The Miami real estate market suffered one of the largest price collapses in the country during the crash of the late 2000s. Condominiums, which developers vastly overbuilt in South Florida during the boom years, led the fall, with many priced at over $300,000 in 2006 ultimately selling at auction for under $100,000, and others, still unable to attract buyers even at bargain prices, undergoing conversions to rental apartments. Real estate in Miami bottomed out in 2011 but has steadily recovered in the five years since. Seasonal fluctuations have been minimal. The city is certainly a study in extremes. In its trendiest enclaves, buyers face difficulty in finding homes priced at under $1 million. However, wretched poverty and blight characterize many areas of the city, and in these neighborhoods, prices have barely budged from their 2011 nadir.

Market Insights

In May 2011, the median sales price in Miami stood at $133,350. As of April 2016, it had recovered to $242,000. From 2015 to 2016, three-bedroom homes had seen the greatest appreciation in value, rising 11.9% from $232,250 to $260,000. Two-bedroom homes are a distant second at 6.1% appreciation, followed by four-bedroom homes at 4.6%. One-bedroom homes, a category largely populated with condominiums, actually declined in value by 14.8%, indicating that the Miami condominium market is still struggling to pull itself from the late-2000s malaise.

The housing recovery has been highly uneven in Miami. Certain ZIP codes in trendy and affluent areas, such as 33133 in Coconut Grove, have seen their home values more than double between 2011 and 2016. Other areas, such as Miami Gardens and Opa-locka, remain mired in a struggling market and feature average sales prices below $100,000.

Property and Transfer Taxes

Miami-Dade County features the fourth-highest effective property tax rates in Florida, at 1.27% of appraised value. The exact property tax rate that a Miami resident pays depends on where in the city he or she resides. As a general rule, the more rural areas in the western reaches of the county pay lower property tax rates, while the denser areas near the coast come with higher rates.

A unique benefit offered to all Florida residents is the homestead exemption. Homeowners who occupy their homes as a primary residence receive a $25,000 reduction in their home's tax-assessed value. In addition, property tax increases on homestead properties are capped each year at 3% or the rate of inflation, depending on whichever is lower.

Most Expensive Neighborhoods

Miami features no shortage of exclusive neighborhoods carrying price tags prohibitive for all but the extremely wealthy. Perhaps the most elite of these is Fisher Island, which sits just south of South Beach and requires a ferry ride to access. As of April 2016, the average Fisher Island home sold for well over $2 million.

The Brickell neighborhood is located directly south of downtown in the middle of a trendy entertainment district. Although it features mostly apartments, condominiums and lofts, Brickell sales prices still manage to average near $500,000, with most residents paying exorbitant homeowners' association (HOA) fees on top of that.

Top Real Estate Websites

Miami home shoppers have access to a plethora of online resources to assist with their search. Run by a local team of real estate agents, MiamiRealEstate.com is a comprehensive website that focuses on high-end neighborhoods in the metro area, including Fisher Island, South Beach, Brickell, Coconut Grove and Coral Gables. MiamiHerald.com, the website for the city's largest newspaper, also features an expansive real estate section that includes an easy-to-use real estate search tool. Shoppers can pull up homes for sale all over Miami, and then sort by property type, ZIP code, price or number of bedrooms and bathrooms.

Nashville Real Estate Market

Related Articles
  1. Personal Finance

    Traveling to Miami on a Budget

    Learn how to have the time of your life in Miami, one of the favorite playgrounds of the wealthy, even if you are not wealthy yourself.
  2. Investing

    The Biggest Real Estate Mistakes To Avoid This Year

    The real estate market has changed dramatically in the last few years - don't get caught in the cold.
  3. Managing Wealth

    The 5 Factors Of A 'Good' Location

    “Location, location, location” is a common mantra in real estate. And it’s good advice.
  4. Managing Wealth

    The Most Expensive Neighborhoods in Manhattan

    Understand why Manhattan has some of the priciest residential real estate in the world. Learn about the top four most expensive neighborhoods in Manhattan.
  5. Personal Finance

    The Downside Of Cheap Vacation Properties

    Find out about the adverse trade-offs that come with getting a bargain on a vacation home.
  6. Investing

    Don't Let Foreclosed Homes Ruin Your Neighborhood

    Empty homes in your neighborhood aren't just eyesores - they can affect the value of your property.
  7. Investing

    The Hottest U.S. Commercial Real Estate Markets

    As commercial real estate becomes increasingly pricey in top markets like New York, investors are turning to more mid-sized cities like Miami and Dallas
  8. Investing

    Top 4 things that determine a home's value

    Your house depreciates over time, while the land beneath it is likely to do the opposite. Here are the top determinants of your home's value.
  9. Investing

    6 Signs Of A Healthy Real Estate Market

    When these indicators align, it is a good bet that a real estate recovery is on the way.
Trading Center