Numbers… I’ve always liked them and was always attracted to them. Numbers don’t lie and help to see the truth, even if they could be subject to manipulations and interpretations.
I’ve made a study of all the sales in Brickell and compared them with the sales at the Plaza Brickell, from 2014 to the First Quarter of 2017. This is a total of 3,500 units on the market between 2014 to March 31 2017.
Keep in mind that we are just at the end of the 1st Quarter of 2017, and I had to extrapolate the numbers to discern a trend in 2017. We had only 6 sales in the MLS during this quarter at the Plaza, and one sale out of the MLS (I did this one). So I did extrapolate it to 24 sales for the entire year.
We will sell at the Plaza in 2017 only 24 units, which is 50% down from 2016. Brickell will sell 712 units, which is only 9% down from 2016. We were very stable in 2014-2015-2016 but we are crashing in 2017.
Prices are going down since 2015, and are continuing to do so. Nothing drastic but we are losing 6% to 8% every year.
The median price in Brickell is $357,500 in 2017, down 6% from 2016. However the Plaza is bouncing up, but due to the low number of sales we cannot really conclude on this.
On Price per square foot we are down to $368/sq.ft. in Brickell vs $435/sq.ft. at the Plaza Brickell. We have less sales but our selling prices are surprisingly good.
Days on market are now down to 94 at the Plaza Brickell, and stable in Brickell at 103. That means that if your property is on the market for more than 100 days and is still not sold, then you need to reconsider your pricing. The numbers don’t lie.
The inventory is stable at the Plaza Brickell with 90 units on the market. The inventory in Brickell increased by 7% in Brickell to 2,141 units. The delivery of new buildings like Brickell Heights, 1010 Brickell and SLS Lux will surely increase this inventory.
The “Months of inventory on the market” is the metric used to study the market’s absorption rate. Basically if you have 54 units on the market and you sell 9 units per month, then you have 6 months of inventory on the market.
The experts like to say that a market with a 6 months inventory is a balanced market. Below 6 months it is a Sellers’ Market, and above 6 months it is a Buyers’ Market. I use 10 months myself because our market is a condominium market which is a bit different from a single family home market.
The Plaza Brickell used to have slightly less Months of inventory on the market than the rest of Brickell. With the numbers from the 1st quarter of 2017 we have now 45 months of inventory on the market, versus 36 months of inventory on the market for the rest of Brickell.
It means that the Plaza Brickell is not selling as well as the rest of Brickell, which is not a good sign.
I am very invested in the Plaza Brickell. It is the name of my company, it is where I live, it is where I’ve sold more than 150 units, and where I manage more than 70 rental units.
I can tell you that we have an excellent reputation, and excellent finances. The reason why we are selling less is that our prices are too high, and are not in accordance with the price correction that we are seeing now in Brickell.
The numbers don’t lie. If you need to sell your condominium today, then you need to lower your price to where the market is. Contact us if you want to discuss about your price, depending on your unit, your floorplan, your finishes and your views.
I currently have buyers who want to buy units specifically from the lines 02, 04, 06, 10 and 11, on the high floors. They all decided to wait because they can see that the asking prices at the Plaza are too high.
The inventory is growing. We recently had the new units of SLS Brickell and The Bond coming on the market, in addition to the ones from Brickell House and Millecento. In 3 months we will add the resales from Brickell Heights (2 towers), 1010 Brickell, and soon after SLS Lux. This is not going to help the market.
If you have to sell your unit now, pricing is key. We will help you to assess what will be a competitive price to make the best out of this market. Contact us for that.