Miami Condo Index – Brickell Key – January 2008

January 27, 2008 by Lucas Lechuga

Brickell Key Condo Index - January 2008

The Brickell Key Condo Index is back. I didn’t have time to provide a monthly update for December 2007. For those who have newly discovered this site, the Brickell Key Condo Index is a monthly post that provides important housing statistics pertaining to the 10 existing condo buildings located on Brickell Key. I also publish a monthly update pertaining to 17 well known buildings located in Brickell. Condos located in Downtown Miami and the Arts District of Miami will likely have their own index within the next six months. I’m just waiting for more buildings in those areas to be completed.

The average price per square foot of condos listed in Brickell Key has gone down since the November 2007 update. List prices have continued to drop each month since I began this index in June 2007. At that time, the average price per square foot of condos listed in Brickell was $519.97. It now stands at $486.07. That’s about a 6.5% drop in list prices in 7 months. These numbers are in line with the housing numbers that were released this past week. The weight-adjusted average also fell to $481.98 from November’s weight-adjusted average of $490.87.

Average price per square foot of Brickell Key condos currently listed on the MLS:

Brickell Key Condo Index - January 2008

The average price per square foot of condos that have sold within the past six months has gone down as well. This average dropped to $416.92 per square foot from the $435.21 that we saw in November 2007. In June, this average stood at $445.59. The January average represents a 6.4% drop within the past 7 months. The weight-adjusted average also fell to $414.54 from November’s weight-adjusted average of $433.31.

The average price per square foot of condos sold within the past six months:

  • Brickell Key One – 520 Brickell Key Drive | 33131 | $326.88
  • Brickell Key Two – 540 Brickell Key Drive | 33131 | $398.70
  • Carbonell – 901 Brickell Key Drive | 33131 | $481.29
  • Courts Brickell Key – 801 Brickell Key Drive | 33131 | $466.49
  • Courvoisier Courts – 701 Brickell Key Drive | 33131 | $444.20
  • Isola – 770 Claughton Island Drive | 33131 | $342.72
  • One Tequesta Point – 888 Brickell Key Drive | 33131 | $405.28
  • St. Louis – 800 Claughton Island Drive | 33131 | $421.25
  • Three Tequesta Point – 848 Brickell Key Drive | 33131 | $435.42
  • Two Tequesta Point – 808 Brickell Key Drive | 33131 | $446.98

The chart below reveals additional statistics pertaining to the 10 existing condo buildings in Brickell Key:

Brickell Key Condo Index - January 2008

The first column to the right of each condo development is the difference in the average sales price and list price for this month, expressed as a percentage. Courts Brickell Key was the only development that had a higher average sales price than list price.

The second column is the number of active listings in each development currently in the MLS. The third column shows the percentage that these listings represent over the total number of condo units in each development. The cells highlighted in green reveal those developments that have active listings that represent less than 10 percent of the the overall units in the building. As I’ve stated before, I find this to be a very healthy number. The ones highlighted in red reveal those developments that have active listings that represent over 20 percent of the overall units in the building. Proceed with caution! Condo developments with active listings representing less than 10 percent of the overall condos are considered very safe, in my opinion, and anything in the 10-15 percent range is considered normal, even in a healthy market.

The fourth column shows the number of pending sales while the fifth column displays the number of closed sales within the past two months. Since I didn’t have a December update, I decided to show the number of closed sales since November 28, 2007. As you can see, there have been 9 closed sales in Brickell Key within the past two months. There are currently 28 pending sales, however, 9 of these pending sales have been pending since August 2007 or longer. A few of them have been pending for over a year. I did notice that a good portion of the other 19 pending sales went pending within the first two weeks of the new year.

The sixth column shows the difference in the average list prices from November and this month, expressed a percentage. Those highlighted in red reveal those condo developments which have had a drop in their average list price while those highlighted in green reveal those that have had an increase. As you can see, Carbonell was the only condo building in Brickell Key that has had an increase in its average list price since November 2007. This is attributed to a penthouse condo that was listed the first week of December for around $1,500 per square foot!

The seventh column reveals the difference in average sales prices from November and this month, expressed as a percentage. Brickell Key I, Courts Brickell Key and Courvoisier Courts had average sales prices that were up from those found in November. The average at Isola dropped dramatically since November but not a lot can be made of it because only one closed sale in Isola has occurred within the past six months. It’s not a true average. However, three of the condos that have gone pending at Isola within the past three months have an average list price of $358 per square foot. This is close to the $342.72 price per square foot associated with the one condo that has sold within the past six months.

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25 Comments on "Miami Condo Index – Brickell Key – January 2008"


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Anonymous
UpperEastNYC
8 years 8 months ago

So it seems to me that the number of listings for each building (with the exception of Courv. Courts) is quite low and healthy. Is this a fair and accurate assumption? Shouldn’t there be much more supply per building on average in this market? Does anyone get the feeling that owners are holding out and not formally listing? I am assuming that their are a fare amount of investors on Brickell Key.

Thanks

Anonymous
8 years 8 months ago

UpperEastNYC,

There weren’t many investors in Brickell Key during our recent boom. With the exception of Carbonell, which was built in 2005, all of the existing condo buildings were built in 2002 or earlier. Most were built in the 1990s. Asia is the only building that is under construction in Brickell Key and there’s only something like 123 units there. The majority of investors were buying in preconstruction buildings in Brickell, Downtown Miami and the Arts District.

Anonymous
Raffi
8 years 8 months ago

There are some areas in Miami that will always hold value no matter what down turn comes along in the economy. Brickell Key is exclusive yet in the middle of everything, location is perfect with the peace of mind of good security. Two places that I think have gone pretty much un hurt by the housing bust is Brickell Key and any nice building on the ocean. Location Location Location, If your in the right place there will always be a market.

Anonymous
cyrus
8 years 8 months ago
raffi, this may be true in cities like nyc and san fran….eventhough those markets are also slowing down – NO area in miami is isolated from a downturn, regardless of location. some may sink less and a certain building or two may hold up (buildings built before 2003 or so) but overall, miami doesn’t have buildings like the ansonia or units in the pierre hotel and others in nyc that will never come in no matter what. these buildings have OLD money from generational wealth. miami is a boom and bust city – it didn’t hold up in the early/mid… Read more »
Anonymous
Raffi
8 years 8 months ago
cyrus, I agree with you that miami doesn’t have the prestige or power of a NY, and everything has gone down for the most part, but some building’s haven’t budged and that’s because of the location they are in. just two off the top of my head are williams island and ocean palms. the total collapse are in these cookie cutter homes and the over valuation of condos in downtown, brickell, and the design district. add high association fees and taxes and that was doom waiting to happen. I also agree that prices will still come down, and as I’ve… Read more »
Anonymous
8 years 8 months ago

Lucas – write a post about the important upcoming vote tomorrow.

Anonymous
GG
8 years 8 months ago

tomorrow vote on property taxes sh….

Anonymous
jcrimes
8 years 8 months ago

don’t vote in favor of the property tax cuts. if we want real tax reform, then don’t settle for stop gaps.

Anonymous
8 years 8 months ago

As some of you may already know, I was terminated by EWM this afternoon because of a lawsuit that was filed against EWM and myself by the developer of Opera Tower for $25M. The story will be published in the Miami Herald tomorrow and is now on their website. An interview with CBS will air tonight at 11pm.

Anonymous
JoeD
8 years 8 months ago

Lucas, you have my support. You will be better off without EWM. You are smart. It is a big feature in the front of them.

Anonymous
JoeD
8 years 8 months ago

I ment to say it is their loss. You are smarter than them

Anonymous
Brian
8 years 8 months ago

The ACLU will send you their hired guns of lawyers. You’ve got nothing to worry.

Anonymous
Mr Waverly
8 years 8 months ago

Just saw the news clip..That developer would rather channel his problems to others. Screw him … Honey, your development in is the toilet. Deal with it.

Anonymous
8 years 8 months ago

Lucas, keep your head up, take this time to get your broker’s license and go it alone. Good luck to you. I’m sure you will be fine.

Anonymous
Connie
8 years 8 months ago

Good Luck Lucas,thank you for letting us all know the TRUTH about THE OPERA TOWER

Anonymous
8 years 8 months ago

Thanks everyone for the support! For those of you who aren’t local here is the link to the CBS4 interview that aired tonight: http://cbs4.com/video/?id=46869@wfor.dayport.com

Anonymous
cyrus
8 years 8 months ago

EWM showed no spine! instead of letting you go, they should’ve shown some serious integrity and held onto you! what pansies…this is EXACTLY what’s wrong w/these companies…most of them are jelly fish.

lucas, keep up your great work and you will land somewhere that hopefully appreciates your hard work on keeping things truthful and honest…in the long run, this is what everyone wants in a realtor! EWM sucks … will NEVER work with them!

Anonymous
cyrus
8 years 8 months ago

….one more thing: in the longer run, you will look back and find this laughable – if you can go it on your own and become an independent realtor, you won’t have to deal w/firm beaurocracy, keep your blog, build up a greater following and eventually be far more successful. sometimes ‘bad’ press is the BEST press…best of luck and keep us posted…and certainly do NOT give up on this – don’t let anyone try to bully you around!

Anonymous
UpperEastNYC
8 years 8 months ago

Thanks Lucas. You have my support in this matter. I appreciate and value your honest approach and opinion in matters regarding the real estate environment in Miami. Investors and builders are so worried of truthful negative opinion they will fight (and sue) to shut off free speech. I hope you weather the storm and continue this blog.

Anonymous
BFG
8 years 8 months ago

As a previous poster mentioned, I would contact the ACLU.

This lawsuit is a complete joke. God help us all if we live in a country where any person or company can censor anyone they want just by filing a lawsuit.

Anonymous
jcrimes
8 years 8 months ago

i don’t think the aclu is gonna be much in the way of help here. lucas – is ewm obligated to provide you counsel? or are you an independent contractor and on your own in terms of counsel?

also, who’s the lawyer for the developer?

Anonymous
lara
8 years 8 months ago

It is a very sad story. You should find a good counsel. May be some company that can see value in your very active blog and get benefits from negative publicity would be able to sponsor your legal expenses. It is very hard to fight a powerful company when you are just an individual expressing your honest opinion. I really wish you good luck in this. We appreciate everything that you do here.

Anonymous
Anyonmous
8 years 7 months ago

I utilized a great attorney in Brickell Key, Ken Damas. He specializes in real estate law. He was able to save me roughly $200,000 on my condo purchases on South Beach.

Anonymous
JC
8 years 7 months ago

I have a contract on a unit in the MET 3, is there any update with that project?

Anonymous

[…] June 27, 2008.  It’s been quite some time since my last Brickell Key Condo Index.  In fact, the last was published in January 2008, or 5 months ago.  What’s interesting is that it has been one year since I started the […]

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