As much as we love showing you the glossy pictures of condos as well as showcasing our own listings we currently have available, we also strive to educate our readers on what’s happening in our neighborhood. Our next post promises to show some great new listings but today we’re taking a step back from that and present some of our latest findings in Brickell’s real estate market.
There has been a lot of talk from many different sources voicing opinions about the current state of the market as well as making predictions of the future. Every time a new opinion comes in I always go back to the centuries old statement: “Numbers don’t lie”. Like most other consumer driven markets, real estate is carried by supply and demand. Since we’ve now covered rising amounts of inventory in our last few reports I thought that today I’d pick what I believe to be the clearest indicator of activity in any market, anywhere.
|Brickell (zip 33129 33130 33131)|
In terms of Brickell, March’s absorption rates are currently a textbook example of a buyer’s market across most price sectors and a very clear indicator of a certain degree of oversupply in most of developments. With only 3.2% and a 44% decrease in the rate over the last 6 months, units are simply not selling as quickly as before and thus we now are experiencing the 30+ months of inventory we’ve discussed of in the past. Unless certain price corrections to renew interest is done in the next few months we may unfortunately still have very small activity.
If you wish to summarize this report, I would summarize it with the following remarks:
- With more inventory available and less buyer demand, expect your unit to take longer to sell
- Premium units such as the ones with unobstructed water views, open floor plans and more modern building continue to attract the buyers actively looking
- A price correction is likely to be expected later this year as more new units enter the market.
Brickell in my humble opinion continues to be the fastest growing sector of Downtown Miami and I have no doubt that it will continue to grow but we as whole need to see this correction as a way to balance the market out in order to grow accordingly. Last but not least, I remind all of my readers to stick to the numbers and trends rather than the opinions of speculators. Numbers tell it like it is 🙂
Marcelo Steinmander and The Miami Observer of EWM Realty International are local specialists who work on providing the best local information possible. If you would like to buy or sell in Downtown Miami contact us today at 305-305-3885 or send us a message here! We specialize in the Downtown Miami market and our knowledge in the area has already helped dozens of others achieve their real estate goals!