Gather ’round everyone and let’s chat about everyone’s favorite topic during happy hour cocktails: Brickell and the state of its market. There has been a lot of talking and speculation lately and I wanted to help clear things up a bit by once again just pointing at the data instead. Today, I wanted to shun the rumors and do research at one of the core fundamentals in every exchange of goods and services known worldwide: supply and demand.
Since the beginning of 2016, the amount of inventory available for sale has been vast to say the least. In fact, one look at the graph below shows that we were close to reaching 30 months of inventory in February. Since then, thanks to a rise in the absorption rate and a much needed correction of prices, I’ve started to notice more sales, coming both from local as well as foreign buyers. As of right now, we currently stand somewhere around 22 and 23 months, which is a big change since February. I’m eager to see how the rest of the summer pans out but it will take some time until I can have those figures ready.
Brickell is still very much in a buyer’s market so I wouldn’t do back flips yet. But this is a sign of potential in which we could begin to see a shift towards a more balanced market. One in which there’s a steady supply available to meet the current demand.
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In Conclusion: Brickell’s Months Of Supply
In conclusion, analyzing the real estate market doesn’t have to be like trying to see into a bucket of muddy water. In my opinion, the decrease in supply should be seen as a step in the right direction and proof that a correction was due in some price ranges. Summer will end sooner than rather than later and as such, there will be plenty of opportunities with buyers looking to get their slice of Miami.
Nevertheless, there’s still a long way to go…
As a market, there’ still over 22.9% more supply than last summer. With that figure in mind, the possibility of a market relapse is still present. My advice to sellers at this time is to exercise pragmatism and realism when it comes to pricing your listings. Doing so will allow your condo to gain extra exposure at a time where the market is more competitive.
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Last but not least, I would’t be in this business if I forget to ask for it! Brickell and Downtown Miami real estate continues to be our area of specialty. Please contact us at 305-305-3885 or at email@example.com if you’re interested in buying or selling . Our local knowledge and market expertise in the various developments will help you get the best possible results.
Source: Trendgraphix. Information deemed reliable but not guaranteed.
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