OCTOBER 18 - OCTOBER 24 2021
This weekend my team and I did a major data breakdown on all aspects of the Miami Real Estate market. With the talk of a real estate bubble and pricing reaching ATHs, let’s take a more in-depth look.
Looking at the graph below, you can see that in the last 10 years waterfront property sold for an average price of $750 per foot. In the first half of 2021, the price per foot sold product was an average of $3,500! This is a 129% increase or 12.9% APY.
Taking in the economic factors of the current state of the world, this price increase is due to supply and demand, quality of life, taxes, etc. I believe this is translating into luxury goods such as real estate. There are two major players affecting home buyers’ decisions, the value of a dollar and desirability. This is in my opinion, the driving factor of the all-time high pricing for sold waterfront homes in Miami Beach and South Florida.
I am not an economics professor, but I do regularly transact in the real estate market. My points above are purely based on my experience with the real estate market in its current climate.
Homebuilders are estimating that waterfront premier construction costs will be anywhere from $750-$1,250 per foot. At this current date, 10/26/2021 there are less than 10 available lots to build on, all others are tear downs.
Where do you think the market will go in the next 12 months? 6 Months? 18? 24?