Pompano Beach just broke its record with a $13.8M sale

Luxury money is hunting value up the coast, and record sales in second markets reframe what Miami waterfront is really worth.

Pompano Beach has a new record. The waterfront home at 2306 Bay Drive sold for $13.8 million, the most expensive single-family sale in the town's history, topping the prior record of $10 million. The 7,760-square-foot house, built in 2004, has 5 bedrooms and 6.5 bathrooms and traded at roughly $1,780 per square foot.

The buyers are Harold and Joan Griffith, Seattle developers who had earlier sold a Fort Lauderdale waterfront mansion for $21.8 million. The seller was an affiliate of Leathem Stearn. The deal was reported by The Real Deal.

“It is quite a great value compared to what some of the sites in Sunny Isles and Miami are going for, and developers are seeing that value.”— Kevin Kreutzfeld, Premier Estate Properties

Luxury money is hunting value up the coast

My read: this is what it looks like when trophy buyers price Miami against its neighbors and go looking for value. As Kreutzfeld put it, Pompano is a bargain next to Sunny Isles and Miami, and developers see it. Record sales in these second markets are not a knock on Miami. They are a read on how expensive Miami has become.

For Miami sellers this cuts in your favor. When $13.8 million sets a record 30 minutes north, it reframes what waterfront is worth here. It also means the very top of the buyer pool is mobile and comparing markets, so pricing has to reflect where your product actually stands against the whole coast, not just your zip code.

• Second markets are heating. Records up the coast reflect how pricey core Miami has become.
• Buyers compare coasts. Trophy buyers are mobile and value-shopping across South Florida.
• Price against the region. Your waterfront competes with Pompano and Fort Lauderdale, not just your street.
• Developers see value. Where builders chase value, resale demand tends to follow.