The information resource for Luxury Oceanfront Condominiums and Homes in Miami, Sunny Isles, Bal Harbour, Fort Lauderdale, Boca Raton and Palm Beach. (954) 632 3266

I have several clients, oceanfront condo buyers and sellers,  coming into town this week for the Fort Lauderdale International Boat Show which runs October 29, to November 2nd.  The show will feature more than 3 billion dollars worth of boats, yachts, super yachts, electronics, engines and thousands of boating accessories from every major marine manufacturer and boat builder worldwide. The Boat Show encompasses more than 3 million square feet of space, both on land and in water.  This is the world’s largest boat show and attracts people from all over the world. 

Other great reasons to be in South Florida…..

Our South Florida climate is ideal for convertibles.   

 …and those that come to South Florida enjoy great dining. South Florida speciality…stone crabs.

and of course great oceanfront condos in Miami, Fort Lauderdale and Palm Beach

The oceanfront condo activity since August is quite incredible.  In every luxury oceanfront condo building, there have been buying opportunities and there are buyers buying.  Followers of blogsouthflorida know that when I reference buying opportunities, I am in most cases referring to “motivated sellers”, not short sales or bank owned properties.

There has been a significant increase in sales.   The opportunities we have identified and monitor are truly quite incredible.  Units that are direct oceanfront units and are considered the most desirable and sought after are selling and inventories are declining. Building after building these unique opportunities are being sold and those truly incredible deals are going fast.

In Miami, Fort Lauderdale and Palm Beach In the past 60 days there have been 89 closed oceanfront condo sales with the specification of at least 2 bedrooms priced over $800,000.

At One Bal Harbour, there was only one unit listed in one of the most desirable lines.  It sold and closed

Canyon Ranch, Miami Beach,  one of my direct oceanfront 2 bedroom listings had multiple bids on it!!!

At the Palms , in Fort Lauderdale, there were about 6 units listed under $1 million.  They have pretty much all sold.

The South Florida Oceanfront condo market is very unique.

The market today is not a “typical” market where the standard procedures of negotiating applies to every scenario.  Many buyers come into the market expecting to follow the procedures of buyer submitting and offer, seller countering offer,  terms negotiated back and forth.   The scenarios that exist today that I experience firsthand through the numerous offers I present on behalf of my clients run the gamut.  In certain situations, offer-counter-offer, playing it along,  is the way to go.  In other situations….it is what it is.

I want to address properties being sold by owners not in distress.  There are properties listed today, by very motivated sellers.  In some cases, they have priced their property at the rock bottom price that they are willing to sell it at.  No negotiating.  This is a marketing technique.   I have come across this situation several times, from both sides of the fence, representing both a buyer as well as for a seller in which I represent.

One of my listings at Canyon Ranch, unit 301, is priced very aggressively the seller is not negotiating, and that is clearly explained.    I have received offers below the asking price, and I certainly understand why a buyer would try.  However, the issue that I  have come across is that buyers are getting “insulted” that they have not received a counter offer back below the asking price.    The owner has set their bottom price and it is what it is. It is not a distress sale.  There is no negotiating at all …..  The process is not the issue.  The property is the issue. Each property has to be evaluated.   Recently, I was working with a buyer that came in with a very low offer.  The seller responded back with their bottom selling price.  The buyer was insulted.  The process is not the issue the property is the issue.  Evaluating value.

Sales are up in South Florida and there are many many buyers out there scooping up  unique buying opportunities.  Statistics prove it.   We are going into our season and this is going to continue and increase. Building after building that I investigate for my clients are reflecting growing lists of units that have gone to contract and are “pending sales”. Especially, in luxury buildings, the lower priced units are selling.  In Miami Beach, Bal Harbour and Sunny Isles,  there are over 311 oceanfront condos that have gone to contract and are pending closings.  37 of those are priced at over $1 million.  In November 2008 there were only 58 pending oceanfront condos.  In Broward county, which includes Hallendale, Hollywood, and Fort Lauderdale, there are 250 oceanfront condos that have gone to contract and are pending closing.

There are great opportunities in the market, however, whether it is a pre-foreclosure, bank owned,  or motivated seller, expect the unexpected !

Luxury Oceanfront Condos along the coast in South Florida vary immensly.  Each building has its own character as does each neighborhood and each city, and those variances are reflected in the price.   Worldwide attention is focused on oceanfront condos in South Florida as the price swings have been reported around the world.   To summerize our market we like to provide our readership with statistics and data.

I have selected 7 very different luxury oceanfront condos along the coast to take a look at. These 7 condominiums are all relatively new and represent a cross section of oceanfront condos along the coast.   Continuum in South Beach, Canyon Ranch in Miami Beach, One Bal Harbour in Bal Harbour, Turnberry Ocean Colony in Sunny Isles, Ocean Palms in Hollywood, The Palms in Fort Lauderdale, and The Excelsior in Boca Raton.

The information provided addresses, number of closed sales, $ per square foot, average $ of asking price, number of units currently under contract (pending), and total number of units for sale in each building.

In continuation of the previous post Oceanfront Condo Deals-Bank Owned, Short Sale or Motivated Seller,  we wanted to provide additional data on the South Florida Oceanfront Condo market including, Miami, Fort Lauderdale, Palm Beach and all the localities along the coast. The data below details the breakdown of closed sales for the past 6 months.  

Although, there are short sales and bank owned properties closing, clearly the majority of transactions are not distressed properties.  Furthermore, buyers today are all looking for great opportunities.  It is safe to conclude that the non-distressed sales were offered by motivated sellers in tune with the current market conditions.  The buying opportunties out there certainly fall into all three categories and are not limited to just distressed-properties.

The economic situation and the housing market has brought the spotlight on to SHORT SALE AND BANK OWNED  properties as I have written in a previous post.  There are oceanfront condo opportunties in Miami, Fort Lauderdale, Boca Raton, Pam Beach, Sunny Isles, Bal Harbour…every where.   As many buyers have come to learn, the short sales process can often be a shot in the dark.  The offers are submitted to the bank and the banks response time is an unknown.  But…. short sales are getting closed.  

Some of the Bank Owned units coming on the market are priced well below market value, creating an auction type response.  Buyer’s submit their best and highest offers.  The banks look at all the offers that come in within a certain period of time and select the best offer with the best terms.   Those selected offers are most often cash purchases with a quick close and can be well above the listed asking price.  Timing is key because once these properties hit the market, the offers come in within hours and are submitted to the bank very quickly.  The last offer we submitted for a buyer had to be within 48 hours of when the property became listed for sale.  Our buyers offer was above the asking price but not high enough.

And then there are MOTIVATED SELLER.    We have had great success in finding motivated sellers for our buyers.  Finding these great opportunities are very building specific and unit specific  but they are out there.  These buying opportunities are very straight forward and can be sold and closed very quickly.  

The Beach Club in Hallandale is an oceanfront condo with 1200 units and in great demand. For illustration purposes let’s look at the data for The Beach Club for the past 6 months. 

As you can see, there have been a total of 56 closed sales.  Of the all the closed sales,  more than half have been sold directly by the owners not in any distressed situation forcing a short sale or foreclosure.   I think it would be safe to say that successful seller’s of oceanfront condos in South Florida are well aware of market conditions and are aggressively pricing their units to sell.  

Sales at the Beach Club not long ago were averaging $500 per square foot and up.  The lowest priced closed sale was a bank owned unit at $241 sq.ft. 

Short Sales, Bank Owned and Motivated sellers present buying opportunities.

There are numerous luxury oceanfront condos along the coast in South Florida ; in Miami Beach, Fort Lauderdale Boca Raton and Palm Beach.  Each building has its own personality, style and vintage.  The great majority of the luxury oceanfront condos rise 20, 30 or 40 stories high, with over 200 units per building.  

There is an option for those that prefer a smaller number of residences in a building.  These are known as “Boutique Buildings”  Some of the “boutique buildings” also are low rise buildings as well rising no higher than 12 floors.

In Hollywood, there is the newly built Villas of Positano. Built by Architect-Derek Vander Ploeg, known for projects such as Mizner Park and the spectacular Excelsior in Boca Raton.  The interiors were completed by the Perla Lichi Design group, known for exceptional high-end residential design.  

The Villas of Positano is situated between the ocean and the Intracoastal Waterway in Hollywood. The building consists of only 62 residences and is only 11 stories high.  Prices at the Villas of Positano start at $1,050,000 for 2771 square feet and go up to $2.6 million for a four bedroom villa.

Everyone today is looking for a great deal.  Here is an opportunity….. a magnificently unit finished by Steven G, renowned residential and commercial designer.  Over 3400 square feet 3 bedrooms 3 and one half baths. Asking $344 per square foot including all furnishings….. $1.2 million.  This is a west facing unit with limited ocean views.  Large living space, in a first class unique building, move in ready …turnkey…everything included !

Entry Foyer

Grand Living Area

Kitchen-

Dining Room- Can be converted into a 4th bedroom

Master Bedroom

Other buildings in South Florida similar to the Villas of Positano’s Mediterranean style are the Bellaria in Palm Beach and the newly build Luxuria in Boca Raton.

Another “Boutique Building” with a modern South Beach feel is Coconut Grove in Fort Lauderdale.  This building has Smart Building Technology and is situated right next door to the Marriott Harbor Beach Club.   I have recently written a post on their price reductions. 

There is an oceanfront unit at Coconut Grove on the second floor in the best line in the building. (happens to be my listing).  Unobstructed ocean views.  The unit feels like you are living at a  beach house on the sand.  You can hear, smell and see the ocean.  2 bedrooms 2 and one half baths with a separate laundry room.  2001 square feet asking price $1,299,000.

View from Unit 202 Coconut Grove-  MLS Number F1002876

We haven’t posted in a while, because we have been very busy with buyers looking for great opportunites as well as with institutional buyers looking for bulk sales. There is plenty of activity in the market.   Active buyers in luxury oceanfront buildings are picking the best line units in buildings, taking advantage of the “buyers market” that exists. 

To provide you with an idea of the sales activity of oceanfront condos, here is a sampling of  closed sales for the past 6 months in South Florida. 

• One Bal Harbour. Bal Harbour- 6 closed sales all over $1.3 million-NOTE:  Unit 208 Originally listed at $3.1 million closed for $2.2 million, one of the most desirable units

• Turnberry Ocean Colony, Sunny Isles - 4 closed sales from $1.1 million and up

• Continuum, South Beach- 6 closed sales all over $1.1 million

• Beach Club Hallandale Tower One- 13 closed sales- 5 direct ocean units starting at $550,000.

Bank owned, also known as REO’s,  and short sales exist along the coast in South Florida.  For an oceanfront condo buyer these are worth taking a look at but may or may not be the right choice.  Following is statistical data on short sales and bank owned properties in South Florida, including; Miami Beach, Bal Harbour, Sunny Isles, Hallandale, Hollywood, Fort Lauderdale, Boca Raton and Palm Beach.

If you can’t read the chart very well, email me and I will send you back a clearer version. 

Currently, there are 654 oceanfront condos in short sale.  However, in the past 6 months there have only been 101 closed short sale transactions.  Entering into a short sale transaction can be a long process with unsuccesful results.  The process seems to be improving lately, as all parties involved become more experienced with this type of transaction.  Furthermore, with the new stimulus package, perhaps the banks will be more willing to move these properties along. 

The majority of the short sales on the market today are priced under $300,000, 358 condos.  However the actual closed sales in that price range is relatively sparce with a mere 33 closed transactions reported in the past 6 months.   If we compare  closed sales in each price category compared to the number of active listings, the highest ratio of closed sales would be in the over $1million price range.

Oceanfront bank owned properties are another story.  There have not been that many.  You can see that as they come on the market they are selling.   As in the short sale scenario, the inventory of the higher priced condos that are bank owned have sold.  When bank owned properties come on the market they are often priced well below market value.  If they do not price them low enough, I have found that soon after they reduce the price significantly to a level where the offers start coming in.  In that scenerio, there usually are multiple offers submitted.   At that stage, the bank comes back to each buyer and requests best and highest offer.

We will be carefully watching to see if the stimulus plan will change the dynamics of the short sale bank owned oceanfront condo market.

Data has been extracted from the South Florida MLS.  All effort has been made to provide accuracy but is not guaranteed.

Ron Shuffield CEO of Esslinger, Wooten, Maxwell, Inc. (EWM)  discusses how the credit market is impacting the current real estate market.  Potential buyers have been on the sidelines and as banks begin to free up lending, coupled with prices lower than it would cost to build, an increase in buying activity is expected.

South Florida Real Estate Market Forecast 2009

Ron Shuffield goes on to say, “As we enter 2009, it’s important to note that while the changes to our residential real estate market during 2008 were unprecedented, the opportunities that are evolving today are equally compelling.  When all is said and done, it’s hard to imagine that we will ever see again a buyer’s market similar to what we will experience in the year ahead.   Opportunities abound to purchase all types of housing at prices that we didn’t dream possible two years ago.  But, we will still have to dig out the real values.  33% of the total Miami-Dade and Broward MLS inventories are now listed as short sales and another 10% are listed as REO properties.  That means that we are at a point where our buyers  are now finding exceptional values in almost 50% of our listing inventory.  While 2008 was the year of ”analysis”, 2009 will be the year of a sharp increase in the number of homes sold.  Our industry sold 43% more single-family homes and condos in the 4th quarter of 2008 than we did in the same period in 2007; and, we believe that we will continue to see many more sales in 2009 than we experienced in 2008.  Our buyers are recognizing the values that we are now offering. 

And while yes, there are pockets where heavy foreclosure and short sale activity will continue to impact values, we are beginning to see a “bottom” to the market in our most desirable buildings and neighborhoods.  The rebound will be very building specific and neighborhood specific.  Communities such as Weston, in Broward County,  are already seeing sales activity at levels of three years ago. 

Yes, as I discuss in the video above, credit standards are more stringent, which they needed to be, but there is ample financing available for qualified buyers at unheard of rates lower than most of us have seen in our lifetimes”