Over the past few weeks, I have pulled data from the Multiple Listing Service (“MLS”) going back to 2008 to see where the market in Miami is now compared to the “time before the crash.” All of the data I have pulled is based on closed sales over $1M USD in Miami Coastal Mainland (including Aventura, Brickell, Coconut Grove, Coral Gables, Downtown Miami, Palmetto Bay, Pinecrest and South Miami) and Miami Beach & Barrier Islands (including Bal Harbour, Bay Harbor Islands, Fisher Island, Key Biscayne, Miami Beach Islands, Mid-Beach, North Bay Village, North Beach, South Beach, Sunny Isles Beach and Surfside).
Most people know that my business is built on statistics. I advise my clients, I do not sell them. If a client wants to purchase a property, I pride myself on having the statistics to advise whether it is a good or bad investment. Obviously, not all buying decisions are based solely on stats, but knowing the market has always gotten me a lot further than how “beautiful” or “amazing” that kitchen looks or how the property was designed by “fill-in-the-blank-with-the-hot-architect-of-the-day.” People buy and sell on emotion all the time, but when that analytics professor from NYC or that money manager from Greenwich wants to buy, I want to make sure I am the numbers guy who can justify the purchase. No one knows the South Florida market statistics better than I do.
2018 Miami Mainland & Barrier Island Real Estate Closed Sales Above $1M USD:
- Total Number of Sales: 1716 (+116.7% over 2008)
- Total Sales Volume: $4,262,781,487 (+148.3% over 2008)
- Average Sales Price: $2,484,138 (+14.6% over 2008)
- Median Sales Price: $1,674,000 (+7.5% over 2008)
- Average Sales Price Per SQ/FT: $728.84 (+15.3% over 2008)
- Median Sales Price Per SQ/FT: $596.68 (+2.4% over 2008)
2008 Miami Mainland & Barrier Island Real Estate Closed Sales Above $1M USD:
- Total Number of Sales: 792
- Total Sales Volume: $1,717,164,171
- Average Sales Price: $2,168,137
- Median Sales Price: $1,557,500
- Average Sales Price Per SQ/FT: $631.90
- Median Sales Price Per SQ/FT: $582.80
As you can see above, 2018 was the new king of the Miami market, crushing 2008 in the luxury sector. What if we look at the ultra-luxury market of $10M and above?
Total Sales of $10M or More by Year:
- 2008 – 12 sales for a volume of $141,005,000
- 2009 – 2 sales for a volume of $28,900,000
- 2010 – 9 sales for a volume of $111,421,000
- 2011 – 13 sales for a volume of $191,175,495
- 2012 – 28 sales for a volume of $445,028,054
- 2013 – 23 sales for a volume of $383,025,000
- 2014 – 30 sales for a volume of $484,394,150
- 2015 – 31 sales for a volume of $531,233,501
- 2016 – 23 sales for a volume of $333,815,609
- 2017 – 24 sales for a volume of $405,851,545
- 2018 – 45 sales for a volume of $662,549,111
As of the date of this publication, there have already been 9 closings above $10M in the first 59 days of 2019…we are on pace to close 56 sales over $10M this year, surpassing the historic number of 45 in 2018 by 24.4%. Looking at volume, 2019 is on pace to close $947M+ of ultra-luxury properties, shattering the historic mark of $662M+ in 2018 by 43%!
If you are from one of the high-tax states like New York, New Jersey, Connecticut or Illinois (I am a transplant from Chicago) and are moving to Miami or you are considering selling a luxury home or condo in South Florida, please contact Broker Michael Light. Michael is the Senior Director of Luxury Sales and a member of the elite Sports & Entertainment Division at Douglas Elliman Real Estate. You may reach Michael directly at (786) 566-1700 or firstname.lastname@example.org.