Key Biscayne Shows Residential Resiliency

By Author: Andres Leiser
Total Articles: 34
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There is one Miami area residential real estate market that has almost competently recovered from the housing bust of 2007, the village of Key Biscayne. After more than six years since the housing crash and foreclosure crisis that followed is quietly emerging as one of the best examples of the resilience of the Miami area residential luxury real estate market. The village of Key Biscayne is a 1.2-square-mile island with an international population of a little less than 13,000 people.

The current median price for a single-family house in Key Biscayne is only off by eight percent from the levels of in 2006 and condo and townhouse prices are only down 16 percent from the last Miami real estate boom. In contrast, median sales prices in Miami-Dade County are still down a whopping 47 percent for single-family houses and 31 percent for condo and townhouse units in the first five months of 2013 when compared to the same time period in 2006.

Key Biscayne luxury residential property owners haven't had all roses and sunshine, the island’s Miami luxury single-family market hit rock bottom when the median resale price slipped ...
... 35 percent to $476 per square foot in 2010. This is down from $736 per square foot in 2006. As of May 31 the median resale price in Key Biscayne has returned to $680 per square foot.

In the condo and townhouse Miami luxury real estate market, the median price in Key Biscayne fell by 38 percent from $603 per square foot in 2006 all the way down to $372 per square foot in 2011. Over the past two years, the median price has increased to nearly $510 per square foot. An important factor in the rebound of the Key Biscayne residential real estate market has been the size of available inventory. With only 160 luxury Miami single-family houses, condos, and townhouses available for resale in a market averaging 29 residential property transactions monthly, Key Biscayne has less than six months of available inventory. A healthy market has about six months of resale inventory available. Inventory levels higher than six months denote a buyer’s market with lower pricing and lower inventory levels point to a seller’s market with higher prices. The Key Biscayne residential real estate market is in a seller's market. In addition to controlled inventory levels, an influx of foreign buyers, mostly from Latin America, have helped to bolster the Miami luxury real estate market. Only South Beach has benefited more from the influx of foreign investors to the area. It is estimated that a huge 46 percent of the population of Key Biscayne was born outside of the United States and 62 percent of the island’s residents have either Hispanic or Latino origin. This is according to the 2010 U.S. Census. The diversity along with the island's location and small-town feel has allowed the municipality to come back much faster than practically any other market in South Florida.

As we move forward, Key Biscayne is poised for higher prices and lower luxury real estate inventory as land that can be developed is limited on the island. There is only one new preconstruction condo project, the two-tower luxury Oceana, is currently proposed for Key Biscayne during a time when nearly 140 towers have been announced for the coastal luxury Miami real estate market.

Author's Bio

Andres Leiser is a local contributor for Constec Realty's Miami luxury real estate website. Andres Leiser has been involved in Miami real estate for over a decade. For more information please visit http://www.constecrealty.com