Notorious as being one the worst-hit markets in the country and in the state with the highest number of foreclosures, the market for real estate in Miami Beach is continuing to show signs of struggles into late 2009. With some of the highest increases of real estate prices before the crash, the Miami area has now seen an adjustment in prices.
According to the Miami Herald, in October, the median price for single-family homes in the county was down 28% from the year before, now at $178,500. The median price for condos in the area was down 30% to $138,400. However, taking prices only from 2009 into consideration, the homes have made up approximately $30,000 in values, suggesting perhaps the market has seen its worst days.
Homes for sale in Miami Beach making their way off the market actually saw an increase in activity, however, as many were spurred on by the government's plan to offer up to $8,000 in tax rebates to qualified first-time home buyers. Sales of existing single-family homes in the county were up by 26% compared with a year ago, though month-to-month, sales in October fell by 8% compared with September's sales.
The largest increase in activity in Miami Beach real estate for sale, however, has been in the lower-priced section. Homes for $300,000 and more are having a harder time moving off the market as large loans have become exceedingly difficult to obtain. Currently, the area has just a four-month supply of homes under $100,000 but an eight-month supply of homes under $300,000. Additionally, the $300,000 to $1 million range is stuck with a 21-month supply, while the $1 million-plus market has built up a four-year inventory.