As the coronavirus pandemic continues to linger around the world, many people and industries have been significantly affected. Economies in some parts of the world and even here at home have come to a grinding halt. The real estate industry is no exception. Many in this field have felt the brunt of the economy’s slow down, with many states reporting significant losses, as people stop shopping for homes and seek to protect their assets.

A strange phenomenon has been emerging in the Miami market, however, where there appears to be a surge in the demand for properties, amidst the pandemic. As an agent who moved to Miami during the 2008 crash I decided to investigate the emerging trend by interviewing some of my peers and what I discovered was that Miami properties are indeed selling at an increased rate even though this crisis persists. 

Coming from New York but having a lot of experience with Miami, I was privileged to watch the city grow, especially since following 2008 many homeowners defaulted and left the city empty and full of foreclosures.

19 Palm Ave, Sold by Ivan Chorney of the Ivan and Mike Team at Compass

So let’s take a look at the state of the industry during these COVID-19 times. We’ll begin with Ivan Chorney of The Ivan and Mike Team at Compass. He disclosed that in recent times most people have been looking for homes on the Miami Beach Islands including Palm, Hibiscus, Star, Sunset 1-4, and North Bay Road. It’s no wonder that people are lapping up these homes as Chorney also said that these properties usually feature what most buyers are looking for and that includes: “new construction or recently renovated, modern kitchens and chef kitchens, home offices, home theatre, light and natural finishes that exude calmness and tranquility.” His record highest sale during the pandemic so far has been $20,500,000. 

He did admit however that there have been some challenges trying to sell during the pandemic “The fact that most people have to quarantine after visiting, although there have been a few completely virtual deals but for the most part, people have to be able to come in person to see it, breathe it, and touch it,” he said. Chorney added that most of his customers hail from high tax states like New York, New Jersey, California.

15 Palm Ave, Sold by Julian Johnston of The Corcoran Group

Julian Johnston, of The Corcoran Group, recorded his highest sale so far during the pandemic to former Miss Ukraine and Miss Universe runner up for $19,750,000.  The 7 bedroom 8.5 bathroom is an automated smart home designed by Architectural concepts by Borges & Associates and is located on the gated Palm Island with wide breathtaking bay views and many remarkable features including immediate water views, a custom Italian kitchen with concealing sliding glass, a dedicated theater, office with private entrance, floor-to-ceiling rear sliding glass doors, 110 feet of waterfront with large dock, an infinity-edge pool, spa, and more!

“Buyers are currently interested in upscale new construction, modern style homes on the water with wide open bay views. We have also had recent buyers favor transitional style homes that have traditional exteriors, but modern interiors.” He also concurred that Waterfront Estates in the Miami Beach Islands such as Star, Venetians, Palm, Hibiscus, Sunsets, and Allison were seeing an upsurge in purchases.

Like many other agents, Julian said that condos really took a hit. “Amenities have been shut down and showings were impossible during the height of the pandemic. More people are now working from home. They also want a yard and pool for the kids to have access to. So we have had many requests from people living in condos that want to move to a single-family home.”

Most of his buyers are coming from New York. Interestingly, he is also seeing some notable people from Silicon Valley in California, which can be due to CA legislators’ recent proposal to increase the state tax from 13.3% to 16.8% and add a wealth tax of 0.4%.

4528 Prairie Ave, Miami Beach, Sold by Reid Heidenry of One Sotheby’s International Realty

New Yorkers seem to be leading the migration to Miami, Reid Heidenry of One Sotheby’s International Realty also said that most of his clients were from New York. 

Reid’s highest sale so far during the pandemic was $6,700,000. What was surprising to him was the fact that the property had been on the market since February 2017 and was first listed at $8.5 million. “It was listed at $7.5 million when I showed it to my buyer. I represented the buyer, not the seller, we sold it for $6.7” he said. His hottest properties have also been in the Miami Beach area.

Why are single-family homes selling better during the pandemic? “because of COVID most buyers are looking for privacy and space. Condos have gone out of trend because people don’t want to share amenities such as pools and gyms. Having your own outdoor space and not having to share elevators with strangers has been a very desirable demand for most buyers.”

Financing is increasing demand for homes but is taking longer to process “With interest rates at a record low, there is a massive increase in mortgage applications. This is great for the real estate industry but it has made financing more difficult since many banks are backed up with loan applications.”

The pandemic has caused some unique challenges for the real estate industry according to Reid “The other factor that is new during the pandemic is a lot of city offices that we need to help us close out open permits and liens are physically closed so there have been delays there as well.”

1402 North, Sunny Isles Beach FL 33160 sold by Bento Queiroz of Compass

Bento Queiroz, of Compass, has seen an increase in demand for Star Island and other Miami Beach properties with many buyers coming from New York and Chicago, people are looking for “waterfront ultra-luxury homes with resort-style amenities” although the travel bans posed by the pandemic has been preventing customers from viewing potential properties, despite these challenges he still sold a 5 bedroom, 6.5 bathroom in Estates at Acqualina 1402 North, Sunny Isles Beach for $6,345,000, his highest sale during the pandemic so far.

10010 W Broadview Drive, Bay Harbor Sold by Batsheva Rivkin, Agent at Compass

Another Compass agent, Batsheva Rivkin, echoed similar sentiments about sales. Her highest sale during the pandemic so far was $4,100,000. The listing was a 4 bedroom 4.5 bathroom located in Bay Harbor Islands. She says Bay Harbor and other family-friendly neighborhoods are experiencing a huge demand- specifically from New York buyers. “Buyers are looking for space above all else but I’m also seeing, more than ever,  the demand for waterfront properties. My clients want quintessential Miami lifestyle and that’s synonymous with waterfront living.”

Luis Dominguez of Douglas Elliman sees the positive amid the crisis, while it’s been more difficult to show properties he says “the lockdown showed us all how important HOME really is, there is a newfound appreciation for enjoying life from home” he is sees Palm and Hibiscus island having a moment right now with a few recent sales that closed in the $20 million range, there are more homes under construction and coming soon, this market will continue to grow in the years to come.

Entertainment and yard space are huge selling points right now, buyers are looking for space to enjoy, Luis closed on a home he had listed for $7,500,000 and sold it during the pandemic completely over Facetime, it was a 5 bedroom, 7 bathroom waterfront mansion located Bay Drive in Miami Beach.

It’s great to see the Miami market going strong, what was once a vacation destination for people with 2nd homes is becoming a year-round world-class city.