 Miami Landscape
The landscape of Miami’s Brickell condo market continues to evolve. Once a very attractive investment opportunity to international buyers, the Miami condo market has stalled and is expected to remain stalled for the next 2 years. This market shift is creating opportunities for buyers as sales prices decline. We will shed some light on this shift and what it means for buyers and sellers.
BRICKELL REAL ESTATE CONDO MARKET REPORT (33130 Zip Code)
As all signs lead downward for the Miami condo market and as Q3 2017 ended, we are often asked the question, “How is the Miami Brickell Condo Real Estate Market?â€.
To provide educated answers to these questions, we rely on our analysis of various sources of market sales and economic data. The Vaughn Real Estate Team & Carrington Real Estate has partnered with Altos Research to deliver you up-to-date information about the Brickell condo market. Here are some market data highlights as of November 20, 2017:
- The median listed sale price in Brickell is $450,500 (up from $415,000 at the end of Q2 2017)
- Days on Market is still trending high at about 9 Months or 265 days (Slightly down from 272 at the end of Q2 2017)
The Brickell Real Estate market continues to show evidence of slowing down. Despite an increase in the median listed sale price, inventory levels have increased as new high priced condos units continue to enter the market (mostly priced between $500,000 and $800,000). This brings us to the 90 Day Rolling Average Price Trend Data that shows a steady price decline at the end of Q3 2017.
We continue to Watch the Market Action Index because it answers the question “How is the Market?” by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller’s Market conditions. Below 30, conditions favor the buyer. Market Action Index is at 22. This means we are still in a strong buyer’s market for Miami Brickell condos, and we expect to see this trend as more new condos enter the market in 2017-2018.
WHAT TO DO IN A BUYER’S MARKET?
For Buyers:
Brickell condo prices are on the decline and are continuing to shift downwards. This may be a great time to buy. Keep in mind; you may need to factor in your income and current mortgage interest rates to gauge how much you can afford to buy. The good news is that condos in Miami are becoming more affordable, mostly due to the growing “generic†condo inventory.
Most of these generic condos were purchased by investors with the intention of reselling them. These condos do not offer water views, unique features or high-end finishes. In this market, buyers have the upper hand, as it is not easy to sell these generic units and the investors do not like to sit on to these properties for too long. This is one of the many reasons that the Brickell market is seeing high condo inventory levels.
For Sellers: Brickell condo prices are on the decline and you are in a downward shift. You may have to list your condo for a lower value than when the market is trending upward. However, if you price it competitively during this time, you could attract a lot of buyers’ attention and possibly spark a bidding war between your property (further driving up its value) — since buyers will be on the hunt during this shift in the market. Also keep in mind that we expect to see a growing condo inventory well into 2018, so buyers have a plethora of condo units to choose from.
THE MIAMI MARKET AS A WHOLE
It is important to note that you should compare both the price values of condos and the inventory level of the market together. Typically in Miami, as the inventory decreases, condo prices go up. As the condo inventory increases, condo prices go down.
In late 2017, Miami condos on the market continue to surge up. Supply has hit 26 months. Developers are sitting on completed units that they are unable sell. Rendering months’ supply in their projects has reached several years.
Also, there are external factors that are affecting the Miami real estate market. As mortgage rates continue to increase, buyers can afford to buy less. In addition, South Americans and Europeans historically make up a big percentage of the Miami condo buyers, and with the U.S dollar now stronger than most of these foreign currencies, these buyers have now backed away from the market.
Foreign purchasers could also be chased off by the efforts of the Treasury Department’s Financial Crimes Enforcement Network which has Geographic Targeting Orders for hotspots of cash money laundering in real estate markets like Miami.
Miami Brickell condo market stats in this article are based off of the Miami, FL 33130 ZIP code.
Written by D. “Alex†Vaughn
Alex Vaughn, is a Broker Associate Realtor on The Vaughn Real Estate Team with Carrington Real Estate Services (US) LLC. Specializes in helping first home buyers find condominiums and homes in the Greater Miami area. Alex is a highly experienced agent, offering end-to-end professional service.