Home Prices in Miami Foreclosure Listings Holding Up

by Simon Lindsay on cities

The mention of Florida and Miami oftentimes conjures images of bank foreclosure list and vacant condos, but there is a part of Miami-Dade County where home and condo prices are still holding up – Miami Beach.

Especially in the South Beach area, home prices have not declined as sharply as in the other parts of Florida. Smaller condos in high-rise buildings with ocean views and beach access are still priced between $500,000 to $1 million and luxury condos in higher-end buildings are still priced between $1 million to $5 million.

An Esslinger Wooten Maxwell real estate agent, Allison Cotter, said she receives numerous calls for Miami Beach condos priced at $58,000, and she tells them bargain prices no longer exist in Miami.

The Florida Association of Realtors reported that the median price in March for existing condos in the Miami area, including condos in foreclosure listings, was $151,000.

Jill Hertzberg, a broker for the high-end real estate brokerage Coldwell Banker, said there are luxurious condos still being marketed for several months now even if their prices have been reduced, such as the condo of former Mets player Mike Piazza. But she said she is starting to complete condo deals now, such as a high-rise condo, which was purchased at a contract price of $810,000 after its listing price was cut down from $1.2 million to $949,000.

She said the selling price was well below the market price, but the seller decided he had to sell the property.

Real estate agents in Miami Beach said foreclosure listings have not drastically pushed down prices in the area, especially in the South Beach area, because many new condos in the area were sold before the housing crisis started to creep 3 years ago.

But South Beach prices have not been completely immune to the effects of overloaded foreclosure listings and short sales occurring across Florida. A town house with an ocean view, priced in 2006 at $3.2 million, is now being sold at a short sale price of $1.7 million. A high-rise condo listed in a bank’s foreclosure listings is being sold at $599,000, a steep drop from its purchase price of $1.35 million 3 years ago.

Tom Bellantoni, a Connecticut antiques dealer, said he has been going to Miami Beach to look for properties included in foreclosure listings, but he has not found one in his range of $600,000. Recently, he has found a house in Miami offered in a short sale, which is being offered at $499,000.