Earlier this week I had a conversation with a fellow Realtor. He was lamenting the decreasing home values on Key Biscayne. I replied that Key Biscayne was fortunate that their depreciation has not been as severe as Miami-Dade County in general. He argued that sales prices had indeed dropped at a similar rate as the rest of the county.
So back at my office, I pulled up the data from our local Multiple Listing Service using Trendgraphix. The graphs show the “per square foot” prices for the selected areas over the past five years, and the percentage change in that time period.
First I looked at Miami-Dade County overall:
And then I selected zip code 33149 for the island of Key Biscayne:
Note that the average depreciation for Miami-Dade County over the last 5 years has been 43.7%. In contrast, Key Biscayne has depreciated by only 13.3% in that same time period.
I don’t like to contradict my fellow Realtors, but this is why I was rather surprised by the other agent’s comments. Yes, Key Biscayne certainly has depreciated. Property values in most of the nation have. But I think the islanders can take comfort in the fact that they are doing substantially better in holding on to the value of their homes than homeowners in the rest of Miami-Dade County.
I did notice, though, that Key Biscayne still has a lot of unsold inventory. It is averaging about 22 months this year; somewhat higher than the county average of 11 months. Typically we consider six month’s of available inventory to be a “stable” market. As such, Key Biscayne (and Miami-Dade County in general) will likely see additional price adjustments before we achieve stability again.
If you would like to receive a similar report for your zip code or folio area, please call me at 305-801-3133 or email me at Melanie.Wood@FloridaMoves.com.