The #'s are in for the 3rd Quarter... what is happening in the Brickell Condo Market?
First here's a snapshot of where the market stands for the 3rd Quarter. Look at these #'s 1,166 Listings,186 Closed Sales and 19 Months of Supply, these #'s are terrible. Next let's see where most of the market activity is taking place... under $1 Million 158 out of 186 Closed Sales thats 85% of the market. Then we have some Sales in $1-$3, then at $3-million plus only 1 Sale for the Quarter... definitely a slow down at the higher end.
Look at this 36 Listings above $3-Million and only 1 Sale for the Quarter... The under $1-Million dollar price range is doing well in Brickell, but then at $1-Million plus look how it all slows down, and this is weighing on the market here. We can say from being in the markets daily is that this is not only in Brickell, there appears to be a slow down at the higher end especially in the condo market. We are already working on a video about this coming out soon.
The Highest price of a condo sold in the 3rd Quarter was a high-floor 2 Bedroom at The Four Seasons Brickell which sold for $3.2-Million and $1,900/sqft. Now we compare the 3rd Quarter to the previous 2 Quarters to see if we can spot any trends... And all key indicators having been moving down since the 1st Quarter. Look at this - Actives are up, Closed Sales down, Months of Supply up, Days on Market up, and both Median Price Per Sqft and Median Price Sold are down. Not good at all, this will definitely continue to put downward pressure on prices.
If you are a Seller in Brickell please pay attention. If you want to sell your condo we suggest to price it below the market to be able to attract as much attention as possible right from the start, and also please know that if your condo is not in turnkey condition you will have to discount it even further to get it sold. With over 1,100 listings your best chance to sell is from Day 1. This is not a market to be " testing out your price".
Also, if you are under $1-Million the market is moving faster than above $1-Million so be patient. ANd Lastly, since there are a lot of older buildings in the Brickell we do want to say there is still a lot of negative press about older buildings and many Buyers are staying away from them, so please be patient. For Buyers - obviously from the data here this is a great Buyers market, and prices have been steadily decreasing since the 1st Quarter and now that interest rates have just come down to below 6.5% which is of great help to you.
Keep in mind with condos you have to go building by building as one building may have a lot of Active Listings for sale while the one next door may have low inventory, but with 1,100 Actives we think you will be able to find the right condo for you.
In summary, the #'s for the 3rd Quarter in Brickell are terrible. All key indicators are at their lowest levels of the year, and Actives are way too high all causing prices to decrease. These are typical signs of what happens in a correction as the market is trying to find its floor, its new base level. And from what the #'s show here it looks like prices will continue to decrease, so hang on.
As we saw the market under $1-Million dollars is moving much faster than the market above $1-Million and as you saw at $3-Million plus it drops off dramatically so make sure to price it correctly from the start and be patient. As we start the 4th Quarter and interest rates have moved to below 6.5% we need to see if this jumpstarts the market to help clear some inventory.
As I start my 20th year in Miami real estate I have seen a lot of different markets and can tell you this is not doom and gloom, but this is exactly what happens in a correction, you just have to know how to navigate thru it and be patient, so please make sure to work with a professional that can guide you through.
We thank you for watching, and We'll see you soon.