Just How Hot is the Miami Condo Market?
October 3, 2011 by Lucas Lechuga
Two Fridays ago, we received a new sales listing at Icon Brickell. It was for a 1 bedroom/1 bath condo located on the 9th floor with 726 square feet of interior, the smallest 1 bedroom floor plan at Icon Brickell. The owner wanted to aggressively price the unit so we decided to list it for $315,000, or $434 per square foot. This made it the lowest priced 1 bedroom at Icon Brickell by about $10K. The next lowest priced unit was only 6 square feet bigger but located 14 floors higher. We expected the condo to sell quickly but we were blown away by just how quickly we got it under contract.
Our new listing was tenant-occupied and we weren't able to get in to take pictures until the following Tuesday. Later that same night, we had two showings scheduled. Within an hour of the second showing, we received a verbal offer close to asking price. The next morning, we had a written contract waiting in our inbox and, after negotiating a few minor details, we had an executed contract within the next 24 hours.
Anyway you slice it, the Miami condo market is hot. With each passing month, I am more and more surprised by how limited people's options for condos has become. I learned last week that less than 37 developer units remain at Icon Brickell. That's remarkable considering that Icon Brickell has 1,796 total units.
Congrats to the buyer of a condo with a kitchenette located in a dark hallway. Must be great for dinner parties.
How hot is hot? What is the difference between the developer sale and resale?
Is shit in the diaper different than shit in the pot?
Wow, so much hate and jealousy from drew and poor. But I do have to agree with drew on one point, wtf was the buyer thinking paying 315k for a “studio”. As a property owner, I have mixed feelings about these kind of over the top sales. The buyer could have easily gotten a 2 bedroom for the same price 2 years ago but probably held himself back because he was too stupid and listened to the likes of Drew, Joe, Renter Tom, Poor and other stupid people.
I agree with imo as well.Who in his right mind would pay that for a dark studio???We haven’t seen the “BOTTOM’ yet!!!! Where is RENTER TOM? I remember him well on this site.
No hate or Jealousy IMO. Just a comment. Some people are bullish and some are realistic. Not to forget, some are insecure and some have thier head burried in the sand.
Just views and opinions. Just like yours…….
I have been saying all along the Miami Market is Special and almost Unique. There is a reason why it has it’s unique history of booms and bust. I am expecting another RE bubble in the next few years if the Economy doesn’t fall off a cliff.
–imo, “The buyer could have easily gotten a 2 bedroom for the same price 2 years ago but probably held himself back because he was too stupid and listened to the likes of Drew, Joe, Renter Tom, Poor and other stupid people”
Actually I owe a debt of gratitude to their kinds (all the gloom and doom people expressing their opinions). Thank you! Keep up the good work of keeping away the sheepish.
Cash deals, foreign buyers purchasing for “investment” and a poor national housing market despite record lows (rates sub-4% as of today) aren’t bullish indicators, nor are they indicative of a return to boom times.
People aren’t buying these units because they want to live all day in these units they are buying them because of their location and the ammenities in the buiding. You don’t buy a unit like this because you want to throw dinner parties. You buy it because its the cheapest way to get into this area in this building.
Look at most units in downtown areas and you’ll find something very similar if not worse. Seriously, how many downtowns can you live in a building like Icon?
And with projects like Citicenter coming Miami(read Downtown) is only getting more desireable.
Glad you think so highly of Icon, Gixxer. Yes, dinner parties was an extreme example, but based on that unflattering photo, it looks like frying an egg in that kitchen would be tough.
What’s funny is that in 2011 the trendy, impractical Phillipe Stark-designed crap is already out of style and owners will soon be embarassed that they live in a condo with silly fake statues in the driveway and giant useless chess pieces on the pool deck.
I see a special assessment coming to erase all that ghastly Halloween Decor in the ICON. Really who would want to live in a horror movie setting with dead people staring at you from every corner.
Now Paramount hires Lenny Kravitz, another eccentric to redo their building. I wonder how that will turn out.
You guys act like everyone in the world has the same taste. Were talking about a condo with 1700 units out of tens of thousands of units. And were basically talking about the lobby which most residents don’t actually go to. People here make it seem like the HOA mandates you decorate you actual unit with the same theme. When I hang out at my friend who lives here it pretty good. Not a fan of the yellow carpet but whatever. You can go to Club 50 and stubmle home home drunk and the pool is great. You can order… Read more »
This pic so represents Miami!
Well, ” I live at Icon Brickell”, but I do not have any money for furniture and sleeps on an air mattress on the floor.
I am going to sell it now, because I need to buy the latest Range Rover, wheny credit card has a huge debt!
Luxury in a vertical slum with 1800 units?
Have you been to that pool lately?
Tacky tourists add to the glam!
Who in their right mind wants to live like this ?
Again, fake and pretentious status!
Bienvenidos a Miami!
This is why Manhattan will always be Manhattan!
Hello,Everyone, It’s been a while– I just flew in as I am a newly minted snow bird (last winter). Condo living is something to get used to and I am still learning about it. Today,I have 2 questions to ask you, if you care. First, if you remember me from last year, I cried out for sky-high property tax for my condo. This year, however, my property tax is slashed to my delight (TRIM NOTICE) and so is the value of my unit (TRIM NOTICE) but how can it be? The units in my building have sold like hot cakes… Read more »
2011 Taxes are based on 2010 prices if assessments was done this year.
Your taxes may not be assessed every year so you may not see significant increase until your next assessment period.
Dear Make Me Think, Thank you for this. I have lots to learn.
You did not specify if you live in a Valet only building such as 10 Museum park or in a building where every unit comes with one parking space (either assigned or deeded) and you have to valet the second car. If you are more specific, someone can answer your question. Your property prices are appraised the lowest at this point of time. But the way it looks, they may start to reassess them higher very soon. So if you can, declare your homestead (your primary residence) in Miami so that not only do you get a further discount but… Read more »
Both are correct, tax assesement is somthing that is usually slow to happen, especially in an environment where prices are falling. So while current prices are going up the current tax decrease you are seeing is from them finally getting around and recognizing that prices declined from the peak. So let’s say it was 100 in 2007 and fell to 50 in 2009 and then went back up to 60 now. In many cases they are still catching up with the decrease from 100 to 50. With the homestead exemption your property taxes cant go up more than 3% or… Read more »
Wow, Thanks, Imo and Gixxer for these detailed infos.
How interesting that HOA owns unassigned parking spots. Developers/Banks are out of the picture. My building comes with assigned self-park space(s)with additional valet service for residents, which is in our contracts. My one bedroom has one assigned self-park spot, which is in my contract (when I bought it).Is this what you mean by “a deeded spot,” for which HOA will never charge, Gixxer?
I will definitely look into this homestead advantage. Thank you again, I am humbled.
Your self-park may be assigned OR deeded. Deeded is better. The other parking spaces are NOT “owned” by the HOA per se, they are common areas owned by all the condo unit owners and their use is governed by the HOA. By the way, anyone who thinks prices have bottomed in real estate overall is an idiot. You MUST look at each location very carefully and make a prudent decision if you don’t want to over pay. There are deals out there that make sense…but they won’t jump oton your plate, do your homework. Keep in mind that the VAST… Read more »
Oh, and by the way, both of my purchases were all cash. I am considering mortgages them (or at least one….the one I have zero plans on ever selling….the incredible beach one) for a 30 year mortgage under 4%……that is an incredible interest rate to lock in for such a long time. Generally, you shouldn’t borrow against your primary residence…and really only use purchase mortgages…but there are exceptions when interest rates are so incredibly low, that the home was purchased in all cash, and that the home is a single digit percentage of one’s net worth anyway so can be… Read more »
I am still searching for some of my earlier posts on the structural recession (versus a cyclical recession…perhaps the blog doesn’t go back that far anymore…???)… Renter Tom says: December 24, 2008 at 12:15 pm Credit fueled demand and inflation….a lot of credit was extended to consumer purchases, autos, and housing…to the point that repayment of principal risk increased dramatically (let’s hope the fed govt doesn’t get into the same situation and is unable to repay principal without devaluing the currency). Credit/liquidity overall has come to a screeching halt causing a structural shift down of the demand curve. Fed govt… Read more »
Incredible! My humble question brought out Renter Tom from hibernation. This shows no question is stupid or humble. This is all fun. Renter Tom, I’ll read my contract again to see if it is deeded or assigned. Keep up with your posts.
Good to hear from Tom. Would be curious to hear your thoughts on the overall economy short and long term. Glad you finally found your flat(s).
Cheers!
Thanks ellogova….appreciated. So far, good choices with little risk of any substantial price declines for these two condos (Zillow has them up 12.5% and 9.2% but that is just their estimate….just don’t want to lose money….of course transaction costs would eat up any gain anyway LOL). The U.S. went from say $300B to $1,800B annual additional debt. Pure insanity…. Here is my analogy that I have used for the past two years…. Say you own a grocery store (perishable goods). Last year your sales were $1M. But this year sales are trending to $900K….a 10% drop in sales…..not good, serious… Read more »
Seems like the “Socialist” country of Canada got it right, eh RT. Glad to see you have come to your senses.
Looks like most naysayers of the past have bought apartments finally! I wonder what gables did (as well as miami2009/miami2010). If Renter Tom became Owner Tom, then I guess, I can come back too. I quit the blog for a few months altogether and the past six months, I have started reading it again(old habits die hard). The blog has become quite slow but we can make it fun again. But I do not appreciate Renter Tom using “arse”. Arse is mine. The rest of you can use “ass”.
When I first heard about the Resort World project it didn’t take long before I was wondering what would AJ say now.
I was at City Hall last week and the food was pretty good. With Publix coming that area is shaping up nicely.
Au contraire mon frère Kramer (for those in Québec)…it isn’t that Canada got it right with socialism but rather the U.S. has gotten it sooo wrong with socialism that they have gotten worse than Canada…and of course the Canadian government’s much more fiscally conservative government makes our tax and spend liberal socialists look like psycho nutcases……truly, the change was wrong. We’ll be paying back these errors for generations.
Aj- “Looks like most naysayers of the past have bought apartments finally!” I am afraid you may be wrong about that. Many people listened to the naysayers and are now priced out of the prime Miami locations. I am afraid many may have missed their opportunity because the listened to the Gloom and Doom crowd and will again be priced out of the prime locations. Can you believe the gall of this guy(RT)? After preaching the gloom and doom gospel for years, he vanishes without a trace then shows up all smug, having bought not one but two condos. He… Read more »
Renter Tom is definitely self-absorbed dolt with delusions of grandeur, but nobody should be sorry for his dimwitted flock. People who listened to his drivel while he was busy condo shopping, deserve their station in life. Renters forever. Good for them.
Now, while duplicitous Tom is not nearly as smart as he thinks, some of his observations are clearly spot on. America’s economy is shot, and without top to bottom restructuring will remain so. No arguing about that.
Regardless, downtown Miami RE has bottomed, and Omni area is poised for doubling by the time World Resort Miami is completed.
Gixxer, Yes I am excited about all the things that are happening in and around 1800 Club. The entire area looks like it is on steroids. The biscayne blvd looks really good after all that redevelopment. New reataurants etc. There is an amazing cafeteria called la bottega opened up in my building in front of pace park. Everyone please check it out. it is family owned and home cooked gourmet Italian food and a tiramisu to die for with great views of the bay while you are dining. In my building just 18 units are listed for sale and most… Read more »
Hey AJ welcome back buddy : ). And yes MMT most of the good locations and good views are gone. That is why I finally pulled the trigger in early 2010. And regarding RT predictions, all I can say is that even a broken clock is right twice a day.
In RT’s defense he pretty much always played both sides of the fence. I mean he came to this site at Buyer Tom not Renter Tom. Here is one of his quotes from late 2009: “Combine that with eventual higher interest rates and home prices will stagnate at best for years to come. In the more immediate term, high levels of foreclosures will persist. We will be bouncing around the bottom for quite some time, at least through 2010. If you find something you like, get it at a good price, and plan on living there for at least 5… Read more »
The good ones are taken??? Oh get real. Miami prices are going down some more AND banks will be releasing more and more and more as foreclosures ramp up. You idiots bought around the peak….I bought 50%+ off to pre-bubble prices. You idiots kept hyping the market telling people over and over and over to “buy now” even when prices were WAY OVER PRICED. Get real. I was quite upfront what I wanted to do…which was to eventually buy. Should I still be renting….probably would still be cheaper but as I said I was looking to buy and didn’t want… Read more »
What were you right about again?
You need to tell your lawyer friend to speed up the process because investors like myself are complaining about the lack of inventory in the market.
You clown bought condo in Miami Beach, but worry about Downtown Miami? Stop it, please, that’s just too funny. The overbuilding and remaining inventory numbers are far worse on the Beach than in Brickell or Biscayne Corridor.
Gixxer—-I usually don’t bother to read your posts. But glancing….people were buying and flipping condos like crazy….no one was living in them for 5 years…..so duh.
Regardless of wheter they were doing it in the boom are not you shouldn’t purchase an non liquid asset like real estate if you don’t plan to hold if for 5 years. The boom is over an NO ONE here was even remotely suggesting that people should start flipping houses again. So basically you were setting up a straw man agrument. As far as the rest of you rant believe me I WANT to believe you. I was on the sidelines for all of 2010 while not working in school and watching $60k+ go out the door in tuition. And… Read more »
AJ, glad to see you returned to the blog! Been hoping you were doing well. I have been pursuing opportunities outside of Miami, so my interest in the blog and Miami condos has changed. I most likely would have purchased in the past year, but better job options apeared elsewhere. Still keep an eye on some units as a second home, but that is different from the primary residence search I had been conducting. Not interested in being a long distance landlord. My biggest concern the past couple of years has been the low interest rates, and what would happen… Read more »
CNBC just had a segment confirming what I said above about not enough inventory on the market right now. Investors are clamoring for more inventory only the real dogs remain unsold right now. Rental Demand is up, Labor and taxes are down significantly. Right now is a sweet spot for investors but Supply is down drastically. Realtors are telling me that there will be more foreclosures coming on the market in months but competition is stiff and Investors from as far away as Australia makes it difficult to get good deals.
Article that touches on foreclosures and the shadow market: http://www.miamitodaynews.com/news/111013/story2.shtml “We’re down to about a 30-day supply of foreclosures,” Mr. Levine said, “and they are selling almost faster than they can come on the market. One property that came on the market recently had 100 offers. A lot of people are chasing these properties because the prices are so good.” “Many are offering cash sight unseen,” she said. What’s keeping prices from escalating more quickly, brokers agree, is uncertainty about the “shadow market,” the number of foreclosed properties held by lenders that haven’t yet been offered for sale.” “The foreclosure… Read more »
Yep — bought two you (sarcastic) hero worshipper you. They are both for my use, not gonna rent them, not flipping them. So far, so good. Both were “distressed” situations. One the seller really needed to sell and got realistic with price and the realtor called me 6 months after I had seen it to let me know the seller just dramatically dropped the price (I was the first call too). Realtor agreed to give me back 1.5% of the commission since the realtor was on both sides of the transaction….so my negotiations for the 1.5% with the promise of… Read more »
Oh and small world. In my research way back when I came across suspicious transactions involving a Laura e. Diaz…..fast forward to October 2011 and there was an article about she and 19 others just got indicted! I had wondered back then why isn’t this person in prison….well probably gonna happen now. Well, my research indicates the massive lis pendens filings start to advance with those units coming onto the market over the next 24 months. Ask any condo association about lis pendens units (typically not paying HOA fees…although quite a few are they keep that current so they can… Read more »
RT, It does not matter if all is not well up there in Golden Beach or else where or Ricky lost money. Downtown is roaring and raring to go. Just today I was shopping/driving in Midtown complex and it is shaping up to be the most beautiful, desirable and livable enclave in Miami. Same goes with OMNI/Arts district with or without the Genting project. Brickell will eventually transform from a cluster of Moscow/Beijing style apartment blocks to a live/shop/play with the coming Citicenter project augmenting the existing Mary Brickell Village. This greater downtown area is doing very well bucking the… Read more »
Renter Tom, you sound so smug in describing what an amazing deal you got after all your “careful market study” and how much you paid, in cash of course. Then you go on to talk about the $100,000 you have for the renovations. Well, good for you and all your tireless research and endless supply of money. Sounds a lot like bragging. The one question I do have is, if you got such a great deal, based purely on your “careful market study” and team of magical attorneys, then why have you not mentioned which 2 buildings you purchased in?… Read more »
RT says “…I don’t mention the buildings out of privacy…”
Or because you’re most likely full of sh#t.
HGTV should have followed RT looking at all 300 units with his negative comments–poor realtor must have felt 100 y/o after working with him.
–RT, “I’m prepared to accept any loses….and have no delusion that prices are going to suddenly spike upward. I played my hand and am now at the mercy of the market….so be it.” full of bs and such a f*ing hypocrite! You advised others against buying 1 home for themselves but it is ok for you to buy 2 homes with one clearly being for speculation. I don’t blame you because your bets on higher interest rates went against you. your money earning 1-2% in the bank will not maintain your lifestyle for long. Your bet against the dollar hasn’t… Read more »
MMT, you are absolutely correct. With your money making only 1-2% and inflation at around 3-4% (if you see the prices in the grocery stores going up, it feels double that), RT is actually losing money by the day.
He did the smart thing by investing in Miami RE. I am not sure if his investment on the beach will yield the same return as Downtown Miami which is exploding. Nevertheless Miami in general will do ok compared to the rest of the country only because it is the darling of the whole World.