Miami Condo Index – Brickell – July 2007

July 20, 2007 by Lucas Lechuga

You may have noticed that some of the June numbers have changed. This is because I originally took out the closed sales that were obviously due to mortgage fraud. I recently went back and included those sales because I wanted to present things just as they were. However, this made listings appear to be priced more accurately, which they aren’t. To condo owners, and to some Realtors not in the know, these fraudulent transactions have made their listings appear justified. They need to realize that these transactions are just that, fraudulent, and very inaccurate.

The average price per square foot of condo units listed in the 18 Brickell buildings covered in my index dropped $7.44 since last month. A drop in the price of condos listed in Brickell over the last month was highly expected. I actually thought that prices would have come down even more though. These 18 buildings in Brickell had an average price per square foot of $528.84 this month versus $536.28 in June. The weighted average price per square foot was $540.17 for July versus $547.06 in June.

The most shocking thing that the July Brickell condo index revealed was the number of transactions that occurred in one month’s time. There are a total of 5,348 condo units represented in the 18 buildings that comprise my Brickell condo index. Take a guess at how many units have closed from June 19, 2007 to July 18, 2007.

Had enough time to come up with a guesstimate? Nine. That’s the number of units that sold during that time period throughout the 18 buildings that make up the Brickell condo index. Everyone knows the market is slow but I don’t think anyone could have guessed to what extent. Nine! I still can’t get that out of my head. There are a total of 875 units available on the market right now in those 18 buildings. This equates to 16.36 percent of the total units. This number is actually much higher in many of the newer buildings. Many of the older buildings have 20 or less listings in the entire building. The instability lies in the newer buildings; the buildings that were heavily funded by speculators.

The average price per square foot of condos sold over the past six months in Brickell actually went up slightly. But keep in mind that there were nine transactions in all 18 buildings. Most Realtors would focus on the fact that prices are actually going up. However, I will tell you, first hand, that these numbers are attributed to fraudulent transactions. The price per square foot went from $471.76, in June, to $473.95, in July. Most of this was due to a transaction that appears to be fraudulent at The Sail on Brickell.

The reason why I feel that this transaction is fraudulent is for a number of reasons. One, the unit was sold at the highest price per square foot in the building with concrete floors, two, the broker is a discount broker who charges 4 percent per transaction, three, in every transaction he seems to find the buyer and already holds the listing, and four, he finds the buyer within four days. I did a search by the broker’s email to see what other transactions have occurred. I’m not going to name names but let’s just say that this broker has at least six transactions where this has occurred. The same exact thing. He finds a buyer to acquire a condo at The Sail on Brickell within four days at the highest price possible. Let me tell you, firsthand as a Realtor, that it is hard enough to find a buyer in this market to buy something at the best price available. How is this guy finding a buyer at the highest price available? Within 4 days? Like I said, I’m not going to name names but something fishy is going on there. If someone, like the Miami Herald, wants to investigate this thoroughly and name me as the source, then so be it, but I’m not divulging names. I don’t want to have a hit-man after me. Hopefully I’m wrong about what has occurred in The Sail at Brickell, but I doubt it.

Average price per square foot of units currently listed on the MLS:

Average price per square foot of units sold in the past 6 months:

  • Atlantis – 2025 Brickell Ave | 33129 | $335.12
  • Brickell on the River – 31 SE 5 St | 33131 | $397.69
  • Bristol Tower – 2127 Brickell Ave | 33129 | $417.82
  • Emerald at Brickell – 218 SE 14 St | 33131 | $570.51
  • Four Seasons Residences – 1425 Brickell Ave | 33131 | $763.51
  • Imperial at Brickell – 1627 Brickell Ave | 33129 | $319.56
  • Jade – 1331 Brickell Bay Dr | 33131 | $668.23
  • Neo Vertika – 690 SW 1 Ct | 33130 | $375.53
  • One Miami – 325 & 335 S Biscayne Blvd | 33131 | $453.66
  • Sail on Brickell – 170 SE 14 St | 33131 | $369.08
  • Santa Maria – 1643 Brickell Ave | 33129 | $605.15
  • Skyline on Brickell – 2101 Brickell Ave | 33129 | $471.39
  • Solaris at Brickell – 186 SE 12 Ter | 33131 | $436.21
  • The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $636.74
  • The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $498.17
  • The Palace – 1541 Brickell Ave | 33129 | $352.77
  • Villa Regina – 1581 Brickell Ave | 33129 | $316.62
  • Vue at Brickell – 1250 S Miami Ave | 33131 | $543.37

Sold-to-Listed Ratio expressed as a percentage:

  • Atlantis – 2025 Brickell Ave | 33129 | 0.77%
  • Brickell on the River – 31 SE 5 St | 33131 | 17.23%
  • Bristol Tower – 2127 Brickell Ave | 33129 | 17.19%
  • Emerald at Brickell – 218 SE 14 St | 33131 | -3.02%
  • Four Seasons Residences – 1425 Brickell Ave | 33131 | 16.68%
  • Imperial at Brickell – 1627 Brickell Ave | 33129 | 22.35%
  • Jade – 1331 Brickell Bay Dr | 33131 | 24.50%
  • Neo Vertika – 690 SW 1 Ct | 33130 | 9.87%
  • One Miami – 325 & 335 S Biscayne Blvd | 33131 | 3.72%
  • Sail on Brickell – 170 SE 14 St | 33131 | 32.46%
  • Santa Maria – 1643 Brickell Ave | 33129 | 13.51%
  • Skyline on Brickell – 2101 Brickell Ave | 33129 | 4.51%
  • Solaris at Brickell – 186 SE 12 Ter | 33131 | 14.86%
  • The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | 2.70%
  • The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | 1.01%
  • The Palace – 1541 Brickell Ave | 33129 | 8.68%
  • Villa Regina – 1581 Brickell Ave | 33129 | 30.64%
  • Vue at Brickell – 1250 S Miami Ave | 33131 | 1.53%

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13 Comments on "Miami Condo Index – Brickell – July 2007"


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Anonymous
9 years 2 months ago

Lucas – great info. Do you think the small number of sales this month is a reflection of above market pricing?

Anonymous
9 years 2 months ago
I definitely think prices need to come in a lot in order for buyers to be enticed to buy. For the most part, buyers are waiting on the sidelines. Buyers have an idea of the seriousness of the oversupply problem that we have in the condo market throughout Miami. They read the newspaper and various websites on the Internet so what I’m reporting is nothing new to them. It is probably surprising for them to hear it from a Realtor though. The statistics that I provide paint an accurate picture of the condo market. Numbers don’t lie. The bulk of… Read more »
Anonymous
9 years 2 months ago
Lucas – would love to have a crystal ball about now. I agree with your assessment on the most difficult areas in the Brickell-Biscayne Corridor. Your analysis here tells me that the prices on Brickell for existing inventory still need to come down. The sale/list price ratio is out of whack in some of these buildings. Price is the only stimulant to the market right now. Your post on 10 Museum shows a falling market price on a brand new luxury building – I think that is going to push these resale numbers down even further. I enjoyed lunch –… Read more »
Anonymous
9 years 2 months ago
Lucas – Thanks for all of this analysis. It is amazing that the fraud is so obvious and so prevalent. Another point to consider about the instability of the newer buildings is that a buyer buying into one of the newest buildings can’t be sure how long it will take for all of the units to be closed on or foreclosed on. What then happens to that buyer’s maintenance costs? How will the amenities and services that were promised by the developer be delivered if half of the units are not paying their maintenance? I think this makes a great… Read more »
Anonymous
Michael
9 years 2 months ago

Units at Latitude on the River will start to close in the coming weeks. The location is great and these units do not appear to have been overpriced when first offered. This will be the first real test of the Brickell condo market as 400+ units close.
Any thoughts on this particular project?

Anonymous
9 years 2 months ago
I’m looking forward to seeing Latitude on the River when it is complete. The prices that were offered for Latitude on the River in 2004 were reasonable. That neighborhood had a ways to go in 2004 but the neighborhood has made great strides in the past three years. The addition of Mary Brickell Village and the Miami river walk has done a lot for that area. It will be interesting to see who walks and who closes in this building. Someone contacted me last week to help him sell his 2 bedroom at Latitude. I will post details about that… Read more »
Anonymous

[…] per square foot. That is less than the average price per square foot of any of the buildings in the July Brickell condo index that were built after […]

Anonymous
JOSE LAYA
9 years 2 months ago
Lucas – Great Job! It’s great to see an agent that speaks the facts… no hyperbole, no BS. You’re right-on about the bulk of the problem stretching from the Brickell corridor up to Arts District, and South Beach and Coral Gables are holding steady. What we all need to remember is that prices in these areas were artificially inflated, for the most part, so it is expected that prices have to continue to come down. When people ask me about the condo market in Miami, I was always say that you need to consider geography, unit and age of the… Read more »
Anonymous
9 years 2 months ago
Jose, Great comment and thank you for the compliment on my blog. I agree with you 100%. The sooner that sellers become aware of the true condition of the Miami condo market, the sooner that transactions will occur again. Realtors aren’t doing anybody any good by accepting listings that are priced at 2006 prices. We need to educate sellers so that they realize how many new units will be coming on the market in the next 6 months. They definitely don’t want to compete with that type of inventory. If they are truly motivated then it is better to reduce… Read more »
Anonymous

[…] mentioned last week in the July Brickell condo index that only 9 closed condo sales occurred from June 19, 2007 to July 18, 2007, in the neighborhood of […]

Anonymous

[…] Miami Condo Sellers Posted on September 27, 2007 by miamipress I mentioned last week in the July Brickell condo index that only 9 closed condo sales occurred from June 19, 2007 to July 18, 2007, in the 18 buildings […]

Anonymous

[…] at The Sail on Brickell listed for $599,000. Both short-sales are the condos that I discussed in my July and September posts that had recently closed. This makes it apparent to me that the buyers never […]

Anonymous

[…] at The Sail on Brickell listed for $599,000. Both short-sales are the condos that I discussed in my July and September posts that had recently closed. This makes it apparent to me that the buyers never […]

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