In a weary market, prime locations and properties are the last to go down and the first to come up.
I'll tell you what I think: it will continue to fall. Want to know why? Because the buyers are not there. Just like with anything else, the high end market in Miami beach is dependent on attracting wealthy buyers. If they can't do it, and they have not [and will not in sufficient numbers], then it has to fall.
We, as agents, need to continue to inform and educate others on the true picture of real estate in this amazing city, Miami Beach. As I tell everyone I come in contact with... Miami is not the same as Miami Beach.
Then you have the non water front condos and the water front condos.
The media which is based in NYC does not know or does not want to know how to break down the market here and explain to the viewers the difference and where the best deals exist.
This is why you have such a panic among out of town owners and buyers who only see the media's perspective of what is going on. The luxury market will always be stronger than the traditional real estate market.
Because luxury home real estate buyers have a ton of disposable income and they can always afford to ride out a storm.
The Miami Beach High End condo market continues to be strong. The only thing we are seeing right now is high levels of inventory, which is affecting the market in general. Due to our wonderful location and year-round tropical climate Miami Beach continues to draw millions of visitors per year, this translates into continued demand for oceanfront condos. Kevin is right on with his response!
I always tell buyers two things...
1) Must buy in a great location, oceanfront or bayfront.
2) Must buy the best unit in the building.
Regarding the ocean front condo market in Miami Beach, prices havenâ€™t significantly appreciated. Rather, on average they have remained flat which is much better than what his happening in the other parts of the market. The economics of ownership are behind this trend. Owners of luxury oceanfront condos tend to be people who own three or more properties around the world. Unlike their counterparts in the low to mid end of the market, they have the financial strength to wait things out and remain firm on their prices. I have seen this time and time again this year. Many buyers interested in luxury oceanfront condos come to me with the misconception that what they hear from the media applies to the high end of the market and some make low-ball offers without success.
In my personal opinion, oceanfront properties will remain strong, nothing like having sand and beautiful sunrises right in your back yard.