Housing Crash of 2007 Virtually A Memory in Key Biscayne
by Sep Niakan | July 22, 2013
Once the heart of the South Florida housing crash that took place at the dawn of the Great Recession in 2007, Key Biscayne has virtually recovered from the financial shock and stands as a prime specimen of the adaptability and flexibility of the South Florida residential real estate market. Such a remarkable recovery is evidenced by the fact that the median price for a single-family house in the area is only 8 percent less than that measured in 2006, at the height of the housing bubble. Though condo and townhouses are still down 16 percent from the previous real estate boom before the recession pummeled the market.
But the true resilience of the Key Biscayne market is portrayed in the fact that median sales prices in Miami-Dade County are still down nearly 50 percent for single-family houses while condos and townhouses are off by 31 percent of 2006 highs. And while the Key Biscayne market suffered mightily during the crash (the condo and townhouse market the median price drop by 38 percent between 2006 and 2011), that price has risen to within 15 percent of peak performance. The primary driver of the recovery has been the number of residential units in inventory, which is currently thought to contain no more than five months of resale inventory available. A key indicator of a healthy market is six months of available inventory. That Key Biscayne falls under that target indicates a seller’s market with ever rising housing prices.
The recent influx of foreign buyers has also positively impacted the Key Biscayne market who have turned to the area for personal residences after purchasing distressed condos downtown and in other Miami locations. At current count, 46 percent of the island’s population were born outside of the U.S. and 62 percent of residence identify as Hispanic or Latino in origin. That population’s diversity, combined with its location, has fueled the speedy recovery of the island.
In the near term, as the market’s inventory continues to shrink, prices are likely to further increase. Also, the lack of remaining developable land is severely limiting inventory growth. Only one new project is currently planned in Key Biscayne, negligible growth compared to the nearly 140 proposed towers through the rest of the coastal market.
by Sep Niakan | January 22, 2017
Welcome to the month of love! February’s here, and it’s time to get into celebration mode once again. With Valentine’s being the highlight of the month, Miami’s got a mixed bag of events that will help singles and couples...
by Sep Niakan | January 12, 2017
According to thenextmiami, a petition involving a 15 by 75 feet alley has sparked speculations that a brand new hotel could be coming to Edgewater. Why? Simply because this alley comes attached to a 7,875 sq. ft. plot located at 348 Northeast 20...
by Sep Niakan | January 09, 2017
Ever tried driving from Brickell to Downtown Miami for lunch? Most Miamians dread the thought of catching the dreaded drawbridge, which opens every hour or half-hour during non-curfew hours to allow river traffic to pass under. So what’s...
by Sep Niakan | January 08, 2017
Last year’s headlines weren’t too kind to Miami with hurricanes, Zika warnings and falling sales painting a dark picture. However, with the elections finally done with, there are plenty of reasons to be optimistic about 2017: 1. ...