All posts by jose@joselayare.com

Murano Grande Condo – Closed Sales 2017 vs 2018 – What’s going on in the market?

What’s going on in the Miami Real Estate market? Is a question I get often. So I decided as I was preparing another mail-out that I would go into detail about the sales activity for one of the condos that I follow, Murano Grande located at 400 Alton Road in Miami Beach’s most exclusive neighborhood for condos, South of Fifth.

A little background on the area first. South of Fifth has become one of the most exclusive areas in all of Miami located on the Southern-most tip of Miami Beach. One of the main reasons is location, location, location. It is surrounded by water on three sides, Biscayne Bay to the West, Atlantic Ocean to East and the Government Cut channel on the South which connects Biscayne Bay to the ocean thus allowing most high rises in the area to have amazing views, and one of the main reasons you will find some of the best Miami Beach condos here. Some of the most luxurious and exclusive condos in South of Fifth include Apogee South Beach, Continuum North and South Towers, Glass Condo, One Ocean, Portofino Tower, Icon South Beach, Murano Grande, Murano at Portofino, Ocean House and 321 Ocean. If you want more info about these condos you can click here to visit my main site.

South of Fifth is not only known for its magnificent and peaceful location but it is also home to world-famous restaurants, top-notch beaches, and gorgeous parks. One of the oldest and most popular restaurants is the world-renowned Joe’s Stone Crab which has been in business since 1913. Other famous area restaurants include Prime 112Estiatorio Milos – Miami and  Smith and Wollenksky. Another nice thing about South of Fifth is that there is not much commercial development which helps make it a great residential area and thus escaping most tourists radars and adding to the appeal and exclusivity of South of Fifth.Murano Grande Condo

 

Ok, that was a little bit about the area now back to the sales data.

I compile sales data for Miami Beach Condos, and this was one of my most recent postcards. I thought I would take the opportunity to go into details regarding the sales data I had just compiled as I felt it was a good indication of the Miami Real Estate market in general. I have a degree in Finance so yes I enjoy sales data… putting it together and then analyzing. 😃

Here are the postcards I created, and then below I will go into details on the sales data…

Murano Grande Condo - Closed Sales 2017

Murano Grande Condo - Closed Sales 2018

The postcards above list the Closed Sales for Murano Grande located at 400 Alton Road which is one of the premier condo buildings in one of the best areas in Miami Beach – South of Fifth. The first postcard is for the 1st Half of 2017,  and the next one is for the 1st Half of 2018.

The first thing that jumped out to me was the Decrease in the Number of Sales:

1st half of 2017 = 11       vs       1st half of 2018 = 6

That’s almost half the number of sales for the same time period. 😮

This could be a cause for concern but we will have to wait and see what the 2nd half of 2018 brings. My theory right now is that a lot of would be buyers for Murano Grande have bought or prefer to buy new construction units especially given the fact the there have been thousands of new units delivered over the same time period and at lower pricing. Most of these new construction units have been delivered nearby on the other side of the causeway in areas of Miami known as Brickell, Downtown Miami and Edgewater. Some of these projects are also located on Biscayne Bay so it does give Buyers a chance to have direct water views in a new building which some people prefer even if it means not being on Miami Beach.

I also noticed that in 2018 there has been a huge increase in Average Days on Market for East facing units and also for lower floor units with obstructed views.

400 Alton Road - Murano Grande Condo

Let me explain… Murano Grande is positioned right in front of Biscayne Bay (see image to the right showing Murano Grande) so the West facing units have the most desirable view, Direct-Water overlooking Biscayne Bay and depending on what floor you are on you can also see Downtown Miami which is why there is a premium for these units. With the East facing units you get a city view and while you do get to see the ocean it’s a few blocks away. The good thing is that you only have a few low-rise buildings in between you and the ocean but you will need to be on a higher floor to really get a great view, I would say from the 15th floor and above.

Most people just look at the Sales Price and Price per Square Foot, but I always say there is more behind the numbers. Let’s examine:

The Increase in the Days on Market:

1st half of 2018 = 621       vs       1st half of 2017 = 373

That’s an increase of almost 70% for the # of Days on Market. 😮

SIX HUNDRED AND TWENTY ONE DAYS!!! That’s almost TWO YEARS to sell. Most people would look at this and be concerned but what I see is something different. Let’s dive a little deeper…

I wanted to know why are they taking so long to sell. Murano Grande is a premier building in a premier location. SO what I found was that if you look at the Original Sales Prices of the (4) units that closed you will notice that all started on the market at or close to $1.3 million but all of them ended up selling for just under $1.0 million and one even sold for under $900,000 at $860,000. This tells me two things… Yes, prices have come down but more importantly is that there seems to be stability, a floor, at these sales prices just under $1.0 million.  It’s clear to see that if you want to sell your East-facing unit or a lower floor unit with no clear view you must list it right below $1.0 million. If you do that you give yourself a high chance to sell your condo and in a much shorter amount of time which also helps keep the flow of sales moving and lowers inventory. Please keep in mind this does not apply to every single East-facing unit or lower floor unit without a clear view. If you have a really high-floor unit and/or your unit has been “recently” completely updated then you will be in a better position as far as pricing.

Another interesting note, is that the West facing units (Premier units) seem to have found their rhythm as far as Average Price per Square Foot. In both time periods they are averaging close to $1,200/sqft, which is a great sign while at the same time the Average Days on Market has held steady at around 225 days to sell or about 6-7 months. This is also a great sign and clearly shows that buyers are willing to pay a premium for the best condo units in the building. If you look at the Price per Square foot of West-facing units vs East-facing and lower floor units they are selling for almost double, $1,200 versus $600/sqft.

Price per Square Foot – 1st Half of 2017:

West View (Premium Units) = $1,197       vs       East View = $656

Price per Square Foot – 1st Half of 2018:

West View (Premium Units) = $1,279       vs       East View = $602

Ok folks, I hope this helps. Even though this is not the answer for the whole Miami Real Estate market, I truly believe it depicts a picture of whats going on in general especially with condos. Which is the following:

  1. Yes, prices have come down but at different levels for different product
  2. Buyers will pay a premium for Direct Water views
  3. If you are priced within comparable sales you will sell
  4. If you are overpriced you will not sell
  5. As more new-condo inventory comes on the market it will take longer for you to sell

Let’s see what the rest of 2018 brings. I of course am watching closely and will let you know how it continues. Feel free to scroll around this blog and the main site, www.JoseLayaRE.com and please check back often. Thank you!

 

Disclaimer: the opinions and views expressed here are those of the author and do not represent any entity whatsoever with which I am now or will be affiliated. All material presented herein is intended for informational purposes only, and is compiled from sources deemed reliable but is subject to errors and/or omissions.

Moving to Miami – A local’s take

Beach on South of Fifth

I was born and raised in Miami so writing this comes pretty easy to me. Let me start by saying I do not have a journalism degree and I write as if I were speaking so you might catch some grammatical errors here and there. Anyone looking to move to Miami should consider a few things first…

Yes, the recent tax reform has caused many wealthy Americans to move to Florida in droves, with most choosing Miami. Make no mistake about it if you are a high-income earner this new reform can save you hundreds of thousands and even millions of dollars plus you get to enjoy great year-round weather.

Yes, even Enrique Iglesias and Pitbull made a song about this topic “Move to Miami” which means many people do consider moving to Miami, and why wouldn’t you. It’s an amazing place to live. Is it perfect here? No, but Miami has a lot to offer.

I always tell people that Miami is not only part of the US but also part of the Caribbean. For its relaxed atmosphere and vibe, amazing beaches and people from all over the world. To see what I mean about the amazing beaches take a look at the beaches of Miami Beach from Google Maps – Miami Beach and you will notice their light blue colors that resemble many of the favorite Caribbean beaches. As you can tell I am a beach lover and I can continue talking about the beaches, but then that won’t really help you. So here it is…

Moving to Miami – A local’s take on how to start your real estate search.

Are you moving to Miami because of a job transfer? This kinda makes it easier for you because your search should be limited to a home within 5-7 miles of your job. You must take into account that Miami is quickly becoming a major metropolitan city and commute times must be factored into the equation of your home search. Our public transportation is a “work in progress” so proximity to your job should be looked at closely. Don’t be lured into moving a bit further to “save money” you will lose money sitting in your car on your way to and from work, and it will also add stress to your life.

Commute times must be factored in, and which direction are you travelling to and from. Do not move out West to save money if you will work in Downtown Miami or Brickell. Even though on a map it’s 10-12 miles that morning commute will take you over 1 hour, and if there is an accident it can take as long as 2 hours. The morning commute is much easier if you travel East to West or South to North. Example, if you were to get a job in Downtown Miami or Brickell the best solution would be to live in those areas but if you don’t want to then the easiest commute would be to live East which would be on Miami Beach. Do not move north to Aventura or Sunny Isles because that North to South commute in the mornings is one of the worst in town, and so is that afternoon drive home. I can write an entire blog about commuting to work in Miami but I will limit it to this section.

Are you moving to Miami and also need to move your business? This gives you free rein on where to move both your business and yourself. I would say the only “real hub” would be if you are in banking or financial services, most can be found in Brickell and Downtown Miami otherwise you can choose to move wherever you like best. I still suggest moving within 5-7 miles of where you will have your business and it’s also a good idea to have your business in a central location that’s easy for you and your employees to get to everyday.

Are you moving to Miami and have kids? – Are you sending your kids to Private school or Public? This matters, and could possible dictate where you will live. Let me give you a real world example – I will leave my clients name out though 😉

A couple of years ago I was helping a client of mine move from Brazil to Miami. He is married with 3 children ages 5-10 at the time. He told me… Jose I am moving my family to Miami and I want them to go to one of the top private schools in Miami. Now a little history first. He had bought a nice 2 bed 2 bath as a 2nd residence in one of the top buildings in South of Fifth, so he was a bit familiar with the different areas of Miami.

Long story short… from the start he thought he wanted a larger unit in the same building or neighboring buildings because he loved South of Fifth and the beaches, and he had also bought a boat which he kept at the Miami Beach Marina. So our search in the beginning was focused on a 3-4 bedroom condo in South of Fifth. They really liked one which happened to be in their same building, and they wanted to buy it and submit an offer. Keep in mind they were travelling back and forth from Brazil to Miami to see properties so time was of the essence. At the same time we were also looking into the private schools in Miami. My advice to him was the following: Let’s pick a school first and make sure we can get the 3 kids in, and then we can search for a home. Well… they finally picked the school which is in Pinecrest so that made our search a little more focused now.

I immediately thought about this scenario… 3 kids, different ages, different likes, they will be in different activities, etc… this means whoever is picking them up and dropping them off will have to make different trips as they will not all be ready to go at the same time. Then I thought… there is no way the parents will have a great experience if they live in South of Fifth and have to travel multiple times to and from the school especially considering this will be the first time they live anywhere outside of their home country. I then did what a consultant should always do. I talked to my client and his family and advised them about the commute and how long it will take and the various back and forth they will have to do while at the same time the kids will want to be closer to the school so they can also meet friends who live closeby. They thought about it and agreed with my advice and decided to narrow their search to near the school.

We then started to focus our search on homes around Pinecrest and Coral Gables and did not buy the penthouse. We ended up choosing a great home in the Pinecrest area just minutes to the school. Fast forward almost 4 years… and the kids and parents are so grateful for the home we found. When we speak or see each other they always thank me for not only helping them with the schools but also for advising them to live near their children’s school. Pat on the back for me! Please note that the condo sale would have been almost double the sale price of the house they purchased. This is how I have been trained and how I always carry myself… I put my clients interests first.

Do you buy a Miami Condo or a Single Family Home? This is more of a personal preference. What are you used to? How many are you? While homes offer more bang for their buck some people don’t care to have to maintain a home and they prefer living in a condo with all the amenities. Here’s an example – If you have a budget of $1,000,000 its easy to find, in a good and central neighborhood, a 2,000+ square foot, 3-4 bedroom home with a pool, but trying to find that in a condo within budget becomes a challenge especially since most condos tend to be smaller. Now, if you area a beach lover and want to be on the ocean then a condo is pretty much your only bet. Unless you don’t have a budget then you can buy an oceanfront single family home in Golden Beach for $20 million dollars.

Are you a boater and want to have your boat right behind your home? Most people would right away think that they can only search for a waterfront house, but that’s not the case. Here in Miami there  are condo buildings that have marinas, either as part of the complex or nearby. As a professional in this community I can guide you on which buildings have marinas and would best suit your needs.

Are you retired and moving to Miami? If you are retiring and wanting to move to Miami then this becomes more of a lifestyle decision. What do you like to do? If you want to sit on a beach all day then a beachfront condo on Miami Beach is your answer. Are you more of a city person and like to be in the center of it all. Then Brickell condo might be your best option, as Brickell is quickly becoming the center of Miami especially with the recently completed Brickell City Centre which is a mix of residences, shopping mall, movie theater, restaurants and nightlife.

At the end of the day. Always seek the advice of a real estate professional. We not only know the areas, but we will take the time to listen to your needs, and then make our recommendations. Yes, we can all search for homes for sale on our phones or tablets and look thru the pretty pictures and videos. That only gets you so far. Can you get lucky and find a great place to call home, I’m sure you can but then again why leave it up to chance. You need to engage in conversation with not only a professional but also a local who lives and works in the city you are planning on moving to. The guidance is immeasurable, and we will save you tons of time and energy and give you insights that you will not be able to find anywhere online. That is the added value we, as professionals, bring.

Best of luck with your Miami home search. Feel free to scroll around here blog and the main site, www.JoseLayaRE.com and please check back often. Thank you!

 

Disclaimer: the opinions and views expressed here are those of the author and do not represent any entity whatsoever with which I am now or will be affiliated.