Jose Laya, Real Estate Pro in Miami, FL

West Avenue, undervalued?

Asked by Jose Laya, Miami, FL Thu Sep 27, 2007

Just wanted to get some feedback from those who do business on South Beach. Yes, I know there is alot of inventory but relatively speaking I feel that condos on West Avenue specifically those on the bay side are still undervalued. What do you think?

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Answers

4
Interesting to review this old question now in August 2010. Different times but the question still applies.

In relative terms, yes some properties are undervalued at this time (August 2010). Short sales and REO distort the market. This is a temporary condition, once the short sales and REOs sell out, the values will stabilize at their "normal" values.

In some buildings, such as the Waverly at South Beach, the price tendency now is up despite the REOs and Short sales and decreasing prices in other areas. I am the President of the Condo Association at the Waverly and we do feel that there are some under valued units at this time. Especially in view of the excellent financial position of the Association and the lifestyle offered by the building.

However, ultimately the buyers set the price and that is the market value at any one time.
0 votes Thank Flag Link Thu Aug 26, 2010
I'll agree with kevin; if the properties were undervalied, most would be sold-out and people waiting in droves to buy. Obviously that is not the case. West Avenue has some wonderful attributes, but being 12 blocks (or so) from the beach is a shot in the arm. West Avenue, with bay views at attractive pricing, is in my opinion a good value.
0 votes Thank Flag Link Fri Dec 21, 2007
Thanks for the answer Kevin. I do believe that West Ave gives you the best bang for your buck. Using the term undervalued would signify a market that is inefficient. I knew when I posted the question that I should've replaced the term "undervalued". I will say that it's nice to see that corridor change throughout the years. Now, with the addition of local restaurants such as Oliver's and even a Starbuck's for your morning coffee, West Avenue has become more lively. It's nice to see young people walking their dogs, riding bike or taking a jog down the Ave, while having a local spot to hangout.

Regarding Flamingo... it has been a gravely mismanaged project and has not sold out due to various other reasons aside from price.
0 votes Thank Flag Link Sun Sep 30, 2007
I would have to say no, that they are not undervalued. Since most of those buildings are matured, they are selling at what the market feels that they are worth.

You'd have to remember that there aren't really any new, luxury buildings in that neighborhood. Capri is the only one--and that will be the most expensive of them all.

If the market feels that West Ave are is undervalued then the Flamingo would be totally sold out.
0 votes Thank Flag Link Thu Sep 27, 2007
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