Despite the COVID pandemic, property values continue to gain throughout South Florida.
The preliminary estimates of taxable property values in Miami-Dade grew 3.6% at the end of 2020, from $324.362 billion to $335.912 billion. Without counting new construction, values rose 1.9% to $330.647 billion.
In Broward, values rose even faster, from $211.264 billion in 2019 to $221.881 billion in 2020 — a growth of 5.8%. Without new construction, values grew to 4.7%. or $218 billion.
The reports cover taxable values, estimates that typically come in lower than market values because state law caps the amount of growth allowed on a tax bill for a primary residence.
The annual June 1 report from property appraisers across Florida is closely watched every year, because it offers both a comprehensive look at real estate values and lays out how much property tax local governments can expect if tax rates stay the same. The 2021 report took on more importance because it’s the first since the COVID-19 pandemic upended the economy and daily life for the three-quarters of the year.
Overall, the local estimates for property values as of Jan. 1 showed a more bullish look at the real estate market than was expected when the pandemic crisis began in March 2020. In July, Miami-Dade released budget forecasts expecting property values to gain just 2% this year countywide.
Commercial property takes a hit
But there were also signs of COVID’s damage, including the emptying of retail centers and idling of office buildings. Several of Miami-Dade’s commercial centers — including downtown Miami and Aventura — had some of the weakest years in the country in terms of real estate values.
Areas with little or no commercial real estate enjoyed the benefits of a residential market that kept humming during the pandemic, boosted by people moving in from other areas to a market where outdoor dining lasts year-round and there’s no state income tax. Extending trends from prior years, many of the more affordable housing markets in Miami-Dade saw high demand boost prices as well.
Virginia Gardens (with an increase of 13.5%), Biscayne Park (7.5%) and Indian Creek (6.59%) were the three municipalities in Miami-Dade with the highest property value gains, not including new construction. Virginia Gardens (a gain of 13.6%) also clocked in first place when ranked including new construction. West Miami (10.09%) and Florida City (9.76%) were the other two top gainers..
All of the cities where preliminary taxable values dipped, including new construction, are known for luxury condos and high-end living: Aventura (-1.5%), Bal Harbour (-0.6%), Bay Harbor Islands (-0.5%), Miami Beach (-0.2%) and downtown Miami (-0.1%).
Miami-Dade County Property Appraiser Pedro J. Garcia attributes the dips in the costly neighborhoods to construction projects that had to be halted due to the COVID pandemic and a sluggish condo market where sellers are dropping 5% to 15% of their asking price in order to sell their units.
“With single-family homes, people are paying the asking price,” Garcia said.
Affordable markets such as Hialeah, Homestead and Opa-locka showed sizable increases in property values, while pricier neighborhoods such as Key Biscayne had near-flat growth.
According to the Miami Realtors Association, the median sales price for homes in Miami-Dade hit a record high of $515,000 in April. The median sales price for condos was $325,000.
What’s happening in Broward?
In Broward, property values including new construction spiked highest for Lauderdale Lakes (11.45%). Lazy Lake (a small community of 20 homes near Wilton Manors) had the second-highest growth — 10.6% — but Broward County Property Appraiser Marty Kiar said that figure is misleading.
“Lazy Lake is the smallest city in Broward County,” Kiar said. “They only sold one home last year so it inflates the percentage.”
Other big gainers in Broward including new construction were West Park (9.48%), Lauderhill (8.41%), North Lauderdale (7.1%), Tamarac (6.4%) and Wilton Manors (5.7%).
For the second year in a row, all of Broward’s 31 cities saw an increase in property values. The median sales price of a single-family home in Broward was $464,000 in April 2021. The median sales price of a condo was $220,000.
While the reported values are supposed to represent conditions as of January 1, the big deadlines come in the summer. The first round of estimates come June 1, followed by the final roll values on July 1. Those are used by local governments to determine roll-back tax rates — what the property-tax rate would be to generate the same amount of revenue as the prior year — and to plug in revenue totals for the upcoming 2022 budgets.
While residential real estate remained a buyer’s market through COVID, the commercial side of the property market was a different story.
The June 1 values showed only a few dips in Miami-Dade. Garcia’s press release announcing the results noted a “continued decline in condominium values.” The weakest areas for real estate values included some of the most popular high-rise markets, as well as retail centers.
The Miami Downtown Development Authority taxing district saw existing values drop 1.5%, and existing values in Aventura — home to the county’s largest mall — dropped 1.6%.
“Also a lot of commercial properties in these neighborhoods remain vacant and awaiting new tenants,” he said. “Since Nordstrom closed at Dadeland, that space has remained empty because it’s so big.”
This story was originally published June 02, 2021 6:00 AM.
_pp%20Cropped.jpg)