Recent real estate transaction activity seems to indicate a slight positive shift across some of the beachfront condos. It’s not obvious looking at Key Biscayne statistics overall, but a slight uptick emerges in the detail.
At a glance, Key Biscayne real estate trends pointed in a consistent direction over the past four years. We’ve had slower activity, increased inventory and decreasing prices. Additionally, Key Biscayne condo sales activity year-to-date is tracking 16% less than the same period last year and the average price per square foot has decreased 12%. Condos are taking an average of seven months to sell. There is still an abundant supply of inventory.
But how about some positive news?
While activity has been slower year-on-year, some buildings have shown a healthy uptick. At the Commodore Club, 21 units sold or are under contract this year compared to 13 sold during the same period last year, representing a 62% increase. Sale price of standard two-bedroom units at the Commodore Club have dropped to the $500,000s. The well-priced condos are moving faster given the decreasing inventory. Over the last week, a Commodore Club unit came on the market for $549,000 and quickly received multiple offers, going under contract in just one week.
At the Ocean Club, there has also been an uptick of sales throughout the year. 12 units sold during the third quarter compared to nine units sold in the first two quarters combined. In particular, several Ocean Club units priced in the $1.5 million range have closed over the last 60 days, and suddenly, the good opportunities within the same price segment seem a bit more difficult to find at this luxury complex.
Inventory remains high, but the best options are being absorbed at a faster pace. For example, at the Ocean Club, Resort Villa I #205 offered at $820,000 just went under contract within a month. The last unit like this one to sell was actually the unit just a few floors above: Resort Villa I #PH5. By contrast, #PH5 was on the market for over three years and finally sold in 2018 for $790,000.
Casa del Mar has benefited, with seven units sold year-to-date versus just two during the same period in 2018. Other beachfront condos have had flat or decreasing activity. Being realistic and pricing for today’s market is key.
Key Biscayne single-family homes have remained sluggish. More than half of the houses sold year-to–date fall in the $2-4 million pricing segment. As discussed in prior articles, the elevated home in the $2 million bracket presents the most interesting value buy.
Price corrections are still needed for more inventory to move. Buyers generally are displaying a lack of urgency to present offers since they believe time is on their side and prices will continue to adjust downward. This has been the case for some time, but some pockets of the Key Biscayne real estate market are finally hinting at stability and possibly growth.