Selling your 3 Bedroom Brickell Condo for a Miami Home
A three bedroom condo in Brickell vs a Miami single family home?
What will provide you with the best investment value?
Lately, we receive a considerable amount of phone calls from Brickell condo owners interested in selling their Brickell condo and investing in a single family home elsewhere in Miami. Most of them own a larger Brickell condo unit (3 bedrooms) and are now looking for that same space in a house.
We did the independent analysis for them and after running the numbers we could conclude that the investment potential of a Miami home seems much higher than that for a Brickell condo.
Brickell has been attracting young professionals for years and this trend continues. Most of these young families will move into a single family home at some point in their lives, creating a great demand for homes in the Grove, Gables, Pinecrest, South Miami and other areas.
Condo resales seem to be stumbling while the Miami housing market continues to go strong.
As the David Siddons Group reported several times before, the Brickell market is currently offering a high number of listings and sales is not keeping up with the increase in supply.
The enormous amount of new pre-construction condos has brought an imbalance in the Brickell market and most buyers looking for a condo are attracted to the pre-construction market causing Miami resale units to take a hit.
A few years ago, investors would buy Brickell condos almost without giving any thought on the unit’s specific features. Since the market was so hot and booming, these investors would get a great return on investment anyway. Today, the Brickell market is only profitable for those that are looking for well priced, unique and qualitative units that will be able to compete with the many new pre-construction condos that enter the market.
At the same time we see a huge increase in demand for single family homes while the supply is low. With Florida’s rising population, the demand for homes is rising at a likewise pace. Many young professionals in Miami are making a sidestep from a condo to a home. Those young couples now living in Brickell or Downtown will start a family at one point and will start to move out of their condo into a single family home. At the same time, wealthy South American families are emigrating to Miami and looking for a family home in a good neighborhood.
With a healthy demand and a limited supply, the Miami home market is going strong with no slow-down in the near future.
The Brickell Condo Market in Numbers
More and more 3 bedroom condos are entering the Brickell market, while sales cannot keep up with the rising supply. The average months of inventory in 2015 is slightly below the 30 months. This high number of inventory indicates a very imbalanced market and a clear buyers market.
The above data indicate that it will be hard for sellers to compete in the current Brickell market, unless your unit has outstanding features that will easily compete with any other unit (e.g. direct bay views). It is becoming increasingly challenging to sell Brickell condos as the market is a clear buyers market, providing buyers with a high number of condos to choose from.
There is a higher amount of 3 bedroom listings on the market while the demand for three bedrooms is not growing at the same rate. The inventory for 3 bedroom condos has been low for quite some time, but has shown an impressive increase over the last few months
The house market is becoming one of less and less supply – prices are increasing.
The home market is a different market. The supply of homes cannot be pushed up as easily as the supply of condos. Moreover, homes are properties to reside in for a longer period of time making this entire market more steady.
The single family home market in numbers – (3 − 4 Bedrooms) in Miami
Coral Gables
Between 6 and 10 months of inventory – neutral market
Coconut Grove
Between 5 and 7 months of inventory – neutral market to sellers market
Pinecrest
Between 5 and 7 months of inventory – neutral market to sellers market
South Miami
Between 5 and 7 months of inventory – neutral market to sellers market
In all of the tables above, it shows that inventory levels in the Miami single family home market are more healthy than in the condo market. Most markets show neutrality while occasionally reaching a sellers market. The demand for homes is healthy and the supply cannot be increased as easily as can be done with condos.
In desired areas like Coral Gables, Coconut Grove, South Miami, or Pinecrest good value homes are taken off the market in a heartbeat. In Coconut Grove, the single family homes are often sold before the listing hits the market and agents are calling each other for upcoming listings, just not to miss out!
Miami’s Single Family Home Market. A more stable market than the condo market
Would you sell your Brickell Condo to put your dollar into a more appreciating asset?
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