For the vast majority of my publications, I’ve tried to focus on providing a huge amount of very specific information. One perfect example is my last post on One Miami, where I covered a certain building. Some call this approach narrow but I enjoy keeping it that way. Nevertheless, on today’s post, I decided to cover a lot more ground, adding most Downtown Miami condos and its areas.
I recently pulled up the current trends thanks to the help of our research tools. Overall, I believe this post will help provide a bigger picture on overall sales. The data below includes buildings located all the way south in Brickell and as far north as Edgewater near I-195. Everything else in between is also included. As always, let us know if you have any questions 🙂
Current Overall Trends: Downtown Miami Condos
For Sale vs. Sold
As of the end of August, Downtown’s condo market continues to be dictated by buyers. Compared to where we were last year, the amount of closed and pending sales have declined by -22.6% and -20.3% respectively. While the decline in sales has been attributed to multiple sources rather than just one, the numbers as pictured in the graph can clearly show that the rise of available inventory for sale has risen whereas the amount of sales has remained very close to the levels seen in 2015. Downtown Miami currently has approximately 19.1% more condos for sale than during the same time last year.
In summary, the amount of activity continues to be fairly close to the levels seen last year, only this time, buyers now have more inventory to choose from. The buyer’s market will continue until there’s more stability and overall balance in activity.
Months Of Inventory
Let’s talk about everyone’s favorite subject!
As of right now, there are approximately 26 months of inventory across all price points. As a number, it’s currently over 50% more than last year, a fairly significant difference. With that said, let me remind everyone that this figure is based upon all condos for sale in the zip codes above, in every price category. If I were to look at only properties priced below $350,000, the months of inventory would be closer to 15 months rather than 26.
I added a graph of only properties up to $350,000 during the same time period just to help:
The graphs themselves show the data from an easier perspective to understand. Based on what I interpret from them, I see a luxury market sector that is extremely competitive, where every available listing is feverishly competing among the other for a more limited pool of buyers. Nevertheless, it also paints a different picture for the mid tier price ranges. The level of inventory among those listings don’t show the same level of saturation among pricier units. I would also say that it’s not so far off from what I would consider to be a balanced market for a condo area such as Miami’s. 10 months of inventory, similar to the levels we saw in March of this year, isn’t that far away from reality.
This is a very touchy subject that actually happens to be easy to understand. Next time you ask to see the months of inventory on any city, please remember that it will depend on the price range and even the building. Some clients are actually surprised when they find out that certain units are actually hard to find at the moment.
Are prices being negotiable at this time? The graph above should easily answer that question. Prices have continued to decline as more listings continue to adjust based on more recent comparables. The fact that the average sold unit is currently being sold for -12% less than what it was originally listed for shows that the price correction everyone mentions is already occurring. I repeat, It’s an ongoing event already taking place.
The price ratios on Downtown Miami condos may increase later this year. However, this could also imply that the next units that will be offered may be priced based on current conditions. The best way to ensure how prices are compared to earlier in the year depends on the subject property. I encourage everyone to focus on the last closed sales that compare to the unit being discussed.
Source: Miami MLS and Trendgraphix. Information deemed reliable but not guaranteed. The report includes condo units among the zip codes of 33129,33130,33131,33132, and 33137. Some units in Midtown Miami are included on the report.
Understanding the trends on any real estate market doesn’t have to be difficult but it does take time and patience. In the case of Downtown Miami condos, it also takes some due diligence and homework. Future posts on the site will certainly be aimed at taking a closer look among the different buildings I cover. But with that said, I’m glad I did this post today because I’ve been wanting to publish a piece on the overall area for some time.
On a final note, I just realized that this story is officially my 100th post for the site. It’s hard to believe that I’ve written over 100 stories since I first started The Miami Observer! Thank you once again to everyone that reads our stories and calls us to help them! As always, I will continue to cover more information on Downtown Miami condos as the market continues to change over time.
Downtown Miami real estate is our specialty. Our site is dedicated in providing the most comprehensive information regarding the local market. In addition, we study the numbers on daily basis in an effort to best serve our clients. Contact us today at 305-305-3885 or at firstname.lastname@example.org if you’re interested in buying or selling your condo.