What’s the state of the Miami Beach market?
Miami Beach real estate market is going through a mixed period. Condo prices seems to have gone down, which makes it a good time to buy on the beach. The same applies to luxury homes. However, the rental market continues to be relatively strong.
In the last couple of years, we’ve seen tightening regulation on short term rental, which has impacted the number of investors interested in buying in Miami Beach but also increased the inventory of long-term rentals since owners were forced to convert their short-term rental opportunity into a long-term one. That increased rental supply has eased the upward rental pricing. This article from cnbc.com details the aggressive approach adopted by the city of Miami Beach to fight short-term rentals and protect its hotel industry. Some owners have been fined as much as $25,000 per instance of short-term rental when the zoning didn’t allow it, and/or the corresponding business license was not produced.
The median price for a property on the beach is around $364K based on sales in 2018. This corresponds to the average price per square foot of $522 per square foot. Prices have gone down about 2.5% according to Zillow. However, these numbers are bound to change. Although the market is cool right now and most favorable to buyers, 2019 will see an increase in Miami Beach property value. We could see an increase as high as 6%. Buyers, this is a good time to pull the trigger and acquire your Miami Beach property.
The future of the beach will eventually brighten. The key characteristic of Miami Beach is its iconic reputation. But most importantly, regarding Real Estate, there is nowhere to build and the boundaries of the city cannot be expanded. The median home price is projected to increase by $129K just in 2019. Meanwhile the median rent price remains strong around $2400 compared to the Miami-Fort Lauderdale-West Palm metropolitan area siting at $2100.
It’s important to note that prices have yet to return to their 2007-2008 pre-crisis levels. Opportunities now abound for the educated buyer. If you’re interested in looking for options and need expert advice, do not hesitate to contact us here or 305-850-6445. For investors, we can not only help you find the right property with the ROI you’re looking for but also, since we’re a property management and construction company as well, we can handle property management in Miami Beach and repairs on your behalf.