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BY Michael Light / On September 19, 2020

 
Earlier this year, the virus/pandemic/lockdown (most people interchange any of these words) caused many to consider the Miami Beach real estate market on its way to crashing and burning. Everywhere I looked, headlines were written to induce visions of post-2008, plummeting values, end-of-the-world type catastrophic hyperbole that almost seemed like a self-fulfilling prophecy…many almost rooting for this.

I’ve had calls and emails with many clients both locally and globally that asked how bad things would get and how much real estate value they would lose. I even have one client who sends me YouTube videos of so-called “experts” predicting real estate values crashing. I will tell those of you reading this the same thing I told them…you CANNOT look at things, especially real estate, on such a “macro” level – the overall real estate market in the U.S. or Florida or even Miami-Dade County has no bearing on your small pocket/neighborhood/community/street or building! You must think locally!

If you ask a real estate agent “how is the real estate market” and they begin answering that question, as asked, take caution! No one can possibly answer such a broad question like that without understanding what neighborhood…what price point…what criteria…sales velocity/absorption rate/months of supply…houses or condos? Asking such a broad question will never get you an accurate answer. Furthermore, if you own a $10M waterfront home in Miami Beach, do you really care how the $500k condo market in Brickell is affecting the “real estate market?” Do you see what I mean when I say you cannot focus on the “macro” or overall view, but you must think local?

If we look at $10M+ inventory, most people would not believe that the last 6 months may have been the most active, record-setting time period in the history of Miami real estate…and this includes the dreaded pandemic!

Star Island in Miami Beach:

There are only 28 homes on Star Island in Miami Beach plus 6 vacant lots. If you look back at the sales history of homes on the island, only 1 sale occurs every couple of years. Would you be surprised, if not amazed, that 4 homes have sold, 3 land sales closed PLUS 1 more home is currently pending contract on Star Island within the last 4 months?

22 Star Island – Sold for $49.5M July 2020 (Robert Kraft, owner of the New England Patriots, rumored to be the buyer)

11 & 12 Star Island – Sold for $37M August 2020 (THIS WAS A LAND SALE – 80,000 sq/ft lot – purchased by billionaire hedge fund manager Ken Griffin)

13 Star Island – Sold for $32.5M August 2020 (A-Rod and J-Lo rumored to be the buyers)

14 Star Island – Sold for $24M August 2020

29 Star Island – Sold for $20.1M September 2020

34 Star Island – Sold for $12M July 2020 (Land Sale – 40,000 sq/ft lot)

44 Star Island – Sold for $10M May 2020 (Land Sale – 48,266 sq/ft lot)

46 Star Island – Under Contract (Was Asking $39.95M)


Gables Estates in Coral Gables:

There are 192 homes, most are waterfront, within Gables Estates in Coral Gables. Known as the most exclusive gated community in Coral Gables, Gables Estates has only seen 9 closed sales over $10M during the past 5 years…but, during this supposed “collapsing” market, there have been 8 sales in the past 5 months alone!

620 Arvida Parkway – Sold for $49M April 2020

21 Casuarina Concourse – Sold for $37.5M June 2020

700 Casuarina Concourse – Sold for $30M April 2020 (Pharrell rumored to be the buyer)

90 Leucadendra Drive – Sold for $22M July 2020

115 Arvida Parkway – Sold for $20M August 2020

340 Leucadendra Drive – Sold for $12.25M July 2020 (Partially Completed Home – Under Construction)

150 Arvida Parkway – Under Contract (Was Asking $48M)

500 Arvida Parkway – Under Contract (Was Asking $21.9M)


In addition to the two exclusive communities above, below is a list of additional, notable $10M+ closed sales over the past 6 months:

1510 W 25th Street – Sold for $24.5M August 2020 (Sunset Islands in Miami Beach)

252 Bal Bay Drive – Sold for $23.25M July 2020 (Bal Harbour)

19 Palm Avenue – Sold for $20.5M August 2020 (Palm Island in Miami Beach)

15 Palm Avenue – Sold for $19.75M August 2020 (Palm Island in Miami Beach)

38 Indian Creek Island Road – Sold for $17.028M April 2020 (Indian Creek Island)

23 Tahiti Beach Island Road – Sold for $16M April 2020 (Tahiti Beach in Coral Gables)

1635 W 22nd Street – Sold for $15M August 2020 (Sunset Islands in Miami Beach)

5050 North Bay Road – Sold for $14.2M February 2020 (North Bay Road in Miami Beach)

941 N Venetian Drive – Sold for $13.6M September 2020 (Venetian Islands in Miami Beach)

1525 N View Drive – Sold for $12.002M June 2020 (Sunset Islands in Miami Beach)

5212 North Bay Road – Sold for $11.1M August 2020 (Teardown for Land Value – North Bay Road in Miami Beach)

70 Palm Avenue – Sold for $10.85M July 2020 (Needs a Massive Facelift – Palm Island in Miami Beach)

4420 North Bay Road – Sold for $10.8M August 2020 (North Bay Road in Miami Beach)

445 + 441 E Rivo Alto Drive – Under Contract (Was Asking $19.9M on the Venetian Islands in Miami Beach)

6650 Allison Road – Under Contract (Was Asking $15.9M on Allison Island in Miami Beach)

460 N Mashta Drive – Under Contract (Was Asking $15.5M on Mashta Island in Key Biscayne)

555 Reinante Avenue – Under Contract (Was Asking $15.495M in Old Cutler Bay in Coral Gables)

35 E Dilido Drive – Under Contract (Was Asking $14.85M on the Venetian Islands in Miami Beach)

436 W Rivo Alto Drive – Under Contract (Was Asking $14.75M on the Venetian Islands in Miami Beach)

709 E Dilido Drive – Under Contract (Was Asking $10.9M on the Venetian Islands in Miami Beach)


The sales above in the Miami & Miami Beach area do not just show that the market is active, they show that the appetite for luxury single-family homes is the highest it has ever been AND that we are in a Seller’s Market at this price point! If you are from New York, New Jersey, Chicago, California (places most of the buyers are coming from while “escaping” Covid-19 in their cities), you have to understand that though the real estate market where you are coming from might be “down” at this price point, it does not mean that our market is following suit.

If you, or someone you know, would like to buy or sell real estate in Miami, please contact me, Michael Light, Founder/Owner of the Light Group at Douglas Elliman Real Estate. You may reach me directly at my office at 305-350-9842, on my cell phone at 786-566-1700 or via email at michael@miamiluxuryhomes.com.

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