Brickell Condo Market Analysis for Q1 & Q2 2023
As the Brickell and Brickell Key condo market continues to evolve, the balance of power between buyers and sellers becomes a pivotal question. The macroeconomic landscape presents challenges and opportunities, and this market summary aims to shed light on the current dynamics, offering valuable insights for both prospective buyers and sellers.
Market Inventory Balance:
The Brickell and Brickell Key condo market currently maintains a relatively balanced inventory level, with an average of about 5.4 months of supply. However, it's important to note that specific price segments are experiencing variations in supply levels.
- Properties priced between $1 million and $3 million have an average supply of 10.2 months.
- Properties in the $3 million to $5 million range are facing an average supply of 15.3 months.
Buyers in today's market are adopting a more conservative approach, basing their decisions on comparable sales, unless a property is truly unique. This means that overpricing average units, especially those in their original condition or in need of renovation, can prolong the selling period and may necessitate multiple price reductions.
While the sense of urgency among buyers has reduced compared to previous years, they remain discerning and are reluctant to consider significantly overpriced units. Consequently, proper pricing is emphasized for optimal results. With extended selling periods, increased inventory levels, and reduced transaction volume, the market is gradually shifting from a balanced state towards favoring buyers.
Brickell Q1 & Q2 2023 Market Summary - South Brickell (33129):
- Supply in South Brickell increased by over 82% compared to the previous year.
- Despite the surge in supply, the area maintains a relatively balanced market with a 5.6-month inventory.
- Buyers in this neighborhood are cautious about older buildings, as they seek to avoid special assessments and renovation work.
- Ongoing changes in condo legislation may impact older coastal buildings, potentially affecting seller leverage in the future.
Brickell Q1 & Q2 2023 Market Summary - Northwest Brickell (33130):
- This area has the lowest supply level in Brickell and Brickell Key, with 4.8 months of inventory, favoring sellers.
- However, appreciation growth in this area was relatively modest, with only a 5% increase from the previous year.
- The average time on the market for active listings is around 94 days, potentially shifting the market dynamics in favor of buyers if absorption rates don't improve.
Brickell Q1 & Q2 2023 Market Summary: North Brickell/Brickell Key (33131):
- This area boasts a diverse range of building categories, attracting both investors and primary homeowners.
- Transaction volumes dropped by over 41% compared to the previous year.
- Supply levels increased by over 48%, with an average time of 60 days to secure a buyer.
Advice for Buyers:
Begin your condo search well in advance to gain a strategic advantage. Thorough market research and a deep understanding of the neighborhood, various buildings, and different floor plans will be invaluable. Be open to reevaluating listings that have been on the market for extended periods, as they may present opportunities with adjusted prices. Engaging with local experts can help you make well-informed decisions.
Advice for Sellers:
With evolving condo legislation and potential renovations to building exteriors and interiors, seller advantages may diminish in the near future. Given the neighborhood's ongoing appreciation and moderate supply levels, acting swiftly is essential as time passes and inventory rises.
Interested in learning more about the market, contact us today!