Real Estate Market Report: Brickell Q1

Brickell condos for sale The Miami Observer

Brickell- We’re on the brink of preparing for one of the year’s busiest, most extravagant weeks in the city. With Miami Music Week already knocking on our doors, what better time is there besides now to analyze how its market is doing so far?

 

                                 Brickell Market Report

 

                                                                    For Sale vs. Sold

Brickell real estate for sale The Miami Observer

Date 9/15 10/15 11/15 12/15 1/16 2/16
For Sale 1957 2048 2075 2034 2137 2212
New Listing 362 407 295 258 404 388
Sold 110 118 91 114 79 68
Pended 125 103 88 89 78 101
Months of Inventory (Closed Sales) 17.8 17.4 22.8 17.8 27.1 32.5
Months of Inventory (Pended Sales) 15.7 19.9 23.6 22.9 27.4 21.9
Absorption Rate (Closed Sales) % 5.6 5.8 4.4 5.6 3.7 3.1
Absorption Rate (Pended Sales) % 6.4 5 4.2 4.4 3.6 4.6
Avg. Active Price 707 701 709 714 706 712
Avg. Sold Price 537 550 438 557 491 531
Avg. Sq. Ft. Price (Sold) 436 475 397 462 434 430
Sold/List Diff. % 95 95 95 94 96 94
Sold/Orig LP Diff. % 91 91 92 91 91 90
Days on Market 121 120 115 142 148 141
Median 434 375 360 376 368 353

In the above report, courtesy of Trendgraphix, we have the latest overall activity from the last 6 months all the way to February. Not including new construction sales, we have seen a steady rate of 80 – 125 sales per month. Not steady, however, is the 13%  increase in inventory since September of 2015.

With 58 closings and 101 pending contracts from a total of over 2200 units available, I designate Brickell’s 1st quarter a Buyer’s Market. Each and every building will vary and each price point will show differences but based on a broad look at the market, there clearly are more than enough listings out there to meet the current level of activity.

 

                                                                Average Days On Market

Brickell real estate The Miami Obsever

Months of Inventory (Closed Sales) 17.8 17.4 22.8 17.8 27.1 32.5
Months of Inventory (Pended Sales) 15.7 19.9 23.6 22.9 27.4 21.9
Absorption Rate (Closed Sales) % 5.6 5.8 4.4 5.6 3.7 3.1
Absorption Rate (Pended Sales) % 6.4 5 4.2 4.4 3.6 4.6

 

Brickell real estate The Miami Observer
Absorption rates. Underutilized yet extremely useful to determine sales trends

 

Remember a few moments ago when I said the word Buyer’s Market? In case the number of homes available did not clarify I also included current months of inventory, sitting currently at over 30 months of inventory! Even for an urban real estate environment that’s strictly based on condos, 30 months is a lot of units. I also included the current absorption rates (rate at which homes sell based on a time period) trending downwards to 3.1%. For all Sellers looking to make a move in the next few months, a low absorption rate is a signal to place extra importance on accurate pricing and strong marketing as key to getting the attention of Buyers.

There are some silver linings to the current market. Buyers who once had trouble finding properties a few years back due to low levels of inventory now have a wide choice of units to pick. Instead of having a “get what you can” mentality,  there are now dozens of options to choose from in a line of very new highrise, luxurious developments.

For Sellers, the rising amount of inventory hasn’t really affected prices. It may take longer to sell but it’s very possible to sell for top dollar.

 

 

Final Thoughts

  • On average, it may take longer to sell your unit. I calculate between 2-4 months on most markets under $1,000,000. Luxury market will vary.
  • Buyers on the driver’s seat with many available opportunities calling for them in many directions.
  • With Brickell City Centre and more retail opportunities appearing as well as Florida’s continuous rise in population, this portion of Downtown Miami remains a great long term option due to its cosmopolitan lifestyle

For any questions or additional details on Brickell’s real estate market give us a call today.

Information is deemed reliable, but is not warranted.

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! 

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