The Leonard Real Estate Group just shared the news of two homes that just recently closed. These closed sales represent the continued increase in home values in Miami Springs.
1295 Thrush Avenue
First, let’s look at 1295 Thrush Avenue. This home was listed for $699,900. This gorgeous bird section corner lot property featured 4 bedrooms, 2 bathrooms, and updates throughout. The tile flooring, electrical system, plumbing, impact windows, security system, and AC unit were all redone in 2019. The open kitchen was also completely remodeled and features double ovens, granite counter tops, soft close cabinets, and new appliances. The home featured a large 12,570 square foot lot.
The Leonard Real Estate Group reports that the home closed for $710,000 or more than $10,000 over the asking price.
17 Lenape Drive
But that’s not all. The Leonard Real Estate Group also shared the news of the sale of 17 Lenape Drive. This property features 4 bedrooms, 3 bathrooms, and a 1 car garage. The home has a new metal roof and impact windows installed in 2020. The home has two AC units, one of which was also installed in 2020. The tile floors, landscaping, electrical, and other updates were finished in 2019. Walking in you will notice an extra large formal living room perfect for entertaining, and towards the back you have your family room. The kitchen features new appliances, a new bar area, and a large pantry closet. Each bedroom features built in closets, and there are two master bedrooms with their own bathroom. The backyard features a large patio area and has plumbing and electrical set up for a pool, as well as a mature avocado tree providing plenty of shade.
This home was listed for $749,000. However, due to the incredible demand for Miami Springs homes, this home closed for $785,000. That’s $35,000 above the original asking price.
Why are Prices so High?
There are multiple factors leading to the increased in home prices. Let’s address the top economic force: Supply and Demand. Folks, the detached Single Family Home is an endangered species in Miami-Dade County. We’ll get into this more in a moment, but let’s review a couple of things.
Are there more people living in Miami-Dade County today versus ten years ago? In 2012, there were 2.576 million people living in Miami-Dade County. Ten years later, we have have a population of 2.723 million people. That’s an increase of 147,000 people. Where are these people going to live?
Miami Springs has a population of just 14,146 people. We only have 5,245 households in Miami Springs. That’s an average of 2.7 people per household. Remember, about half the households live in apartments or condos. That leaves about 2,500 single family homes in Miami Springs. That’s not a lot of homes in our little community. There are no new lots for single family homes in Miami Springs. In other words, the only choice you have in Miami Springs is an existing house. Yes. You can knock down an existing home and build a new home, but my point is there all the buildable single family lots have been built out.
Hialeah, our oldest neighbor is also pretty much built out. All the new developments in Hialeah are for apartments and / or condos. Doral is also close to being built out and as you can see along 36th Street and 79th Avenue, Doral is growing up with more apartments and condos.
The unincorporated area of West Little River (just East of Hialeah) has not traditionally been considered a great neighborhood. As a result, these homes are priced lower. We are speculating this area may go through gentrification as home prices sky rocket in Miami Springs and even Hialeah, we’ll see more families who are interested in a traditional detached single family home migrate to this area. Only time will tell if we are correct.
Other area with single family homes include Sweetwater, Westchester, and Doral. Again, all these areas are built out. The only way to go is up.
The only pockets of new single family homes that we’ve seen are in Broward County or extreme South Miami-Dade County in Homestead.
Geographically, we are limited to west due to the Everglades. The most expensive property is along the east along the coastline. Miami-Dade County single family homes are an endangered species. Those homes in great locations like Miami Springs will continue to fetch a premium. Traffic is only going to get worse. People are willing to pay more to be close to work and all the amenities Miami-Dade has to offer including the beaches, downtown entertainment, the Gables and more.
We looked at recently closes homes in Hialeah. We found this 3 bedroom, 2 bath home located at 934 West 72nd Street in Hialeah sold for $479,700. In other words, a basic 3 bed 2 bath home is approaching half a million in Hialeah.
In Doral, we found this home located at 113311 NW 61st Street with 4 beds, 2 baths, 2,011 sq ft of living space and a lot size of 7,409 sq ft. It sold in April for $800,000.
In West Little River, we found this 4 bed, 3 bath home on a large 2,838 sq ft home on a quarter acre for $575,000. It’s located at 2020 NW 105th Street.
Quality of Life
I know people sometimes go bonkers with the prices of Miami Springs homes, but as you can see, prices have gone up all around us as well. And let’s be honest, the quality of life in Miami Springs is far superior to Hialeah, Doral, or West Little River. We are a small, quiet, family centric, country club community. We have amenities you just don’t find in these other communities including a fast responding police department, low residential crime, and central location to easily access the best Miami-Dade has to offer.
The more Miami continues to go through a Manhattanization, the more people will pay for a detached single family home within our desirable country club community.
The biggest driving factor in the rise in prices is the supply and demand issue. We have more demand for single family homes than supply. But the overall inflation rate, can’t be ignored. Put simply, today’s dollar buys less than it did two years ago. Real estate is considered a safe place to put down large sums of money as a hedge against inflation. If you own real estate, you’re benefitting from seeing a huge increase within the equity of your home. For renters, it’s incredibly discouraging. Renters are seeing rates going up as much as 50%. Meanwhile, their savings is less capable of buying home as home prices continue to soar.
Will Prices go Down in Miami-Dade County?
History tells us that Miami-Dade real estate saw a collapse after the 2008 financial crisis. There are no signs of that repeating any time soon. We saw a pause and slight drop in Miami-Dade real estate prices after Hurricane Andrew in 1992. By 2002, all those prices had fully recovered. Of course, we can go back to 1926 and the Great Miami Hurricane followed by the Great Depression. Miami didn’t fully rebound until the end of World War II.
Barring a category 5 hurricane, which can happy any year, but using the law of averages we shouldn’t see until about the year 2058, the only thing that may slow down the rising prices will be the rise in interest rates. Which is happening as we speak.
What do you think of the current real estate market? Share your thoughts in the comments section below or via social media.
Real Estate Help
Folks, if you’re interested in buying or selling in Miami Springs, call the #1 real estate team in Miami Springs, the Leonard Real Estate Group at 305.726.8416 or visit www.LeonardRealEstateGroup.com