Should I sell my Brickell Condo? The 2017 Market Update
Have The Condo Values Peaked In Brickell And Is It Time To Sell my Brickell Condo?
“What is happening with the Brickell condo market?” and “Should I sell my Brickell condo” are often heard questions these days. Brickell, Miami’s poster child of the latest real estate boom, is seeing high amounts of inventory and correcting prices. Many of Brickell’s brand new luxury condos were bought by investors with the idea of “flipping” their unit right after the condo was delivered. With 1000’s of units being bought with the idea to resell, you can imagine the massive over-supply the Brickell market has experienced in the last 2 years. Besides this, the (inter)national media reporting negatively on the status of the Miami or Brickell real estate market doesn’t help this market either. As many of these reporters do not live in the city and do not experience the Brickell condo market on a daily basis, their opinions are mostly generalized and over dramatized opinions in order to attract readers.
At the David Siddons Group we are constantly analyzing the Miami Market. In this blog we want to show the reader insights into the Brickell condo market so potential sellers can draw their own conclusion on whether selling or holding on to their condo is the best option for them
The Brickell Real Estate Market
For our 2017 Mid-year Miami Real Estate Report we collected the below data. The data are taken over the MLS from South Florida and compare Q1 and Q2 of 2017 with the same time period in 2016. As always we prefer to look at different price points when analyzing the market.
Below the graphs, we added our personal narrative which is based on the numbers and our extensive professional experience in Brickell.
Months of inventory are the months it would take to sell all current listings if no listings are entering the market. As a general rule we say that:
- 6 Months or less (12 Months in luxury market*): Sellers market, more demand than supply with sellers having an advantage over buyers and prices are likely to increase.
- Between 6 and 9 months (12 – 18 in luxury market*): A Neutral or balanced market.
- 9 Months or more (18 in luxury market*): A buyers market with more supply than demand. Buyers are experiencing an advantage and prices need to be corrected in order to stabilize the market. This type of market leads to price decreases.
- Luxury Market is the $1M+ market
Although many of you will look first at the prices and the price changes, the months of inventory are equally, if not more important. When looking at these months of inventory you see there is an overwhelming amount of inventory with 27 months being the lowest level. This means Brickell is clearly in a buyers market. A market in which supply overrules demand and buyers have many choices, enabling them to be critical and to push the prices down. Like stated above, a buyers market is likely to have a downward effect on prices in order to stabilize the market.
This means that this market, which already saw decreasing prices in 2017, still offers room for some further price drops. If you want to sell in a market like this, you must price aggressively if you are to have success in selling.
I own a Brickell Condo – What should I do?
Be aware that especially in the $750K+ market prices have dropped significantly and inventory is high. As mentioned before there is still room for more price corrections so please keep this in mind when you are thinking about selling now or in the near future.
In case you do decide to sell, please do not fish for the highest price. Try to price your unit correctly and at market value. Buyers are not paying any given price anymore, they are more conscious and they are shopping around. Pricing your unit right the first time is proven to get you the best results. For the right prices you should use the above data as a guideline or contact the David Siddons Group directly.
The David Siddons Group sold this Brickell Penthouse for $932 per SF. The highest price per SF in the building ever achieved. Good quality condos are still selling, it is the generic kind of condos that are causing the high amount of inventory.
Which condos are still selling very well?
Being active in the Brickell market on a daily basis and studying the Brickell condo market we have found that these condos are still selling very well:
- Condos with direct ocean views
- Condos with unique features such as:
- Corners units, units with oversized balconies or terraces, high ceilings, refined finishes, limited amount of units per floor, private elevators etc
- Condos that house a large amount of owners as opposed to a large amount of renters
- Condos that were bought against the right market price. In the last few years prices have been inflated considerably and not all buyers (or buyer’s agents) did the right research for their clients to see whether their price was justified.