NOTE: This blog post has been updated reflecting 5 additional waterfront Miami Beach Homes sold since December 13th when this post was published.
There are 191 Miami Beach waterfront homes for sale right now ranging from a $450,000 short sale on Hawthorne Avenue right outside Biscayne Point Island, to a $49,995,000 Star Island Mansion. Miami Beach waterfront homes are highly coveted world wide and they are priced according to condition, size, location and views...but VIEWS and LOCATION are key.
The formula to understanding the Miami Beach waterfront home market is knowing that no matter what the comps are, most buyers are cash buyers and price is determined mostly by desirability of the property, not so much by how much other comparable homes have sold for. This is a total anomaly and difficult for a lot of buyers to understand, especially if you are looking to upgrade from a non-waterfront home, or are ready to make the switch to this very desirable lifestyle.
Let's take Shaq's Star Island home as an example because the price range cannot be any more random. He purchased the home in 2004 for $18.8 Million, then listed it for $32 M, increased it to $35M and ended up selling it for $16 Million! To top things off, the buyer, Vladislav Doronin, ended up gutting the entire mansion. That's a $16 Million fixer upper for you! Only in Miami Beach.... or shall we call that a MIAMISM ? :)
Another example is the current real estate housing trends of The Sunset Islands, one of the most esteemed sets of islands in Miami Beach. Desirability starts at Sunset Island I, then II, then III and historically, Sunset Island IV has fallen in last place. You will see below that the only 2 sales this year in the Sunset Islands have been 2 distressed sales in Sunset Island IV at ridiculous prices. Does that mean that a $1.3 Million ticket price on a sold house will determine where the current $25 Million listing will sell? Not a chance!
So keep in mind that not everyone is willing to throw money up in the air, and not everyone is a tire kicker either. Average price per square foot has dropped in all of Miami Beach, but this is not the end of the world and some sellers are still getting top dollar for their homes...look at Bosh's $12.3 Million purchase.
I decided to give you true numbers and stats to paint a perspective of the Miami Beach waterfront home market, but the more I look at these numbers, the more I see an abstract or even a surrealist painting. So take these with a grain of salt and make sure you work with someone that has experience in this market.
There have been were 65 70 waterfront homes sold in Miami Beach in 2010. Let's break this down to each Miami Beach island/s:
- 4 waterfront sales in Palm Island - averaging $814 / sq.ft. with the highest sale for a 12,184 sq.ft. home located at 55 Palm Ave, which sold for $11.95 Million.
- 4 waterfront sales in Hibiscus Island - averaging $695/sq.ft. with highest sale for an 8,096 sq.ft. home located at 269 N Hibiscus selling for $5.4 Million
- 8 9 waterfront sales in The Venetian Islands - averaging $634/sq.ft. $625/st.ft. with the highest sale for a 4,200 sq.ft. home located at 303 E. Dilido selling for $3.4 Million
- 2 waterfront sales in The Sunset Islands - averaging $555/sq.ft. but keep in mind that these were facing South towards condos on island IV on a narrow canal (not your typical Sunset Island sales). The highest sale was for a 2,255 sq.ft. home located at 1440 W 21 Street, selling for $1.6 Million.
- 4 waterfront home sales in La Gorce Island - averaging $880/sq.ft. with the highest sale for a 17,183 square foot home at 88 La Gorce Cr, which sold for $16 Million (highest sale this year in all of Miami Beach)
- There have been no sales in Allison Island this year
- 11 waterfront home sales in Normandy Island - averaging $280/sq.ft. with the highest sale for a 3,446 sq.ft home located at 1045 N Shore Dr, selling for $1.6 Million (North Normandy - open bay)
- 1 waterfront home sale in North Bay Island - at $330/sq.ft and located at 7520 Miami View Drive and selling for $1,679,373 (I wonder what it took to come up with that number)
- 12 14 waterfront home sales in Biscayne Point - averaging $287/sq.ft. $291/sq.ft. with the highest sale for a 4,100 sq.ft. home located at 1525 Cleveland Rd, selling for $1.625 Million
- 2 waterfront home sales in Stillwater Island - averaging $325/sq.ft. with the highest sale for a 2,210 short sale located at 1480 Stillwater Dr, selling for $710,000
- 6 7 waterfront home sales on Pinetree Drive - averaging $543/sq.ft. $487/sq.ft. with highest sale for a 7,595 sq.ft. home located at 5245 Pinetree Dr, selling for $5.25 Million
The remaining 3 waterfront homes sold in Miami Beach this year were right outside one of the islands or on an inside canal, still desirable waterfront, but not as much as the islands.
An even better perspective of the performance of each island is through this graph, although the figures are a bit skewed because of the lack of sales. The Sunset Islands have historically sold for more per square foot than The Venetian Islands, but that is not reflected in this year's sales.
Many times you call us and ask us about desirability of each island and why the disparity in price ranges. I think that same difference is a good tool to weigh desirability. Star Island showing the highest price per square foot, followed by La Gorce Island, then Palm Island, followed closely by North Bay Road.
As much as I hate scripts and we're taught to say "a home is worth what a buyer is willing to pay and a seller is willing to accept"...it could not be more true when it comes to Miami Beach Homes, especially when dealing with waterfront homes. Even with that, there are still some great buys out there....bank owned properties and sellers that NEED to get out, but it's not the norm.
**all information obtained from the SouthEast Florida Multiple Listing Service**
**There were 5 additional sales at the end of the year that were not originally reflected in this article (originally published December 13th, 2010)
- 5310 N Bay Rd - sold for $9,100,000
- 226 W Rivo Alto Dr - sold for $1,800,000
- 5223 Pinetree Drive - Short Sale sold for $1,600,000
- 1707 Cleveland Rd - sold for $1,300,000
- 1824 Cleveland Rd - Foreclosure sold for $403,000