Since the start of the COVID-19 pandemic and work-from-home orders, buyers have been flocking to Miami and nearby areas in South Florida. And it's not just homeowners — companies including Microsoft, JetBlue Airways and Goldman Sachs have recently moved their headquarters to Florida. The city is also luring in Tech crowds thanks heavily to the Mayor, Francis Suarez, who has been targeting Silicon Valley. These trends have seen billionaire businesspeople make the move to Miami while the local economy has seen a boom as of late. Although it's hard to say if this particular trend will continue as COVID-19 carries on, it's not unbelievable to think that workers and businesses alike may continue to take up permanent residence in the area.
When it comes to real estate, luxury homes and condos continue to be in high demand through the fall months and with listings moving fast and limited availability, average home prices have risen exceptionally in the last year. Miami recently surpassed L.A. as the most expensive housing market, coming in second only to New York City. Florida has seen a massive trend of transplants from big cities, including New York & California, where homeowners are used to paying top-dollar for real estate and higher taxes.
As such, luxury properties have been flipping for record profits with some garnering nearly three times the original investment within a short span. Last month, a waterfront estate in Miami Beach was flipped for nearly a 50% gain in just 4 months. It sold for $19 million in May of 2021 and for $28.1 million in September. Flips for luxury single-family homes are becoming more common due to the low inventory of houses available for sale in South Florida.
"This market is truly unique," says Samantha Joelle Elenson, a realtor with ONE Sotheby's International Realty for nearly a decade. Miami is thriving with its growing population. The local entertainment and culture scenes are expanding to accommodate the city's newest residents. "Miami is at the forefront for the place to be," Elenson says. The city saw a surge of restaurants open and supper clubs are gaining momentum. Last season, New Yorkers notoriously booked reservations in Miami's top restaurants months in advance so locals planning a night out would be wise to book ahead — something Miami locals may need to adjust to.
"Our city is attracting various industries and people for different reasons," Samantha explains. "I was getting calls from out-of-state clients looking to escape to Miami for their freedom as they put it. There was also a tech wave and all of a sudden Silicon Valley was looking at Miami. After the Presidential election and proposed tax adjustments, we began seeing a migration of billion-dollar businesses relocate headquarters here along with their employees. The surge of new residents caught the attention of top hospitality groups like Major Food Group from New York, which opened the almost impossible to get into Carbone and ZZ's. The city is evolving quickly and as a result new opportunities are emerging."
When it comes to real estate pricing, it's clear to see this trend continuing well into the fall of 2021 according to the data presented by Samantha's Brokerage, ONE Sotheby's International Realty, which is a leading luxury firm in South Florida. The Trends report can be viewed at https://www.onesothebysrealty.com/trends. It presents the only market report focused on Florida’s East Coast. Data is presented from a macro perspective down to a city level from Miami to Cocoa Beach.
October is now well underway and although the market in neighborhoods throughout South Florida shows signs of a shift toward seasonal trends, buyer competition, particularly among domestic newcomers, is expected to continue. Pricing for single-family homes and condominiums should hold steady or see a slight decrease through the remainder of 2021. Thanks to buyer competition, in August 2021, more than 27% of homes were sold above the asking price. By comparison, February 2021 saw just 13% of the area's homes sold above asking.
In August 2021, Miami-Dade County saw the highest average sales price. Single-family homes sold for an average of $995,538 — a 32% increase over the August 2020 average, while condos sold for an average of $556,225 — also a 32% increase over August 2020 numbers. "Buyers are struggling to get properties at asking with phenomenal terms," Samantha shares. The county saw more than 1,247 transactions close in August after an average of 41 days on the market. Homes in neighborhoods such as South Miami, Miami Beach, Surfside, Golden Beach and Bay Harbor had average sales prices exceeding $1 million with luxury homes Bay Harbor Islands boasting the highest average sales price at $8.625 million and homes in South Miami selling for an average of $1,184,063 — 26% more than in August 2020.
Throughout Miami-Dade County, available listings have increased slightly over the past few months, with 3% more available listings in August than in July 2021, when available listings hit a record low. As the availability of homes for sale increases in South Miami and other neighborhoods throughout Miami-Dade, average sales prices are seeing a slight downward trend. However, the Miami housing market remains hot and competition among buyers is at an all-time high, meaning homes are selling fast and sellers are seeing full-price offers and bidding wars over properties. As fall progresses, it's expected that competition for luxury homes in South Miami and other sought-after communities in the area will continue. "Clients traveled this summer as countries reopened but the housing demand remained high even without their presence," she says. "I expect as the season approaches those who were unsure of an address in Miami, will return to the sunshine state where they happily found refuge last season with all of their friends."
Overall, the South Florida real estate market continues to thrive in the fall of 2021. Competition is at all-time highs while average sale prices remain among the highest in the country.
About Miami Luxury Waterfront Homes
One of ‘America’s Best Real Estate Agents’ as ranked by REAL Trends WSJ, native Floridian Samantha Joelle Elenson specializes in waterfront luxury properties, beachfront condominiums, and upscale property developments in and around Miami and Broward County. Raised in Golden Beach, Florida, Samantha is a third-generation real estate professional who draws on more than 40 years of family real estate development and investment experience. Since joining ONE Sotheby’s International Realty in 2012, Samantha has achieved residential real estate sales totaling more than $75 million. Her goal is to connect clients with the finest real estate properties in South Florida and provide each buyer or seller with personalized customer service complemented by her exclusive network, shrewd negotiating skills, and professional expertise. Her concierge approach to her clients and unrelenting passion for real estate are hallmarks of her service. Visit https://www.miamiluxurywaterfronthomes.com/.
Miami Luxury Waterfront Homes
Samantha Joelle Elenson