South Miami Real Estate Report and Forecast
The Rise of luxury real estate in South Miami
In this South Miami Real Estate Report we will discuss the fast growing South Miami real estate market. We have seen South Miami in the last year mature into a major market. The area experienced a boom of luxury new construction homes coming into the area and relocating families choose South Miami over Coral Gables and Coconut Grove. South Miami has been a hub for locals for a long time and is the main town center for some of the most expensive real estate in all of Florida. Areas like Gables Estates, Old Cutler Bay, Ponce Davis all correspond to the small town that is South Miami. Of course the boundaries of these cities/ neighborhoods are obscure, but it’s all the same ecosystem and South Miami is very much the center for this main residential area of Miami.
The South Miami Real Estate Market in Numbers
The South Miami housing market has made some jumps in the last year. Our average days on market have gone from 120 days to only 55 days with homes selling at 95% of asking in first half of 2021 to selling at an average of 99% of asking price in 2022. In the first half of 2021 the highest sale in this market was $4.5M and in the first half of 2022 the highest recorded sale was a whopping $7.5m. A 3 million dollar price jump.
There were 10 sales at 3M or above in 1st half 2021 vs. 12 sales over 3m in the first half of 2022 so a 20% hike in the amount of luxury homes being sold. However the amount of total closed sales went down drastically from 106 closed sales to only 67 sales, down about 40%.
Examples of South Miami Sales
- 6003 SW 80th St closed at $5,150,000 – $781 a foot
- 6048 SW 86th St closed at $5,180,000 – $780 a foot
- 5470 Sunset Dr closed at $7.5M
South Miami New Construction Homes
Let’s compare newer construction homes that have been built in 2016 or later. There were 17 homes sold in the first half of 2021 and they sold for an average price of $3M or $620 a foot. Then in the first half of 2022 there were only 8 homes sold, but they sold for an average of $4.5M or $892 a foot, so much less sales however much higher prices for these newer built homes.
Examples of Sales
- 7225 SW 79 Terrace – Sold at $4.2M or $913 a foot (built 2016)
- 6021 SW 80th St closed at $3,875,000 – $825 a foot
- 6040 SW 80th St closed at $3,926,000 – $836 a foot
In the price per square foot category we also saw significant changes. Averaging all closed sales it went from an average of $465 to an average of $645 however in the “top 25 sales” the average price per foot went from $618 a foot to well over $800 a foot in the first half of 2022, with the maximum price per foot reaching over $1,165 a foot.
Examples of Sales around $1,000 per SF
- 5852 SW 77 Terrace – Sold for $4.2M or $1,165 a foot (HIGH LEVEL HOME Built in 2020) (Buyer of the David Siddons Group
- 7900 SW 54 Ave in High Pines – Sold at $5.1M or $992 a foot (built in 2016)
- 7545 SW 55th Ave in High Pines – sold for $4M or $943 a foot (built in 2019)
What to expect of the South Miami Real Estate Market in the second half of 2022?
In the last month or we have seen the market slow down a bit as we are in the middle of summer. It is normal to see things slow down this time of year however coupled with increases in interest rates and high inflation we have seen homes take a bit longer to go under contract.
Instead of multiple offers within 48 hours like we have become used to seeing, some listings are starting to take a couple weeks or more to go under contract. Furthermore, we are now seeing price decreases on some listings that came to market too high.
Prices reached record prices in the first half of 2022 and this might have been “the peak” of the market before several outside forces have relaxed the state of the market now. Inventory is still very low and prices have not come down, but the rush has subsided a bit and signs of returning to a more normal market is on the horizon. There is however a new benchmark for the South Miami market and we don’t foresee it coming down. Anticipate a healthy, but more normal market for the remaining part of 2022.
