Primary marketCondo Trends: Pocket Market in South Beach Up 41 Percent
Before regional markets begin a turnaround to positive or negative territory, it usually starts in certain price ranges, zip codes or communities. Pricing drives most transition markets – hit the right price, and the sales will pick up. But even in the over-1 million dollar market of South Beach, some communities are considered "bargains" in today"s post-foreclosure world.
Blogger Kevin Tomlinson (www.southbeachrealestateblog.com), points at the South of 5th/SoFi luxury condominium development (which is made up of 10 beach-front luxury condo buildings) as one that zoomed ahead in 2008 over the 2007 market. There have been resales in eight buildings and two new buildings came online in 2008, Continuum North and Apogee South Beach.
"The increase in sales and number of units sold for the same eight South of 5th condos is surprising," Tomlinson writes. "But with the addition of Continuum North and Apogee South Beach, the respective 41.9 percent and 44.3 percent leap in total SoFi real estate activity is a big shock."
The average price in that pocket market has also withstood the surrounding freefall in the last 12 months, according to Southeast Florida Regional MLS data. "It isn"t a surprise that the average price per unit or dollar per square foot went down, but the fact that it decreased 2.3 percent could stun many - even some local agents," he says. "Miami Beach real estate has suffered like every other market, but South Beach"s SoFi neighborhood has weathered the storm handily. I"m unsure, though, about what may be on the horizon as the current supply clearly outweighs the demand."