Surprising Trends and Remarkable Shifts | Brickell Q1 & Q2 2023 Market Summary

Brickell Q1 & Q2 2023 Market Summary: 33129: SOUTH BRICKELL

Buildings: Santa Maria, Bristol Tower, The Palace, Skyline, and Brickell Place 

As we delve further into the details, it becomes evident that South Brickell experienced the highest surge in supply, increasing by over 82% since the previous year. Remarkably, this area also experienced the highest price appreciation within the neighborhood, with a substantial rise of over 21% in value. 

Despite a notable increase in supply, South Brickell maintains a relatively balanced market with a 5.6-month inventory. Regarding the future landscape for the neighborhood, buyers are proceeding cautiously regarding older buildings. Although older buildings may offer better views, floor plans, or service, buyers want to avoid dealing with special assessments or the work that entails in these buildings.

As we continue to see the new condo legislation unfold, this will directly impact the older coastal buildings that predominantly comprise the South Brickell neighborhood. Ongoing work on the exterior and interior of buildings is anticipated to continue next year, which could hinder seller leverage in the near future.

Brickell Q1 & Q2 2023 Market Summary:  33130 New Brickell/NW Brickell

Buildings: Rise at Brickell City Centre, SLS, and Brickell Heights

Out of all the areas in Brickell and Brickell Key, this one has the lowest supply level, which currently holds 4.8 months of inventory, making it quite favorable for sellers. However, it’s worth noting that this area had the smallest appreciation growth, recording only a 5% increase from the previous year.

Although this area is experiencing the lowest supply level, the future trajectory for sellers could change as the days on the market for active listings continue to pile up at an average of 94 days. Without a healthy absorption rate, this could change the landscape from favoring sellers to favoring buyers. 

Brickell Q1 & Q2 2023 Market Summary: 33131: New Brickell/NE Brickell/Brickell Key

Buildings: Flatiron, Jade, Four Seasons, Brickell House, Echo, Reach, Carbonell, and Asia

In this area, there is a wide range of building categories, from highly desirable and top-performing condos to ones generally owned by a more significant portion of investors. This area in the neighborhood traditionally has a higher transaction volume given that there is a larger pool of investor owners, who usually have shorter holding periods when compared to primary homeowners. However, the tides have shifted this year, witnessing a notable drop of over 41% in volume compared to the prior year’s activity. 

As transaction volumes recede, a robust absorption rate becomes imperative to counterbalance the trend. However, the challenge emerges here: supply levels have increased by over 48%, and the average period to sell has increased by 140%, now with an average of 60 days to secure a buyer. 

ADVICE FOR SELLERS

With the evolution of new condo legislation, the prospect of continued renovations to building exteriors and interiors looms. This development can significantly impact seller advantage in the near future. Given that the neighborhood is still experiencing appreciation in value with moderate levels of supply, the window to sell will quickly diminish as time passes and inventory rises.

ADVICE FOR BUYERS

Embark on your condo search well in advance to gain a strategic edge. Our clients recognize that our strategy encompasses hyper-local market research, enabling us to assess a unit’s value accurately. We’ve been diligently reevaluating residences that have stayed on the market for extended periods and have undergone repeated price adjustments. By familiarizing yourself with the neighborhood, various buildings, and diverse floor plans, we will serve as a resource to your family to ensure that you make the best decision. 

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