) dated yet luxurious condo towers such as Grove Hill, The Ritz Carlton, Yacht Harbour, The Coconut Grove Bayshore condo and Grovenor House. Most of these condos are luxury condos within the $500K – $2M range. The ultra-luxury condo market in Coconut Grove for condos built in the last 10 years is very scarce with exceptions being the Grovenor House and Residences at Vizcaya. The town that was covered in an article by the Wall street Journal because of its transition “from Birkenstocks to Billionaires” is opening up to a brand new market: the ultra luxurious and expansive condos for wealthy families or individuals that do not desire a single family home. Certainly, Coconut Grove has a very different dynamic to the currently correcting Brickell or Edgewater Condo Market. The demographic that buys in the Grove is primarily looking for a permanent residence or a second home and not for merely an investment. The Grove attracts many young professionals as well as families who are transitioning into a better school district. With that demographic in mind the Grove’s newest condos, Park Grove and Grove at Grand Bay filled a much-needed gap in the market. The speed at which both condo projects were sold (Grand at Grand Bay opened this October and Park Grove is still selling pre-construction units with a completion date of late 2017.) confirmed that the demand for ultra luxury condo living is very much alive in Coconut Grove. As can be seen from the data table, the Grove’s inventory is very low especially for a condo market. The lower-end of the market is experiencing a buyer’s market while the condos between $1M and $3M are in a sellers market. Needless to say, the low levels of inventory had a positive effect on the sales prices. The decrease in prices per SF values (-17%) for condos in the $3M+ market does not reflect a drop in the market, if anything the market has gone up. The reason the numbers reflect a drop is because there were only two recorded sales on the resale market in both 2015 and 2016. In 2015, the sales occurred in a more exclusive building than in 2016, which created a large price difference. The reason for these low numbers of sales is due to the majority of buyers being focused on Park Grove and Grove at Grand Bay (the two new luxury buildings) and these sales will not show on public records until 2017, where we actually expect to see an increase in dollar per SF in this market.

Advice for BUYERS

Coconut Grove unlike many other neighborhoods has performed well in the last year and prices have continued to creep up. The Grove is contained from the troubles of Brickell and as buyers search for a safe, stable and inviting neighborhood to call home, families have continued to come to the area. The luxury section of Coconut Grove is currently seeing some price corrections, which is great news for buyers who can now profit from sellers that were hit with reality and are adapting their prices. The North Grove certainly has less inventory that the South Grove (notably Bay Heights) which runs very low on inventory. So be conscious that you will have to pay a little more for the same home in the North Grove compared to the South Grove. I am still bullish on the Grove as a good neighborhood to invest and live but I do advise caution as with all purchases to operate within the confines of the price per SF ranges provided within the report.

Advice for SELLERS

There is no immediate reason to sell your Coconut Grove condo at this moment. Inventory is low and prices are going up. Those who want to sell however, will profit from the sellers market and increasing prices. If you are looking to sell, do not get over-confident and avoid pricing your unit for much higher than the market value indicated. Today’s buyers are price conscious and although they are willing to pay a good price, they wont easily pay over market price anymore.

David’s Conclusions on Coconut Grove Condo Market There is no immediate reason to sell your Coconut Grove condo at this moment. Inventory is low and prices are going up. Those who want to sell however, will profit from the sellers market and increasing prices. If you are looking to sell, do not get over-confident and avoid pricing your unit for much higher than the market value indicated. Today’s buyers are price conscious and although they are willing to pay a good price, they wont easily pay over market price anymore.

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2016 Complete Miami Residential Real Estate Report

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2016 Complete Miami Residential Real Estate Report

Pinecrest | Homes Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Pinecrest Residential Real Estate Market This chapter analyses the Pinecrest Real Estate market for Pinecrest homes. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for Pinecrest.

Pinecrest homes for Sale | The 2016 Pinecrest Homes Report Below you will find the results for the 2016 Pincrest Residential Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

7 $278 6%

8 $314 3%

18 $339 3%

21 $390 7%

27 $452 -4%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Pinecrest | Homes Report Overview

Pinecrest has received increasing attention from homebuyers. The neighborhood offers an excellent home spread with more bang for your buck than in adjoining neighborhoods like Coral Gables and Coconut grove. Pinecrest offers large homes on large lots and is located within an excellent school district, which makes the neighborhood very much in demand with young families. The market below the $1.5M shows low inventory levels (a well-balanced market), while the more expensive homes are showing higher levels of inventory and are experiencing a buyers market. All of Pinecrest’s submarkets are showing an increase in values with the exception of the $3M+ homes. This end of the market has seen a massive increase of brand new development homes and these homes were often sold far above market value, which resulted in record prices in 2015. With the high inventory and a general trend of more price conscious buyers we notice that this market is now seeing a small correction.

Advice for BUYERS Pinecrest has received increasing attention from homebuyers. The neighborhood offers an excellent home spread with more bang for your buck than in adjoining neighborhoods like Coral Gables and Coconut grove. Pinecrest offers large homes on large lots and is located within an excellent school district, which makes the neighborhood very much in demand with young families. The market below the $1.5M shows low inventory levels (a wellbalanced market), while the more expensive homes are showing higher levels of inventory and are experiencing a buyers market. All of Pinecrest’s submarkets are showing an increase in values with the exception of the $3M+ homes. This end of the market has seen a massive increase of brand new development homes and these homes were often sold far above market value, which resulted in record prices in 2015. With the high inventory and a general trend of more price conscious buyers we notice that this market is now seeing a small correction.

Advice for SELLERS Pinecrest is a desired market and buyers are lining up. These buyers however are not willing to pay outrageous prices anymore for properties that don’t justify their price. Owners of homes below $1M market might profit from the trend that many developers are looking to build luxury homes on large Pinecrest lots. Many of them are willing to pay a good price for a dated property. As the Pinecrest market grew considerably in the last few years many owners will be able to gain a great return on investment as long as they are realistic about market values. For owners of luxury properties I like to point out that there is a great amount of inventory entering the market which makes the luxury market more and more of a buyers market. With many builders about to deliver their new mansions and looking for a quick “flip” you might want to start looking to sell now instead of waiting till the market gets more supply and more bearish. To get a good overview of maximally achievable prices for Pinecrest home click on: Is it time to sell my Pinecrest house?

David’s Conclusions on Pinecrest Real Estate

Pinecrest has a good spread of homes and is among Miami’s most desired market. Buyers certainly get more bang for their buck in Pinecrest – A bigger piece of land, a bigger home for a price per SF far below that of adjoining neighborhoods. I do believe very much in this market, its investment potential and its continuous growth. How much further can this market go? For sellers I would suggest they check our link “Is it time to sell my Pinecrest home” which provides ceiling prices for a range of Pinecrest homes. I do believe the Pinecrest ‘s luxury market is experiencing a slight moderation but will continue to grow as always. Many potential sellers will be able to get a great profit by selling now. If you are looking to sell, contact me today for a free of charge personal chat and a competitive market analysis of your property.

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2016 Complete Miami Residential Real Estate Report

SOUTH

MIAMI

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2016 Complete Miami Residential Real Estate Report

South Miami | Homes Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the South Miami Residential Real Estate Market This chapter analyses the South Miami Real Estate market for South Miami homes. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for South Miami.

South Miami homes for Sale | The 2016 South Miami Real Estate Report Below you will find the results for the 2016 South Miami Residential Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

5 $336 2%

6 $419 8%

3 $398 9%

14 $380 -3%

n/a n/a n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

South Miami | Homes Report Overview

The often-overlooked South Miami offers great single-family homes and is ideally located next to Coral Gables. Looking at the table, we see that all South Miami real estate markets are experiencing low inventory levels. Below 6 months of inventory we are experiencing a seller’s market, between 6 and 9 months a well balanced market and above 9 months we talk about a buyer’s market. The prices per SF in South Miami saw a small increase in 2016. The $2M - $3M market is showing a slight decrease in the table, but with a very limited number of sales it is unfair to make hard conclusions. One bigger sales can influence the data considerably and the 2016 market didn’t underperform compared to 2015. In a year known for price corrections, South Miami homes are showing very positive data. The data didn’t show severe price changes but rather subtle positive changes in the market’s desirability. This means the overall South Miami home market is seeing a positive move and can be seen as a rising market. One of the reasons for this price increase might be that sales prices in South Miami are still very attractive especially compared to Coconut Grove and Coral Gables. Buyers who want to live near the Gables or the Grove and who cannot afford properties in said areas will be more likely to look at South Miami properties.

Advice for BUYERS

Advice for SELLERS

There is nothing more promising than a market with a low amount of months of inventory and rising prices.

The South Miami market is showing great potential and it seems the ceilings hasn’t been reached yet. As neighboring area are getting more expensive, South Miami is still affordable while being ideally located between the Gables and Pinecrest.

David’s Conclusions on the South Miami Home Market Im very positive about the South Miami real estate market. The numbers show great potential especially in today’s market. In case you want to look for South Miami homes for sale we provide you with an up to date and MLS-fed page that allows you to scroll through all South Miami listings while including your own search critieria In case you do want to see what your South Miami property is worth in order to sell in a bearish market, please contact me today for a comparative market research of your South Miami property.

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2016 Complete Miami Residential Real Estate Report

BRICKELL

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2016 Complete Miami Residential Real Estate Report

Brickell | Condo Report

A Stock Broker’s Style Study of the Brickell Condo Estate Market This chapter analyses the Brickell condo market. This report can actually be applied to the specific condo owners and buyers in specific price ranges. Here below we present the key finding for the Brickell Real Estate market.

Brickell Condos for Sale | The 2016 Brickell Condo Report Below you will find the results for the 2016 Brickell Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

44 $453 -4%

50 $611 -7%

35 $704 -

42 $895 6%

30 $991 -1%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

Overview Brickell is the urban core of Miami and is in fact the second biggest financial district in the US. Certainly the most densely populated neighborhood and home to more new Condo’s than any other neighborhood. Brickell has enjoyed huge growth and increases in value over the last 5 years. Huge numbers of investors have consumed the new Condo sales market but the result has been a sharp rise of inventory as sellers have realized that ‘trees do not grow to the sky’ and that the ceiling had been reached. The stats from the report do not account for the majority of new Condos STILL to enter the brickell market.

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2016 Complete Miami Residential Real Estate Report

Brickell | Condos Report Pre-construction Condo in Brickell Brickell has had a number of new condo buildings that are not factored into the data table. These buildings should be considered when making predictions for the next 12 months. Particularly if the units you are either considering selling or buying fall into the same bracket as those below. There is a total number of 4,293 new units being built at an average sales price of $530-680 per sqft. Price range for these units is: $500,000 – $1,500,000. Total number of units and other stats

Brickell Pre-construction condos still to enter the market: §§ §§ §§ §§ §§ §§ §§ §§ §§ §§ §§ §§

Brickell City Center Reach Brickell City Center Rise Brickell Heights Brickell Heights 2 The Bond SLS SLS Lux One River Point Flatiron 1010 Echo Brickell Casa Brickell

One of the big questions on many buyers and sellers minds has been how much of the new Condo sales will enter back into the market? The most recent new Condos to open in the last 12 months may be a good indicator of sales trends to come from the new buildings due to open in the next 12 months and their overall impact on the market. The buildings that have opened have revealed few resales but significant inventory. To check the stats on these buildings click here: My Brickell, Brickell House, Nine, Millicento, Le Park.

Advice for BUYERS

Buyers looking to buy in the range of $500,000 – $2,000,000 need to be very careful and should not be afraid to negotiate extremely hard with sellers. With such a large amount of inventory and the closing of over 4,000 new units (from over a dozen new buildings all in Brickell and most closing in the price range of $500,000 – $1,500,000) there is considerable downward pressure on this sector of the market and inventory outstrips demand to create an environment that does not allow for short term appreciation. If you are focused on buying in this market a focus on property trading below $450 per sqft would be your best bet. $2,000,000 upwards: Buyers in this range should aim to buy below the $700/$750 per SF range to avoid the potential dangers of a falling market. $3,000,000 upward: Condos in this range are less at risk than those in the lower price ranges. There is a more limited supply of these condos compared to the other price sectors although months of inventory is still more than a balance market would dictate. The majority of sales have centered around the Four Seasons, Santa Maria and Asia. The only new Luxury Condo to come into this range is Echo Brickell but this will not show up in data reports until 2018.

Advice for SELLERS

If you are an owner in Brickell then it is wise to pay close attention to the sales price per sqft prices within your building. As not only an experienced brokers and analyst but as the top producing Christies agent for Brickell the last 3 years in a row we can advise you on your units true value as well as the right price to list at without it sitting on the market for too many months. The Brickell market is by all accounts correcting downwards and owners should be trying to list and sell as close to true market figures as possible. As the saying goes, ‘do not try and catch a falling knife’, pricing higher than the market and then gradually reducing – essentially chasing the market down, should be avoided at all costs. Our over all advice for those who want to sell within the next 18 months and have a unit priced between $500,000 – $2,000,000 is to be aggressive. For those who want to protect their financial assets as much as possible and require a 1031 exchange (to avoid capital gains) should look to the ‘green sectors’ of the market in the master table. Other lesser known niche markets and communities can also be considered – such as the Roads and Shenandoah. Please call directly to gain specific knowledge and advice on these.

David’s Conclusions on Brickell Condos Its seemed simply unavoidable that such a large number of new condos in Brickell would result in an adjustment to the market. Brickell is still a wonderful place to live and long term it will continue to grow and increase in value, but not before the correction. Owners of units must be aware that if they are needing or wanting to sell in the next 12 months they will have to ‘wake up’ to the realization that they will need to adjust their previous valuations on their units by as much as 20%. Agents who pamper to owners illusions of value are just hurting them in the long run. For many of the owners of Brickell Condos who are essentially ‘investors’ and have their units rented or focused on getting them rented the huge influx of new product will mean re-assessing their expected returns. One option is to sell and explore the much stronger single family rental market of the Grove and Gables where cap returns are much higher and prices are far more stable due to much lower months of inventory. If you are an owner of a Brickell Condo and are thinking of selling. Please call us for specific advise, analysis and guidance in selling your unit. If you are considering a purchase let us guide you. We will help you avoid the pitfalls and choose the best investment.

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2016 Complete Miami Residential Real Estate Report

Downtown

MIAMI

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2016 Complete Miami Residential Real Estate Report

Downtown Miami | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Downtown Miami Condo Market This chapter analyses the Downtown Miami Condo market. This report can actually be applied to the specific condo owners and buyers in specific price ranges.

Downtown Miami condos for Sale | The 2016 Downtown Miami Condo Report Below you will find the results for the 2016 Downtown Miami Condo Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

52 $450 -3%

38 $629 6%

16 $635 -5%

n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Downtown Miami | Condos Report Overview

Downtown Miami doesn’t even get close to Brickell when you look at the amount of brand new condos. In fact, 1000 Museum, Paramount world center and Centro are the only really significant new projects. The total number of new condo units in construction is just 910 units. With that said Paramount is the most significant in size with 472 units. The stats within this market need a little explaining. There is of course contamination between Brickell, Downtown and Edgewater, but it seems for now Downtown is faring better than Brickell. The months of inventory for condos below $1,5M is pretty high as there is a high inventory is the greater Downtown area which includes Edgewater and Brickell. The luxury end of the market seems to be seeing less months of inventory. Downtown Miami also just recently introduced its first ultra-luxury condo: 1000 Museum. While too little was sold in the luxury market to provide you with an average price, the lower end of the market saw some slight price decreases. We do need to notice however that the $1,5M - $2M market saw a price decrease because in 2015 more sales were closed in the higher-end buildings and in 2016 more sales closed in the more “dated” condos.

Advice for BUYERS Be conscious that Downtown is similar to Brickell, it is a condo based environment serving a very similar demographic. With this in mind, behavior is much the same and so buyers should look to activity in Brickell as a measurement for market movement of Downtown. In short, one contaminates the other. Downtown does have 2 primary new condos; Paramount and 1000 Museum. These are setting a level never seen before. In the long run downtown will no doubt do well with all the development. So long-term investors (5 years or more) can feel bullish.

Advice for SELLERS Owners with larger 3 and 4 bedroom units are definitely encountering the biggest challenges as the more expensive ‘luxury Condo’ market takes corrections elsewhere. Owners of units at 900 Biscayne, 10 Museum, Marquis and to a degree Marina Blue are all experiencing the challenges of large amounts of inventory. We urge anyone considering selling to call us and get personalized guidance of their unit’s value. Markets in Downtown and Brickell are likely to continue to feel downward pressure on prices into next year. If you are considering sell, sell and please be in line with the market sale prices and NOT get seduced by asking prices – which means do not price far above current sales numbers when listing.

David’s Conclusions on Downtown Miami My Conclusions in Downtown are very much in line with my Brickell recommendations, which is if you a buyer be careful and chose units or buildings that are like nothing else on the market. For conversations on 1000 Museum or Paramount World Center this is a different conversation, so please call me as this is very specific. For sellers, be realistic and price at market sales price as downward pressure with inventory could drive some of these buildings’ prices down further. There is as with all markets a ‘floor’ and we can tell you what that floor is for your building.

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2016 Complete Miami Residential Real Estate Report

MIAMI BEACH

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2016 Complete Miami Residential Real Estate Report

Miami Beach | Homes Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Miami Beach Residential Real Estate Market This chapter analyses the Miami Beach Homes and Miami Beach Condo markets. This report can actually be applied to the specific home owners and buyers in specific price ranges.

Miami Beach homes for Sale | The 2016 Miami Beach Real Estate Report for Homes Below you will find the results for the 2016 Miami Beach Residential Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

17 $354 -3%

26 $471 1%

18 $554 5%

26 $667 2%

32 $737 -10%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Miami Beach | Homes Report Overview

Miami Beach has seen high levels of months of inventory. Although prices were still increasing in most sub-markets, the lower-end of the market as well as the most luxurious homes saw a slight decrease in values. The $500K - $1M market saw a very small decrease of 3% while the luxury market saw a 10% decrease (please note we speak about non-waterfront properties here). 2015 Didn’t sell better located or better finished residences, so we will have to conclude that this is a matter of the market adjusting. Especially in the higher-end of the market we see that 2015 sold above some of the values that the market could sustain (between $700 and $1,000 per SF), while in 2016 we saw a correction and prices ranged between $600 and $800 per SF. For waterfront properties we saw the markets till $2M increase in value with respectively 20% in the $500K - $1M market to $455 per SF, 1% in the $1M-$1,5M dollar market to $570 per SF and 9% in the $1,5 - $2M market to $738 per SF The $2M - $3M market and the $3M+ waterfront markets saw decreases by respectively 5% and 2%. These are not massive decreases but we did see a slight adjustment of the market here after an extremely high selling 2015. Where in 2015 most properties sold for $1000+ per SF, 2016 was more moderate with less sales in that price range. Although luxury markets tend to be volatile and some extreme sales tend to influence numbers a lot, we have to recognize that Miami Beach is currently experiencing a market correction.

Advice for SELLERS

Advice for BUYERS We might be seeing more price corrections in the Miami Beach market soon. Although prices have gone up, the high months of inventory show that the market is becoming more and more of a buyers market. As we see properties that sit on the market for longer periods of time, there will be opportunity to get some good deals. Do not be afraid to make low offers to pick up a deal, especially in the upper ends of the market. In the mid-range there is still a lot of inventory, but not that many really well or renovated homes. Once again there will be deals to be had but be conscious of ‘low balling’ offers on very well done homes. If you are just getting into this market and want to invest, then buy in the key markets around the below mentioned hotspots. Hotspot: We predict that the next hot spot area will be around mid-beach just short of Surfside – This is due to the new developments on the beach: Surf Club Four Seasons and 87 Park which will do a lot to redefine this neighborhood. Other key markets are around desired condo hotels like Faena House or the Edition and Residences.

Sellers I would like to advice to be realistic of the prices they are asking. Especially in the higher-end of the market, where we see the highest price corrections. Sellers cannot expect the same record prices as in the last few years. Be conscious of what other properties are selling for and not what they are listing for, there is a huge difference between the two. If you want to sell your property do not fish around for exaggerated prices, price your property well and according to market value. Under $2M the next hot areas are going to be Mid and North Beach, with new development condos like the Surf club or Eighty Seven Park. We see a social migration that is moving up north so owners of homes in that area might see an increase in demand for their properties.

David’s Conclusions on Miami Beach Homes Miami Beach homes have always been the most highly priced single-family homes in Miami. We have seen price corrections in the last 6 months and some big reductions in listing prices, which offer great opportunities for buyers. We offer a great overview of Miami Beach homes for sale, in case you want to see any of these properties please contact me today. Ill be more than happy to join you in your search and make sure you get the best possible deal. Miami Beach sellers should get themselves an experienced Miami Beach listing agent who performs a realistic CMA (Comparative Market Analysis) so the home gets priced well, gets the attention it needs and sells fast. Contact me today in case you want to sell your Miami Beach house or in case you want to buy a Miami Beach property. I’ll be more than happy to guide you in the process and share my analytical skills and market knowledge with you.

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2016 Complete Miami Residential Real Estate Report

Miami Beach | Condos Report

Miami Beach Condos for Sale | The 2016 Miami Beach Real Estate Report for Condos Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

29 $592 -2%

46 $840 -1%

27 $925 -4%

39 $1,165 -11%

46 $1,582 -17%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

Overview Arguably one of Miami’s most famous and exclusive condo markets, but at the same time such a diverse market that it is hard to really make firm conclusions. As the Miami Beach condo market varies from the more dated and small condo towers that are hidden in many of its side streets to ultra luxury oceanfront projects like FAENA House and the Miami Beach Edition. The Miami Beach market of $500K to $1M saw a small price correction of -2% with 29 months of inventory. 29 Months of inventory is high and a strong buyer’s market although the market shows healthier signs than many other condo markets in Miami. Looking at the decreasing price and the properties sold this is nothing to really worry about as 2015 saw a higher amount of sales in the ultra-luxurious Fountainebleau condo hotel, which skewed the prices. The $1M – $1,5M Market shows many months of inventory (46), with a slight price decrease. The $1,5 to $2M market is showing the lowest inventory of 27 months with a 4% price decrease. 2016 Saw only 25% of the properties reach a sales price per SF of $1,000+ while this was 50% in 2015. The Miami Beach condo markets of $2M+ are showing high inventory levels and decreasing prices. In 2015 we saw many more luxury condos being sold for prices of $2,000 per SF and even higher while almost no properties were sold in that range in 2016. As a general trend, Miami’s luxury market is experience price corrections with buyers becoming more price conscious. At the same time, Miami Beach is home to many brand new condo projects often starting at $2M, which meant many new units entered the market. As many buyers prefer the brand new projects with the latest in services and amenities the resale market suffered from this new inventory with declining values for old ‘last cycle’ Condo product that had been made to feel second best to newer, better finished product.

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2016 Complete Miami Residential Real Estate Report

Miami Beach | Condos Report

Advice for SELLERS

Advice for BUYERS Although the Miami Beach master table shows no green colors, we do believe in this market’s long term potential. As I mentioned before, this market is so diverse with such a wide range of condos it is hard to generalize the market even though we are already subdividing the market into these different price brackets. Miami Beach still has an enormous attraction to international investors often looking for a second home on the water. As long you invest in good value, well built Condos and units with the desired ocean views and you make sure you don’t overpay, your investment will be solid. The Miami Beach market has been performing very well over time yet in 2014/2015 we often saw outrageously high prices being paid which the market wasn’t able to support over time. A good realtor will be able to tell you what is a fair market price and what units are likely to perform well in the future. Also don’t forget that most buyers prefer the newer, state-of-the-art buildings. We also wanted to mention that we have noticed a migration of interest towards the Mid-Beach areas where new condos like Eighty Seven Park are being built. Other desired areas are walking distance and around the FAENA District and the Miami Beach Edition. These markets are getting more and more attention from buyers who are focusing on buying property there. In case you are looking to buy in the lower end of the market this could be a good area – particularly the properties below $1,5M. The area will continue to improve in the wake of the ultra luxury Condo developers who are gentrifying the surrounding neighborhood.

Notably on the luxury end of the market for Condos built between 2002 and 2012 we are seeing high levels of inventory with correcting prices. These Condos used to be ‘top of the food chain’ but no longer are, being comfortably out finished, out serviced and in cases ‘out viewed’ but the newer better breed of buildings like 87 Park, One Hotel and Homes and Faena House. If you need to sell now realize that these older buildings have peaked. The market is stable at best with signs of corrections, so be aware. Buyers that bought in 2012 or before probably bought for more moderate prices than those that bought in 2014/2015 and therefore it will be easier to gain a more significant profit. If you are an investor and renting your unit the market has not shifted too much as most new construction has been on the very high end, therefore rentability is still good. The condos that were built between 2000 and 2010 are now being surpassed by the new breed of condos. These “dated” condos were high-end condos when they were built, but they aren’t the most luxurious properties anymore. Although they are cheaper than the brand new condos, they are still often overlooked by the high-end buyer who are focusing on the new levels of luxury achievable in the post 2015 Condos. For details on those Condos you can view them all on our main site: www.luxlifemiamiblog.com If you are looking to sell now or within the next year, contact me: 305 508 0899 to discuss the right price or even to assess whether it is wise to hold on to the unit or to sell it.

David’s Conclusions on Miami Beach Condos The market corrections could offer a great opportunity for many condo buyers in 2017. When you are looking for Miami Beach condos for sale make sure you pick one of the hotspot areas mentioned above and pay the right price (according to our guidance). We will ensure you know which are the most desired condos both new and reale. For Miami Beach condo sellers we can perform an accurate and realistic CMA (Comparative Market Analysis) so the condo gets priced correctly, gets the attention it needs and sells fast without sitting on the market for months. Contact me today in case you want to sell your Miami Beach condo or in case you want to buy a Miami Beach property. Ill be more than happy to guide you in the process and share my analytical skills and market knowledge with you.

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2016 Complete Miami Residential Real Estate Report

South Beach | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the South Beach Condo Market This chapter analyses the South Beach condo market. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for South Beach.

South Beach Beach Condos for Sale | The 2016 South Beach Condo Report Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

21 $666 1%

23 $888 -1%

27 $1,350 2%

44 $1,643 -5%

73 $1,785 -23%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

South Beach | Condo Report Overview

The South Beach market is known for its high end Condos and Condo, hotels with electric and vibrant lifestyle. It has been the center of activity for Miami Beach and there has been a significant amount of brand new ultra luxury condos in the area to satisfy the demand of international investors, but is it still the focus of the wealthiest Condo buyers? The higher-end of the market is experiencing slower purchase activity in 2016. In 2015 and before the investor inflow was unstoppable and buyers would pay record prices for the best luxury Condo’s in South Beach. This was fueled by many South American buyers moving their money into the stable US market. With South American currencies weakening and the higher level of price consciousness of buyers now present the luxury end of the market has softened but this price correction has been needed to regain market equilibrium. For the markets with declining prices it needs to be mentioned that in 2015 much more units were sold in ultra luxury condo (hotels) like the Setai and the W hotel. 2015 For example saw many sales above $2,000 and even $3,000 per SF while this was hardly the case in 2016. The South Beach and South of Fifth markets also received a considerable injection of pre-construction projects (One Hotel and Homes, 321 Ocean, Glass and Marea to name a few) plus the market was also affected by the brand new luxury projects just above south Beach in mid-beach – Feana and the Edition being prime examples.

Advice for SELLERS

Advice for BUYERS South Beach will continue to be a highly desired and prized location in Miami – it will never likely go out of fashion, but the market did get overheated and any buyer needs to play close attention to $ per sqft in neighboring markets as they should be serious contenders for your dollar. This does not mean there will be no more good opportunities, they will just be harder to find. South Beach market shows reasonable inventory and increasing prices if you disregard some of the mega luxury sales in 2015. As long as you pay the correct market price we would not be adverse to recommend clients buy here. With regards to the luxury market I would comment the same logic as above, when you pay market price and you are willing to hold on to your unit for a longer period of time you will have a good investment.

Across the whole market we see some challenges number, inventory is high and we expect further pressure from inventory could drive the price your property down. Do not float your listings above market, as you will (as will other neighborhoods) end up chasing the market down. We do not expect sellers to get more next year than this year, the opposite is in fact more likely to be true, so unless your willing to hold it for a couple of years, sell it now. In summary, in order to sell fast you will need to adapt your expectations and your price levels to an aggressive level. If you own a luxury condo of $2M+ you will notice there is a lot of inventory and the prices are correcting, as buyers are more limited and more price conscious. The $2M – $3M market is more favorable than the $3M+ market yet sellers should still be warned and follow the advise above.

David’s Conclusions on South Beach Condos The South Beach Condo market experienced a big growth spurt of new Condo product over the last few years and this resulted in an inevitable price correction as the market couldn’t naturally absorb all the product at once, older product was passed up in exchange for better and newer buildings and prices naturally have begun correcting. When you are looking to buy a South Beach condo please play close attention to the numbers both in this report and those we specifically provide when analysing individual condos. I always show my clients why I believe in a certain investment or why not. I always show buyers and sellers the numbers, the product options and discuss market forces to come to sensible and intelligent conclusion. When you are selling your South Beach condo contact me today for a comparative market analysis. Depending on your personal goals and what you bought your property for, we can decide whether it’s better to hold on to your condo or to sell it now.

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SOUTH OF FIFTH

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2016 Complete Miami Residential Real Estate Report

South of Fifth | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the South Beach Condo Market This chapter analyses the South of Fifth Condo market and this report can actually be applied to the specific condo owners and buyers in specific price ranges. Here below we present the key finding for the SOFI.

South of Fifth condos for Sale | The 2016 South of Fifth condos Report Below you will find the results for the 2016 South of Fifth Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

35 $715 -7%

24 $981 2%

29 $1,072 -1%

26 $1,360 -3%

28 $1,777 -8%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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South of Fifth | Condo Report Overview

The very southern point of South Beach is home to many luxury condos and was subject to a great amount of brand new condos in the last few years (321 Ocean, One Ocean, Glass 120 Ocean, Marea, Louver House, Sofi House and 300 Collins). The months of inventory for properties below the $2M shows reasonable numbers albeit that the South of Fifth condos are experiencing a buyer’s market. Just like the rest of the Beach, South of Fifth is seeing a price correction and rising levels of inventory within the luxury markets of $2M+ condo residences. South of Fifth saw a massive increase of inventory in the last years as many new condos were released into the resale market. It must be said that many of these condos are boutique style residences with a limited amount of units but these new condos together with the new inventory in the rest of Miami Beach caused the luxury SOFI market to experience some distress. Struggling global economies and currencies combined with a general cooling down of the market made South of Fifth’s luxury condos experience a period of price corrections and heightened inventory. Even South of Fifth’s luxury condo Continuum, which since its opening in 2008 saw only increasing prices experienced a lower price level than the previous year for the first time in its history.

Advice for BUYERS South of Fifth is a very unique piece of land that has been much sought after for decades. The market got overheated in the last few years but that does not mean there are no more good opportunities. Every market has great opportunities and the South of Fifth market shows reasonable inventory. Like in any other market, when buying South of Fifth condos it is important to check for the right price. Many sellers are selling their condos for high prices as in past years many sellers sold above market value. Today we see adjusted price levels in South of Fifth, but as a buyer always pay careful attention to the right market prices and have your realtor do comparative market research. Those looking for a quick flip missed the boat. Today’s market makes flipping a condo unit increasingly challenging.

Advice for SELLERS Owners of South of Fifth condos need to be more realistic when it comes to their listing prices. If you want to sell your property you need to know that todays buyers are more price conscious and the market has cooled down. Especially sellers of luxury condos in South of Fifth will see a large number of competing units and decreasing prices. As South Beach is also seeing a large amount of months of inventory which will see another jump when all pre-construction condos are going to be delivered you might want to check now whether selling will work for you. If you are in no rush to sell I would hold on to the unit until the market becomes more bearish again. If you are looking to sell within the next months, then now might be a good time.

David’s Conclusions on South of Fifth In general I feel bearish about the South of Fifth real estate market. This small part of South Beach has always shown potential and gets lots of international attention. Please contact me in case you are looking to buy. Ill be able to provide you with an indepth and transparent overview of the status of the market and market prices. I always get the best possible deal for my clients and I don’t shy away from telling you when a deal is not in your advantage. In case you are looking to sell your South of Fifth condo, please contact me today for a personalized chat and a Comparative Market Analysis of your unit.

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2016 Complete Miami Residential Real Estate Report

EDGEWATER

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2016 Complete Miami Residential Real Estate Report

Edgewater | Condo Report

A Stock Broker’s Style Study of the Edgewater Condo Market This chapter analyses the Edgewater condo market. This report can actually be applied to the specific condo owners and buyers in specific price ranges. Here below we present the key finding for the Edgewater Real Estate market.

Edgewater Condos for Sale | The 2016 Edgewater Condo Report Below you will find the results for the 2016 Edgewater Condos Real Estate Report. Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

33 $454 1%

41 $612 -7%

n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

Overview Edgewater is now part of the extended core of greater downtown Miami. In the last few years Edgewater transformed from a rather unknown and undeveloped neighborhood into one of Miami’s most focused upon condo markets. As waterfront lots became scarce in the rest of Miami - especially Brickell and Downtown, developers flocked into Edgewater to build their luxury condos with direct bay views. This condo boom started around 2012 when Icon Bay was announced and building continued through 2015 and into 2016 with many brand new luxury condos being announced on what felt like a weekly basis. As Brickell was getting more expensive and new condos were often built on dry lots many developers looked to Edgewater waterfront lots. The Edgewater condo towers sold in no time, prices were rising rapidly and the new developments kept on coming. Many investors however bought the units for the purposes to rent out, much like in other parts of the Urban Core. When these condos were finally delivered (between 2014 until the present) many owners were looking to sell for a premium. Because many of these condos were delivered within the same time frame and the owners’ profile of many were short-term investors you can see why it experienced a rapid rise in

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2016 Complete Miami Residential Real Estate Report

Edgewater | Condo Report

inventory. At the same time, estimated developer prices in Edgewater have been increasing at a rapid pace, in some cases surpassing those of Brickell and Downtown. As the Miami real estate market is experiencing a moment of recalibration in which buyers are more price conscious, many sellers find it hard to get their desired return on investment and their unit remains on the market because they are over reaching or over estimating their values. The end of the inventory rise is not yet in sight as we still have a sizable number of other projects to be finished and open: §§ §§ §§ §§ §§

§§ §§ §§ §§

As can be seen from the data table, inventory levels in Edgewater are high. Prices have also decreased in the $1M - $1,5M range, but it must be mentioned that 2015 saw almost all sales occur in the luxurious Paramount condo while 2016 saw more sales in the smaller Edgewater condos. The $1,5M+ market in Edgewater doesn’t have high levels of sales. Because of the limited sales numbers we didn’t include these price ranges in this report. Next year we will expect to see higher sales numbers in the resale markets of these higher price brackets.

Advice for BUYERS Buying in Edgewater is no longer advised in the $500,000 to $1,5M price range. The market is seeing a rising supply, which will increase even more when above-mentioned condo towers will enter the resale market. Unless you can buy for an extremely attractive price or bought earlier on in the cycle we would not advise buying right now. The $1,5M + market is rather scarce in Edgewater with only some of the pre-construction Penthouses reaching those multi-million prices. Missoni Baia and Elysee are both part of the new extreme luxury condo market for this neighborhood with unit prices at a price point around $1.5m and well above. Both Missoni and Elysee are more of a unique concept for this neighborhood with only 1 or 2 units per floor and needs to be analyzed and appreciated slightly differently to the rest of the pack. Regardless caution is advised.

Advice for SELLERS If you are a current owner in Edgewater (or soon to close in one of the new buildings) and wants to sell in the next 18 months then it is wise to pay close attention to the current sales prices per sqft within your building and the area as well as the predicted prices for the new buildings entering the market (as experienced Brokers and analysts we can advise you on your units true value as well as list and sell it for you). Owners should also track the rental market closely as many units have been bought to rent out as investments. The Edgewater market is experiencing by and large an increasing supply of product like the rest of the urban core and the rental market will need to absorb much of the inventory before the market stabilizes again. In case you want to sell you need to realize this is not 2014/2015 anymore when sellers gained massive returns on investment. In today’s market one needs to price the unit at fair market price and not above. Holding on to your unit won’t help going into 2017 as more units will enter the market creating more downward pressure not less on price levels. Units priced for $1,5M or above are scarcer but don’t lose sight of the fact that the market is experiencing a more sober year with regards to the ‘luxury’ buyers being more conservative. It might take a while before you find that right buyer if you don’t provide real value.

David’s Conclusions on Edgewater Condos Prices increased rapidly in the last few years in Edgewater but even though there are many waterfront Condo options there are several that have proven to be of relative poor quality, so caution be advised. As you can see the months of inventory of Edgewater condos is actually quite high while $ per sqft prices have surpassed many of those found in neighboring Brickell and Downtown. There is still a considerable amount of condos to enter the market while some owners struggle to sell the current listings. Numbers suggest that this market could experience some price moderations. For those who want to protect their financial assets as much as possible and require a 1031 exchange (to avoid capital gains) look to the ‘green sectors’ of the market in the master table. The green areas are investment markets with low inventory levels and rising prices. We are known for thinking out of the box and as such we also advise investors to look at other lesser known niche markets and communities can also be considered – such as the Roads and Shenandoah. Please call directly to gain specific knowledge and advice on these.

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2016 Complete Miami Residential Real Estate Report

KEY BISCAYNE

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2016 Complete Miami Residential Real Estate Report

Key Biscayne | Home Report

A Stock Broker’s Style Study of the Key Biscayne Residential Real Estate Market This chapter analyses the Key Biscayne Real Estate market for both homes and condos. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for Key Biscayne.

Key Biscayne homes for Sale | The 2016 Key Biscayne Real Estate Report for Homes Below you will find the results for the 2016 Key Biscayne Residential Real Estate Report. Buy $500,000 - $1M

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

n/a

11 $931 6%

25 $737 -15%

27 $452 -4%

n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Homes Sold 2015

Homes Sold 2016

Homes for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

Overview Key Biscayne is arguably one of Miami’s most exclusive places to live. Located on a 12-mile long island off Brickell and Coconut Grove, Key Biscayne offers the ultimate waterfront living. The exclusive and often waterfront homes attract the world’s wealthiest families and real estate investors, often looking for a solid place to raise their family. For families the most attractive aspects are the island’s safety (with 24/7 police control), the presence of one of the best public schools in the USA, and the high-end quality of life and social scene. Other advantages are the great beaches, national parks and golf courses as well as the proximity to the Financial District in Brickell, Coconut Grove and even Miami Beach.

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2016 Complete Miami Residential Real Estate Report

Key Biscayne | Home Report

Key Biscayne offers one of Miami’s most luxurious homes. Starting at $1,5M, this sub market saw 11 months of inventory with increasing prices. Only 4 homes sold in 2016 within this price range of which 50% sold for more than $1,000 per SF. Even though the market increased in value, it should be noted that with this limited amount of sales, we need to be careful with making strong conclusions. As this is Key Biscayne’s most affordable market many people try to buy the more dated homes, which are often listed within this price category to build the home of their dreams. The $2m-$3m homes saw 25 months of inventory and a price decrease of 15%. With only a handful of sales in 2016 it is unfair to make strong conclusions. Three of the sales were in the $600 per SF range and skewed the data significantly compared to 2015. The market of $3m+ homes saw a slight decrease in prices with 29 months of inventory. This market also saw waterfront homes decrease by 17%. The waterfront market in 2015 showed better-finished and more luxurious homes for sale than 2016, which had a strong impact on the average price levels and led to the price decrease. For the non-waterfront homes, it is more a combination between better-finished homes in 2015 and the overall market correction in 2016.

Advice for BUYERS

Advice for SELLERS

Miami is currently experiencing a slower market in which sellers are asking unrealistic prices, inventory is rising and home prices need to be adapted in order to restore a healthy market. I do however believe in the growth of the Key Biscayne home market. The key’s unique location and living environment makes it a very desirable place for families to raise their children. The fact that Key Biscayne is an island with only a limited amount of homes and many residents being long term, primary home owners makes it a typical market that in the long run will always have a healthy supply and demand curve. Key Biscayne offers some great gems from the more dated properties that can be rebuilt or remodeled into your own personal taste to multi million dollar mansions. As long as you pay the right price this market offers great investment potential.

Many sellers today are expecting unrealistic numbers as the past few years were characterized by extreme fast sales often for prices far beyond the market value. In today’s market sellers need to be more realistic in order to sell their property. If you feel you bought your property for a fair price in the last few years, there is a good chance you can still make profits when selling today. Those who paid a high price for a property that is currently in the $3M+ market, might want to think of selling. As this market is showing a high amount of months of inventory it might be hard in the upcoming months to sell your property for the profit you have in mind. Likewise you can hold on to your Key Biscayne house and wait till the market becomes more bullish.

David’s Conclusions on Key Biscayne Home Market As I stated before, Key Biscayne is a very desired market with extremely luxurious homes. This island offers a great array of (waterfront) homes but one needs to be careful to pay a market price. The fact that many buyers in recent years didn’t do so is leading us now to a market that needs a price moderation. I know the Key Biscayne market very well and I always provide my clients with transparent insights into the market and its numbers. For more information on buying a home in Key Biscayne please go to:

Key Biscayne Homes for Sale

Brand new Key Biscayne Homes for Sale

Waterfront Homes for sale in Key Biscayne

If you are not sure whether your Key Biscayne home reached its maximum value and whether you are willing to wait much longer with selling in a buyer’s market, then call me today for a personal chat and a comparative market analysis.

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2016 Complete Miami Residential Real Estate Report

Key Biscayne | Condo Report

Key Biscayne condos for Sale |The 2016 Key Biscayne Real Estate Report for Condos Below you will find the results for the 2016 Key Biscayne Condo Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

19 $528 1%

15 $718 2%

18 $859 7%

34 $1,051 9%

41 $1,195 1%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Key Biscayne | Condo Report Overview

While Key Biscayne homes start selling above $1,5M, the condo market is more accessible. Although most Key Biscayne condos were built more than a decade ago, the Key Biscayne condo market still has a number of what would be considered high-end Condo that are still very much sought after. The most popular with buyers are the Towers of Key Biscayne, Key Colony and of course and probably the No1 on the list: ‘Ocean Club’ which comprises of multiple towers. Although inventory shows relatively high numbers, the Key Biscayne condo market seemed to have flourished over the last year. All markets increased in price. The ultra-luxury market only increased by 1%, because in 2015 more of the brand new and ultra-luxurious Oceana Key Biscayne units were sold than in 2016. As this condo sells for $1,500+ per SF the numbers in 2015 were slightly higher than in 2016. (this is the last luxury Condo to be built on Key Biscayne unless some older Condos are bought and knocked down).

Advice for BUYERS Key Biscayne is an island with little place left to build new oceanfront condos. Even in recent years, when the condo market was going at full speed, only two new condos opened their doors in Key Biscayne. As this island is unique and very desired we remain confident in the Key Biscayne condos. As many buildings are slightly more dated there are still lots of opportunities to buy an older property and to renovate it to your liking. Like always, we like you to pay attention to market prices and to not overpay for a property.

Advice for SELLERS Key Biscayne is an island with little place left to build new oceanfront condos. Even in recent years, when the condo market was going at full speed, only two new condos opened their doors in Key Biscayne. As this island is unique and very desired we remain confident in the Key Biscayne condos. As many buildings are slightly more dated there are still lots of opportunities to buy an older property and to renovate it to your liking. Like always, we like you to pay attention to market prices and to not overpay for a property.

David’s Conclusions on Key Biscayne Condo Market Key Biscayne offers a healthy condo market, which is still desirable in the current climate. As Key Biscayne is a desired market with a limited inventory and limited waterfront lots for continue construction, as long as you pay the right price for the right property you should feel confident your dollar is in the right place. If you are looking into Key Biscayne condos, contact me for an in-depth overview of the market and market prices. For more information on buying a condo in Key Biscayne please go to:

Key Biscayne condos for Sale

If you are wondering what your Key Biscayne condo might be worth in order to decide whether you want to sell contact me today. I’ll be more than happy to provide you with my market expertise and a competitive market analysis.

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2016 Complete Miami Residential Real Estate Report

FISHER ISLAND

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2016 Complete Miami Residential Real Estate Report

Fisher Island | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Fisher Island Condo Market This chapter analyses the Fisher Island condo market. This report can actually be applied to the specific home owners and buyers in specific price ranges. Here below we present the key finding for Fisher Island.

Fisher Island Condos for Sale | The 2016 Fisher Island Condo Report Below you will find the results for the 2016 Fisher Island Condos Real Estate Report.

Buy $500,000 - $1M

Hold $1M - $1.5M

n/a

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$1.5M-$2M

$2M-$3M

$3M+

n/a

8 $1,071 -6%

34 $1,408 -7%

n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Fisher Island | Condo Report Overview

Fisher Island is one of Miami’s most exclusive real estate markets. The very private island is reachable via boat or helicopter and you won’t be granted access unless an inhabitant invites you. Being one of the US’s most expensive addresses it is no surprise that condos start selling at $2M. The $2M – $3M market saw very limited sales in 2015 and 2016, but we included the price range nonetheless. Prices were down by 6%, but as already mentioned both years saw a very low number of sales, which has a skewing effect on the average price per SF. The market only has 8 months of inventory, which indicates a very well balanced market. For the $3M+ market we saw a 7% decline. 2015 Saw 53% of sales in the $1,500+ per SF range while this number was only 20% in 2016.

Advice for BUYERS Fisher Island is one of Miami’s most desired addresses and extremely unique and private. This island has its own marina and school and owners feel private, secure and save. This unique combination of elements right next to Miami Beach is something that is sought-after by families from all over the world as a second home (only 20% of inhabitants live on the island all year round) while the supply of new condos is confined by the limited space on the island. As a general rule of thumb, popular yet unique and scarce product that is hard to imitate is a good buy unless you are paying outside of the market $ per sqft parameters. The lowerend of the market with its limited months of inventory shows solid potential for long term buyers as will be units that could be bought at a low relative $ per sqft price and remodeled. Also the $2M - $3M market is the entrance level of this very exclusive market and will therefore be high in demand.

Advice for SELLERS Fisher Island condo’s are relatively unique and scarcity of the project should ensure that demand will continue into 2017. If you need to sell you will notice that the high inventory of ultra luxury condos elsewhere in Miami (although nothing compares to Fisher Island) might have an impact on your price negotiations. Nonetheless you will be able to get a great return on investment if you bought before the end of 2014.

David’s Conclusions on Fisher Island Condos Fisher Island is a very small and desired private island. As the island sees a very limited yearly turnover of units, market changes (Whether negative or positive for sellers) are easily seen. The key as always is to work with an experienced realtor who knows the market and its numbers. If you decide to use the David Siddons Group as your realtor we will ensure that you get a full and transparent insight into the market and we will show you how and why a certain investment will fit your needs. In case you are looking to sell your Fisher Island condo, we will provide you with a comparative market analysis and show you what price to best sell your condo for. We are excellent marketers that use professional photographers and exclusive videos to market your property to our international clientele and network of top producers.

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2016 Complete Miami Residential Real Estate Report

SUNNY

ISLES BEACH

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2016 Complete Miami Residential Real Estate Report

Sunny Isles Beach | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Sunny Isles Beach Condo Market This chapter analyses the Sunny Isles Beach condo market. This report can actually be applied to the specific condo owners and buyers in specific price ranges. Here below we present the key finding for Sunny Isles Beach condos.

Sunny Isles Beach Condos for Sale | The 2016 Sunny Isles Beach Condo Report Below you will find the results for the 2016 Sunny Isles Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

42 $549 6%

43 $652 -4%

43 $759 1%

61 $940 -11%

124 $1,059 -10%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Sunny Isles Beach | Condo Report Overview

The Sunny Isles market is seeing extremely high levels of inventory mainly in the luxury segments of the condo market. As Sunny Isles saw a very high amount of brand new construction units flocking into the market the sales of the more “dated” condos stagnated and inventory rose to record levels. As the brand new condos are all ultra luxury condos like Armani Residences, the Porsche Design Tower, Regalia and Jade Signature, the $2M+ and especially the $3M+ markets suffered the most. In the $2M-$3M market we saw that units started selling at $800 per SF with 50% sold over the $1,000 per SF mark in 2015, while this was only 25% in 2016 starting at $600 per SF. In the $3M+ market we saw that 2015 recorded 70% of its sales over the $1,000 per SF mark while 2016 saw only 33% of the units being sold for more than $1,000 per SF. Like in some other parts of Miami’s condo market, the higher-end of the market is experiencing a price correction, as the amount of foreign buyers investing in the Sunny Isles market has dropped from what it was a few years ago and the market is cooling down from the real estate frenzy that happened in the last 5 years.

Advice for BUYERS

Advice for SELLERS

For those owning a condo as an investment our advice is to sell it now while the market still has activity, as we go through 2017 it will only get more challenging. The inventory in most of Miami’s condo markets (apart from Coconut Grove and Coral Gables) is high and we would suggest moving sideways to a more profitable real estate product - such as single family. Depending on what you paid for your unit or the exclusivity of the unit you might will still see some solid profit on your investment but you could be eating into that the longer you hang on the fence. If you bought the property for a long-term investment, you will have to hold on to it until the market stabilizes, just ensure your CAP rate is positive at least 4% PA (call me for an explanation on calculating this for your unit) if it is not you will be losing out on other local investments that could provide much better returns.

David’s Conclusions on the Sunny Isles Beach condo market As I mentioned before the Sunny Isles condo market offers a wide range of products from more standard condos to unique residences at the Porsche Design Tower or Regalia. Contact me today for a more in-depth overview of the Sunny Isles Beach condo market for resale condos as well as pre-construction condos. It is important you work with an experienced agent who knows the market and its numbers. In case you are looking to sell it is important to consider what kind of property you own, what your long-term goals are and at what price you bought it for. Contact me today so we can decide what strategy will be best for you and at what price you could sell your Sunny Isles condo. I can help you calculate your ROI and show you other options that could work better for you.

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2016 Complete Miami Residential Real Estate Report

AVENTURA

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2016 Complete Miami Residential Real Estate Report

Aventura | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Aventura Condo Market This chapter analyses the Aventura Real Estate market for Aventura condos. This report can actually be applied to the specific condo owners and buyers in specific price ranges.

Aventura condos for Sale | The 2016 Aventura condo Report Below you will find the results for the 2016 Aventura Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

31 $327 -4%

49 $425 -1%

66 $544 3%

36 $567 -7%

25 $750 -5%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Aventura | Condo Report Overview

The Aventura market is by majority down in 2016 due to an increased amount of inventory (caused by reduced activity in the buyers market for resale product, and the greater attention we saw focused on the new construction market that wont be recorded on the public records until 2017) The market is seeing high months of inventory across the board combined with slightly decreasing prices. I would say that this is due to the fact that the amount of foreign investors have decreased and the weakening of specific foreign currencies against the dollar resulted in less sales. Across this market we see a lower price being paid for the same units from 2015 to 2016. For the ultra-luxury market we need to remark that 2016 could be slightly skewed as there is only recorded 2 sales, which has a huge effect on the average price per SF. Aventura also experienced an increase in supply because many buyers focused on the soon to be delivered pre-construction condos. Products like Echo Aventura, Bellini and Marina Palms sold many units and these brand new Condos have been very much what the luxury buyers have put their focus on.

Advice for BUYERS

Advice for SELLERS

There is a lot of inventory at this very moment and we are starting to see some sizeable reductions on the listing prices. If you are looking to buy for longterm purposes, don’t be afraid to allow us to come in and negotiate hard. If you are looking for a short-term investment or to buy something temporarily I would advise to hold fire until the market reaches inventory balance or the specific numbers on the purchase make sense). There are some great Condos here – such as Prive on Williams Island. I am well positioned with my team (one of which is an expert in Aventura) to tell you what is going to best.

If you are looking to sell your Aventura condo, price your property as close to the current market value as possible – do not try and work outside of the market parameters or you will get burned with dropping prices – you don’t want to be chasing the market down. We will show you the recent sales in your building and the area to assist before you list the property.

David’s Conclusions on Aventura Condos Aventura is still well respected and thought of as a condo market with many large, waterfront condos often located in exclusive communities - Condo like Prive on Williams island. As a neighborhood it does offer a good quality of life and it may be the ideal place to settle, but please know the numbers before either going in or getting out. Let us share these with you. Please contact me today for a complete overview of existing and pre-construction condos in Aventura. We will be able to provide you with the best market overview and a great deal. In case you are looking to sell your Aventura condo please call me for a Comparative Market Analysis and a personalized chat.

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2016 Complete Miami Residential Real Estate Report

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2016 Complete Miami Residential Real Estate Report

Bal Harbour | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Bal Harbour Condo Market This chapter analyses the Bal Harbour condo market. This report can actually be applied to the specific home owners and buyers in specific price ranges.

Bal Harbour Condos for Sale | The 2016 Bal Harbour Condo Report Below you will find the results for the 2016 Bal Harbour Condos Real Estate Report. Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

28 $550 0%

18 $588 -3%

10 $755 -15%

21 $1,131 -3%

67 $1,209 -34%

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Bal Harbour | Condo Report Overview

Bal harbour experienced a rather unfavorable year. The months of inventory reveal high levels and the prices dropped considerably across several (but not all) price points. More expensive Condo units were sold in 2015 than in 2016. The Bal Harbour condo market is home to a handful of luxury condos such as the St Regis Hotel and Residences and the Ritz Carlton Bal Harbour (previously One Bal Harbour). Most of the condos in Bal Harbour are slightly more dated though, while the majority of buyers prefer focusing on newer buildings. Bal Harbour’s prices increased considerably in the last few years partly because of the St Regis residences boosting the prices for the entire neighborhood. With surrounding areas such as Miami Beach and Sunny Isles starting to offer more luxury products, Bal harbour’s luxury market started to suffer. While Bal Harbour once was the hub for ultra-luxury shops with the Bal Harbour Mall the rest of Miami didn’t sit still and luxury areas such as the Design District emerged as another destination for high-end retail shopping. Next year we will see Brickell City Center add to the competition.

Advice for BUYERS

Advice for SELLERS

Bal Harbour seems to be going through a challenging period – but its important to recognize that this is an extremely niche market with only a very small handful of high end Condos. The market has seen falling prices in 2016 and increased competition in flourishing surrounding areas. Unless you have a certain affection with Bal Harbour we would advise caution but we always remember there is a floor to every market and we should not forget that Condo product like St Regis is still very good quality albeit expensive and if you can encounter a unit that is for sale at a price inline with other luxury Ocean front resort Condos (or below), it could be worth buying.

As stated in the tips for buyers, the market is seeing a drop in prices, Competition in surrounding areas in fierce, inventory across the board in high. Unless you bought a unique unit, facing the water for a good price, which you can easily sell for a profit we would suggest to sell and to invest your dollar in a more promising area. Be conscious of the existing competition as well as new Condo competition. If you bought in the new Oceana Condo and are looking to sell, please call me for a specific analysis as new Condos will require a special kind of focus and strategy.

David’s Conclusions on the Bal Harbour Condo market We do not want to cause to much negativity around the Bal Harbour Market but the general feeling is that this market is correcting. If you choose to buy one of the more desired or newer condos and make sure you pay the right price for the your unit - I can tell you what this should be. If you are looking to sell your Bal Harbour condo, please call me today for a personalized chat and to see what price you might be selling for. At the same time I can provide you with an overview of other more profitable Miami areas, which will provide you with a better return on investment should you need to re-invest for a purpose of a 1031 Exchange.

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2016 Complete Miami Residential Real Estate Report

BAY HARBOR ISLANDS

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2016 Complete Miami Residential Real Estate Report

Bay Harbor Islands | Condo Report

A Stock Brokerâ&#x20AC;&#x2122;s Style Study of the Bay Harbor Islands Condo Market This chapter analyses the Bay Harbor Islands Condo market. This report can actually be applied to the specific condo owners as well as buyers in specific price ranges.

Bay Harbor Islands Condos for Sale | The 2016 Bay Harbor Islands Condo Report Below you will find the results for the 2016 Bay Harbor Condos Real Estate Report.

Buy

Hold

Cases that will need additional explanation as a simple sell or buy advice will not suffice

Sell

$500,000 - $1M

$1M - $1.5M

$1.5M-$2M

$2M-$3M

$3M+

32 $369 28%

n/a

Percentage of change in average sales price for 2015 as compared to 2016 Q1 - Q3 Price per Sq.Ft is the average price per Sq.Ft from 2016 Q1 - Q3 Inventory given in Months of Inventory

Condos Sold 2015

Condos Sold 2016

Condos for Sale

Percentage per price range $500 - $1M

$1M - $1,5M

$1,5M - $2M

$2M - $3M

$3M

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2016 Complete Miami Residential Real Estate Report

Bay Harbor Islands | Condo Report Overview

The Bay Harbor Islands has in the last 3 years become rediscovered and redefined as a hot new condo investment area - on account of its changed construction zoning laws. While other parts of Miami were drying up or becoming quite expensive, developers started looking into the Bay Harbor Islands and a handful of waterfront luxury condos were launched. Sereno on the Bay and the O’residences were the first condos to launch. They were both extremely popular and sold out quickly. These condos were then quickly followed by Kai, Harbour Park, Pearl and Le Jardin. The Bay Harbor Islands are mostly concentrated on the more affordable* end of the market with little to no sales in the $1.5M+ market. This will change in mid 2017 as some of these soon to be finished condos will be offered on the resales market. As this condo market is divided between the very dated and basic Condos (many built in the 1970’s and 1980’s) and the recently constructed newer boutique but by comparison luxury Condo, it is hard to make strong conclusions. We can say however that the market below $1M saw a slight increase of inventory - after all, many new buyers focused their wallets on the new condos. The general thought is that this neighborhood has great potential to improve over time and offer some boutique luxury condos at affordable prices.

Advice for BUYERS

Advice for SELLERS

The Bay Harbor Island offers some great new condos. Prices are still relatively low compared to the rest of Miami while residences are modern and often offer bay views. Besides that, you are very close to Miami Beach without having to pay the prices of Miami Beach properties. Products like Sereno on the Bay and ‘O’ Residences offer docks for boat lovers and these condos will be hold a strong appeal in the resale market. We would advice buyers to look into the up and coming Bay Harbor Islands market as prices have room to increase and there is lots of new development going on to improve the area, among which we are seeing some brand new townhome projects as well.

If you own one of the newer condos in Bay Harbor I will do well when selling. The market is just solid and there will be buyers for these units. Owner of older units or units that do not have any kind of water view do not allow current hype around the island to allow you to believe that you will have buyers flocking to buy your unit.

David’s Conclusions on the Bay Harbor Islands The David Siddons Group has confidence in the Bay Harbor Islands condo market. Besides a booming condo market, the island is getting a general facelift, which will enhance the general living conditions. Contact me today if you want to sell or buy a Bay Harbor Islands condo. I’ll provide you with a complete overview of Bay Harbor Island condos both resale units as well as pre-construction units. We will make sure you get the right property at the right price.

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