Miami Beach, long a playground for the rich and famous, is now more accessible. If you consider $3 million, as opposed to $6 million, accessible. About 60% of residents are part-time residents from the North or Europe buying with all cash.
The lower prices are affecting everybody. NBA star Shaquille O'Neal recently took a hit on his Star Island home, purchasing the parcel for $18.8 million in 2004 and recently selling it to a Russian buyer for $16 million.
A few years ago, many of the properties on millionaire-row streets like North Bay Road and Palm Avenue were untouchable by many well-to-do buyers. Now those priced at $12 million and $13 million have dropped to $9 million, while those at $6 million are now priced at $3 million.
Ironically, wealthy all-cash buyers may ultimately rescue the deeply depressed local housing market.
In the centrally located Venetian Islands, which are walking distance to South Beach, homes can be bought for between $1 million and $1.5 million, an affordable price considering that most are 10,500 square feet with 65 feet of waterfront.
Isn't it something: These all cash buyers may be partly responsible for improving the housing market in the long run. Hey- whatever works, right?