Miami Condo Index – Brickell – November 2008
It’s been three months since I last released the Brickell Condo Index. The last update for Brickell condos was published in August 2008. The data used to create the statistics below was collected on November 18, 2008 from the MLS. You may want to also compare the statistics below to those published a year ago in November 2007. It really helps to put into perspective how inflated prices were a year ago in some of the condo developments in Brickell.
The Brickell Condo Index now stands at an average price of $429.52 per square foot. This represents a 2.28 percent drop in the average asking prices of the 18 condo developments that comprise the Brickell Condo Index over the past three months.
Average price per square foot of Brickell condos currently listed on the MLS:
The average price of Brickell condos sold over the past six months has dropped 7.13 percent to $291.59 per square foot from August’s average of $313.97. As with the last update, the average would normally be higher had a sale occurred in the MLS within the past six months at Four Seasons Residences, which sells at the highest price per square foot of the 18 condo developments comprising the Brickell Condo Index.
Average price per square foot of Brickell condos sold in the MLS within the past six months:
- Atlantis – 2025 Brickell Ave | 33129 | $250.71
- Brickell on the River – 31 SE 5 St | 33131 | $264.63
- Bristol Tower – 2127 Brickell Ave | 33129 | $364.86
- Emerald at Brickell – 218 SE 14 St | 33131 | $238.88
- Four Seasons Residences – 1425 Brickell Ave | 33131 | N/A
- Imperial at Brickell – 1627 Brickell Ave | 33129 | $316.83
- Jade – 1331 Brickell Bay Dr | 33131 | $385.81
- Latitude on the River – 185 SW 7 St | 33130 | N/A
- Neo Vertika – 690 SW 1 Ct | 33130 | $228.00
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $296.13
- Santa Maria – 1643 Brickell Ave | 33129 | $661.70
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $298.68
- Solaris at Brickell – 186 SE 12 Ter | 33131 | $200.00
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $201.44
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $289.18
- The Palace – 1541 Brickell Ave | 33129 | $260.14
- Villa Regina – 1581 Brickell Ave | 33129 | $249.88
- Vue at Brickell – 1250 S Miami Ave | 33131 | $158.55
Below you will find some additional statistics:
The first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, expressed as a percentage. An “N/A” is found next to Four Seasons Residences and Latitude on the River since this percentage could not be computed as each building failed to have a closed sale within the past six months through the MLS. A high percentage indicates that there is a large discrepancy between the average asking price for condos currently on the market and what has actually sold within the past six months.
The second column is the number of active listings in each condo 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 condo developments that have active listings that represent less than 10 percent of the the overall units in the building. To me, this is one indication of a sound condo development. Atlantis, Bristol Tower, Four Seasons Residences, Imperial at Brickell, The Palace and Villa Regina are the condo buildings highlighted in green. The ones highlighted in red reveal those condo developments that have active listings that represent over 20 percent of the overall units in the building. There’s definitely underlying risk in buying in these condo developments and I’d only advise buying in one of these if the price justifies the risk. This month, Solaris at Brickell is the only condo developments highlighted in red. This is usually a good indication that prices will fall further in future months. The condo developments with active listings less than 10 percent are considered 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 six months. There are a total of 94 total pending sales in the 18 condo buildings represented in the Brickell Condo Index. In August, there were a total of 79 pending sales at the time. Once again, The Club at Brickell Bay, Vue at Brickell and Jade each have pending sales in the double digits. The same goes for closed sales within the past six months in each of these condo developments. Skyline on Brickell also hit the double digit mark with a totla of 13 closed sales in the MLS within the past six months. In August, there were a total of 123 closed sales within the past six months. This figure has gone up almost 32 percent since the August update. The 18 Brickell condo developments had a total of 164 closed sales within the past six months.The vast majority of these closings occurred in just a handful of the condo developments, however. 8 of the condo developments had three or less closings within the past six months.
The sixth column shows the difference in the average list prices from this month’s and August’s, expressed as a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. Emerald at Brickell saw asking prices drop a little over 10.5 percent while Solaris at Brickell shed about 9.8 percent from its average asking price in August. An increase in average asking prices occurred in 8 of the condo developments in the Brickell Condo Index.
The seventh column reveals the difference in average sales prices from this month’s and August’s, expressed as a percentage. Vue at Brickell saw the largest drop with a 15.94 percent decline. Jade, Neo Vertika, The Club at Brickell Bay and Villa Regina also had double digits drops. It should be noted that Villa Regina only had one closed sale within the past six months to calculate its new average. Atlantis, Santa Maria, Skyline on Brickell and The Palace each experienced an increase in their average sales prices for the previous six months.
Vue at Brickell is very, very close to hitting the $150 average per square foot mark for closed sales over the previous six months. In August, the condos available on the market at Vue at Brickell represented about 28 percent of the overall units in the building. This figure now resides at around 17 percent. It will be interesting to see how much lower the average price per square foot of condos sold at Vue at Brickell will go if inventory levels continue to improve. As I mentioned earlier, the 10-15 percent range is normal even in a healthy market. Perhaps some sort of stability is right around the corner for Vue at Brickell. The same can be said for Jade and The Club at Brickell which have also continued to show progress in reaching normal inventory levels.
Miami Condo Index – Brickell – August 2008
It has been four months since the last installment of the Miami Condo Index for Brickell. The last update for Brickell condos was provided in April 2008. The data below was collected on August 18, 2008 from the MLS. While crunching the numbers earlier today, it quickly became apparent that prices have continued to fall within the past four months and, in some cases, prices have fallen hard.
The Brickell Condo Index now stands at an average price per square foot of $441.84. This represents a 7.71 percent drop in the average asking prices of the 18 condo developments that comprise the Brickell Condo Index over the past four months, or an annualized loss of 23.13 percent. You’ll see in the graph towards the bottom of the post that about four condo developments have had significant reductions in their average asking prices within the past four months.
Average price per square foot of Brickell condos currently listed on the MLS:
The average price of Brickell condos sold over the past six months has dropped 23.49 percent to $313.97 per square foot from April’s average of $410.38. However, much of this drop is attributed to the fact that Four Seasons Residences, which sells at the highest price per square foot of the 18 condo developments comprising the Brickell Condo Index, has not had one closed sale in the MLS within the past six months and therefore was not included in this month’s average. The average would have dropped around 14.37 percent had Four Seasons Residences been included using its April average. That would still have represented an annualized drop in the average sales prices of about 43 percent!!!
Average price per square foot of Brickell condos sold in the MLS within the past six months:
- Atlantis – 2025 Brickell Ave | 33129 | $241.89
- Brickell on the River – 31 SE 5 St | 33131 | N/A
- Bristol Tower – 2127 Brickell Ave | 33129 | $379.26
- Emerald at Brickell – 218 SE 14 St | 33131 | $240.51
- Four Seasons Residences – 1425 Brickell Ave | 33131 | N/A
- Imperial at Brickell – 1627 Brickell Ave | 33129 | $316.83
- Jade – 1331 Brickell Bay Dr | 33131 | $447.72
- Latitude on the River – 185 SW 7 St | 33130 | $323.74
- Neo Vertika – 690 SW 1 Ct | 33130 | $264.58
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $316.15
- Santa Maria – 1643 Brickell Ave | 33129 | $625.05
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $296.45
- Solaris at Brickell – 186 SE 12 Ter | 33131 | N/A
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $224.18
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $311.29
- The Palace – 1541 Brickell Ave | 33129 | $240.85
- Villa Regina – 1581 Brickell Ave | 33129 | $292.44
- Vue at Brickell – 1250 S Miami Ave | 33131 | $188.62
Below you will find some additional statistics:
As in the past, the first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, expressed as a percentage. An “N/A” is found next to Brickell on the River, Four Seasons Residences and Solaris at Brickell since this percentage could not be computed as each building failed to have a closed sale within the past six months through the MLS, and thus did not have an average price per square foot for condos sold. A high percentage indicates that there is a large discrepancy between the average asking price for condos currently on the market and what has actually sold within the past six months.
The second column is the number of active listings in each condo 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 condo developments that have active listings that represent less than 10 percent of the the overall units in the building. To me, this is one indication of a sound condo development. Bristol Tower, Four Seasons Residences, Imperial at Brickell, Santa Maria, The Palace and Villa Regina are the condo buildings highlighted in green. All, with the exception of Four Seasons Residences, were built prior to 2000 and none were targets for wild speculation during the last real estate boom. The ones highlighted in red reveal those condo developments that have active listings that represent over 20 percent of the overall units in the building. There’s definitely underlying risk in buying in these condo developments and I’d only advise buying in one of these if the price justifies the risk. Jade, Solaris at Brickell and Vue at Brickell are the condo developments highlighted in red. Each was built in 2004 or after and victimized by speculation and rampant mortgage fraud. Prices in each have fallen like a ton of bricks within the past year. The condo developments with active listings less than 10 percent are considered 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 six months. There are a total of 79 total pending sales in the 18 condo buildings represented in the Brickell Condo Index. In April, there were a total of 58 pending sales at the time. The Club at Brickell Bay, Vue at Brickell and Jade each have pending sales in the double digits. The same goes for closed sales within the past six months in each of these condo developments. In April, there were a total of 64 closed sales within the past six months. This figure has almost doubled since April with a total of 123 closed sales within the past six months. With 25 closed sales within the past six months and 25 pending sales in the pipeline at The Club at Brickell, I question myself whether some sort of stability is finally being reached. Again, the 25 closed sales had an average price of around $224 per square foot. If the answer to my questions is no, then where will the dust finally settle? Of the three condo developments, The Club at Brickell Bay was the only one which has had a reduction in its active listings since April. That, to me, is progress. From November 2007 until April 2008, average sales prices at The Club at Brickell Bay fell about 46 percent. Now since April, we have seen another large drop of about 39 percent in its average sales price. By year’s end, can prices at The Club at Brickell Bay hit the $150 per square foot mark that many of the commentors on this blog have mentioned? A 30 percent drop in sales prices will bring us very, very close to that oft-mentioned number. A better question is, will the pundits of this blog revise their guidance downward if that figure does become an eventuality in a few condo developments in Brickell?
The sixth column shows the difference in the average list prices from this month’s and April’s, expressed as a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. Emerald at Brickell saw asking prices drop a little over 23 percent, Vue at Brickell slightly under 23 percent, Solaris at Brickell around 20 percent, The Club at Brickell Bay about 17.5 percent, Neo Vertika 11.4 percent and Jade 11.25 percent. Only Santa Maria and The Palace experienced average list prices actually rise.
The seventh column reveals the difference in average sales prices from this month’s and April’s, expressed as a percentage. Emerald at Brickell saw the largest drop with a 41.21 percent decline, although only one closed sale was found in the MLS within the past six months to calculate its new average. It has a difference of around 46 percent in its average sales and asking prices. This is the largest pricing discrepancy amongst the 18 condo developments represented in the Brickell Condo Index. This just shows me that asking prices at Emerald at Brickell still have a ways to come down before reaching its market clearing value. The Club at Brickell Bay had its average sales price drop around 39 percent, Skyline on Brickell around 25.5 percent, The Palace about 25 percent and Villa Regina around 25 percent. Only Latitude on the River and Santa Maria experienced an uptick in average sales prices since the last Brickell Condo Index update.
This the first month where we saw average sales prices for a Brickell condo building fall below $200 per square foot. Vue at Brickell is now sitting on an average sales price of around $189 per square foot, calculated from the 17 closed sales in the MLS that it has had within the past six months. A look at the listings currently available at Vue at Brickell indicates that prices will continue to fall, as over 30 listings have an asking price below the $189 per square foot average. In fact, four listings are currently asking less than $150 per square foot. It goes without saying that Vue at Brickell will likely hit the $150 average sales mark before any of the other condo developments in the Brickell Condo Index.
Another insight I made while pondering the figures for this month’s Brickell Condo Index is that Santa Maria is alive and kicking. It looks healthy despite the slow down in the real estate market. Its average listing and sales prices have both gone up within the past four months. It has also had 8 closed sales within the past six months. That may not seem like a lot but, with only 174 total condos, Santa Maria is not a huge mega-building with 500-plus units like we often see nowadays. It also has the most realistic asking prices. The discrepancy in asking and sales prices is 15.81 percent, the lowest amongst the 18 condo developments. Couple all that with the fact that the currently available listings at Santa Maria only represent around 8 percent of its possible inventory and I’m saying that it’s good to see that there’s still one stand-up condo development amongst the 18.
Villa Regina Condo Amenities Video
About a month ago, I shared with everyone a 5 bedroom/5 bath condo listing I received at Villa Regina. Since that time, I’ve worked with a professional videographer to get footage of the building and the condo unit. I’m hoping that I’ll be able to share with everyone a new condo building video every month. My goal is to have a professionally-made video library of all of the major condo buildings in Miami within 2-3 years. I think this will be a great resource for locals and nonlocals alike.
Villa Regina Amenities and Common Areas:
Here’s the video, with a narrative voiceover, of the 5 bedroom/5 bath condo with 4,100 interior square feet listed for $1,499,900 at Villa Regina:
Nonlocal buyers represent a large share of the percentage of people buying in Miami right now. My hope is that these videos will help these types of buyers to familiarize themselves with the various condo buildings throughout Miami.
Beautiful 5 Bedroom Condo at Villa Regina with 4,100 Square Feet – $1,499,900
Five-bedroom condos in Brickell are very rare. In fact, at this time, there are only two other condos in Brickell that are listed on the MLS with that many bedrooms. Just last week, I listed the best priced 5 bedroom condo in Brickell in a building called Villa Regina. The new listing is attractively priced at $1,499,900. The next best priced 5 bedroom residence is listed for over $1M more.
If size, quality, and location are what you need, then look no further. The 5 bedroom listing at Villa Regina spans 4,100 square feet (380.9 square meters), has a total of 15 rooms, 5 full bathrooms, comes with 3 parking spaces, has 4 terraces with gorgeous bay and city views and has been tastefully remodeled. The kitchen has new granite countertops and stainless steel appliances with custom cabinetry. The air conditioning system was also replaced 3 months ago and the condo has impact resistance windows and shutters.
The amenities at Villa Regina include: 24-hour full-service concierge and security, swimming pool, fitness center, his and her spas, barbecue area and 4 grand party rooms. Villa Regina is located directly on Biscayne Bay and is one of the few condo buildings in Brickell with its own private marina.
Contact me today if you’d like to take a look at this 5 bedroom condo at Villa Regina.
Brickell Condo Index – April 2008
The Brickell Condo Index is back! I was shocked to see that it’s been six months since I last provided an update to what used to be a monthly report. Those who’ve been around long enough to remember those updates would probably agree, however, that very little change in the market was seen on a month-to-month basis. In this report, you’ll definitely see that prices in some Brickell condo buildings have changed quite a bit within the past six months. Ideally, from this point forward, I’d like to provide a Brickell Condo Index update every three months.
Most of the following data was collected last week on April 22, 2008. The pending sales information towards the bottom of the post was collected today.
I finally decided to include Latitude on the River in the Brickell Condo Index. In November, the average price per square foot of available condos in the Brickell Condo Index listed in the MLS was $512.14. Six months later, asking prices have dropped 6.52 percent to an average of $478.76 per square foot. The drop would have been 5.64 percent had Latitude on the River not been added to the index. A few of the following condo buildings, however, have had huge reductions in their average asking prices. I’ll discuss these in more detail towards the end of the post.
Average price per square foot of units currently listed on the MLS:
The average price of Brickell condos sold over the past six months has dropped 13.20 percent to $410.38 per square foot from November’s average of $472.80. The drop would have been 11.75 percent had Latitude on the River not been included in this month’s update.
Average price per square foot of condos sold in the MLS within the past six months:
- Atlantis – 2025 Brickell Ave | 33129 | $249.28
- Brickell on the River – 31 SE 5 St | 33131 | N/A
- Bristol Tower – 2127 Brickell Ave | 33129 | $442.37
- Emerald at Brickell – 218 SE 14 St | 33131 | $409.11
- Four Seasons Residences – 1425 Brickell Ave | 33131 | $913.08
- Imperial at Brickell – 1627 Brickell Ave | 33129 | N/A
- Jade – 1331 Brickell Bay Dr | 33131 | $544.02
- Latitude on the River – 185 SW 7 St | 33130 | $314.35
- Neo Vertika – 690 SW 1 Ct | 33130 | $322.13
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $324.77
- Santa Maria – 1643 Brickell Ave | 33129 | $595.43
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $397.72
- Solaris at Brickell – 186 SE 12 Ter | 33131 | N/A
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $367.44
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $386.25
- The Palace – 1541 Brickell Ave | 33129 | $320.09
- Villa Regina – 1581 Brickell Ave | 33129 | $356.79
- Vue at Brickell – 1250 S Miami Ave | 33131 | $212.82
Below you will find some additional statistics:
As in the past, the first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, expressed as a percentage. An “N/A” is found next to Brickell on the River, Imperial at Brickell and Solaris at Brickell since this percentage could not be computed as each building failed to have a closed sale within the past six months through the MLS, and thus did not have an average price per square foot for condos sold.
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 condo developments that have active listings that represent less than 10 percent of the the overall units in the building. In my opinion, this often demonstrates a sound condo building. The ones highlighted in red reveal those condo developments that have active listings that represent over 20 percent of the overall units in the building. There’s definitely underlying risk in buying condos in these buildings and I’d only advise buying within one of these condo buildings if the price justified the risk. The condo developments with active listings less than 10 percent 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 six months. There are a total of 58 total pending sales in the 18 condo buildings now represented in the Brickell Condo Index. In November, there were a total of 49 pending sales at the time. I was quite surprised by the large number of pending sales at The Club at Brickell Bay, Jade and Solaris at Brickell. It looks like buyers are finally starting to step in and place some of the condo foreclosures in these buildings under contract.
The sixth column show you the difference in the average list prices from this month’s and November’s, expressed a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. Vue at Brickell saw asking prices drop about 25 percent, The Club at Brickell Bay around 19 percent, Jade around 16 percent and Solaris at Brickell around 11.5 percent. The seventh column reveals the difference in average sales prices from this month’s and November’s, expressed as a percentage. The condo buildings hardest hit with mortgage fraud saw prices drop in half, in a few cases, as the fraud has ceased and the supply of foreclosures has grown. The average price per square foot for condos sold at Vue at Brickell within the past six months has dropped almost 48 percent. A few apparent fraudulent transactions included in the November average have fallen off. The Club at Brickell Bay’s average dropped a little over 46 percent, Solar at Brickell’s dropped about 33 percent and Jade fell around 25 percent. Even One Miami took a big hit with a drop of around 23.5 percent.
Brickell Condo Index – November 2007
The following data was collected on November 18, 2007. It took me a while to get everything up due to the holiday and work. I made a correction to October’s data. The average price per square foot of closed sales over the previous six months at Vue at Brickell was previously stated at $364.32. The correct figure should have been $469.93. The correction has been made and the overall average for closed sales in Brickell was adjusted to $481.69 instead of $475.16.
The average price per square foot of condos listed has once again dropped this month to $512.14 from last month’s figure of $518.91. The weight-adjusted average also dropped to $509.24 per square foot from last month’s figure of $521.29.
Average price per square foot of units currently listed on the MLS:
Someone recently commented that the average price per square foot of closed sales statistic doesn’t provide much insight due to the lack of activity in the Miami real estate market. This is quite true. List prices need to come down more in order for buyers to be enticed into buying. The condos that have been selling lately are the ones that are aggressively priced. Once each building has at least 5 or more closed sales then the average will begin to show more insight. Below you will see the total number of closings within the past six months in each condo development:
As you can see all of the buildings except One Miami and Neo Vertika have 4 or less closings. The lack of closed sales doesn’t make for an informative average. Nonetheless, I will continue to provide this statistic in hopes that the peak-season months will bring in more closed sales. I have definitely seen more interest within the past couple of weeks. The average price of condos sold over the past six months has gone down to $472.80 from last month’s figure of $481.69. Emerald at Brickell hasn’t had any closed sales within the past six months. The drop would have been less if the average for Emerald at Brickell would have remained the same at $523.78. If that were the case then the average price of condos sold over the past six months in Brickell would have been $475.80.
Average price per square foot of condos sold in the MLS within the past six months:
- Atlantis – 2025 Brickell Ave | 33129 | $283.10
- Brickell on the River – 31 SE 5 St | 33131 | $400.00
- Bristol Tower – 2127 Brickell Ave | 33129 | $425.96
- Emerald at Brickell – 218 SE 14 St | 33131 | N/A
- Four Seasons Residences – 1425 Brickell Ave | 33131 | $680.57
- Imperial at Brickell – 1627 Brickell Ave | 33129 | $331.99
- Jade – 1331 Brickell Bay Dr | 33131 | $723.60
- Neo Vertika – 690 SW 1 Ct | 33130 | $332.27
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $424.36
- Santa Maria – 1643 Brickell Ave | 33129 | $682.23
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $391.91
- Solaris at Brickell – 186 SE 12 Ter | 33131 | $422.66
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $684.44
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $575.90
- The Palace – 1541 Brickell Ave | 33129 | $395.54
- Villa Regina – 1581 Brickell Ave | 33129 | $403.39
- Vue at Brickell – 1250 S Miami Ave | 33131 | $406.92
Below you will find some additional statistics:
As with last month, the first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, expressed as a percentage. The Club at Brickell Bay, The Mark on Brickell and The Palace are the only developments that have a higher average sales price than list price. The former two have questionable closed sales included in the six month average.
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. I find this to be a 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. I would stay away from these condo developments and others that approach the 20 percent mark. The condo developments with active listings less than 10 percent 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 month. The number of pending sales has dropped this month to 49 from last month’s figure of 51. The number of closed sales within the past month has remained the same at 7, which is still the lowest that I’ve seen in Brickell within one month since I’ve been tracking this statistic.
The sixth column show you the difference in the average list prices from this month’s and last month’s, expressed a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. As you can see, listings at Solaris at Brickell had an increase of 7.47 percent within the past month. Much of this increase is attributed to a new listing that is listed at $904 per square foot! What are they thinking? What I find to be particularly funny is that it says “Owner Hardly Motivated” in the broker remarks. Why even list it then? It is a one bedroom with 730 square feet listed for $660,000. I’m going to keep my eye on this one because I wouldn’t be surprised to see it under contract by the wrong type of buyer.
The seventh column reveals the difference in average sales prices from this month’s and last month’s, expressed as a percentage. The 15.49 percent price decrease at Skyline on Brickell is mainly attributed to a closed sale at a high price per square foot that dropped off the average. The large 27.41 percent price increase at Villa Regina is legitimate. There have been two closed sales in the building within the past month and one of them was a 3,060 square foot 3 bedroom/3.5 bath condo with a direct bay view that sold for $1,480,000, or $484 per square foot.
I think next month we’ll see more activity. I did notice that Jade had 2 closed sales on November 20, 2007. Those transactions will appear on next month’s Brickell Condo Index.
Will History Repeat Itself in Miami?
Earlier this week, I showed a few condos at Villa Regina to a lady who has owned a unit in the building since 1983. She and her husband purchased their condo in November of that year. She told me that for the first year and a half to two years only 25 condos were owned of the 208 total units. The bust had happened and nobody wanted to buy. The developer, Nicholas Morley, eventually went under and the building was later taken over by the FDIC. Nicholas Morley, was a big-time developer back then who was the equivalent of today’s Jorge Perez or Ugo Columbo.
She said that nobody would touch Villa Regina with a ten-foot pole for the first two years after she purchased because the building was either in receivership, meaning that it was undergoing foreclosure proceedings, or it had already been foreclosed upon. As a result, the common areas were under-maintained. The building didn’t have any security, air conditioning in the hallways, a concierge in the lobby nor valet service.
Before the building went into receivership, she, her husband and the condo owners who represented the other 24 units met each month to resolve the problems. They wanted answers. No, in fact, they wanted action. Each month, the condo board sent requests to the developer stating that they themselves would pay to have the building maintained 100 percent. The developer never answered their pleas.
After Villa Regina was foreclosed upon, there were rumors that Nicholas Morley wished to acquire the building from the FDIC for 10 cents on the dollar. The condo board sent letters to the FDIC to prevent this from happening. Nicholas Morley had made them suffer long enough and they didn’t wish to take any chances.
An investment group stepped up to the plate and purchased the remaining units at Villa Regina from the FDIC, a few years after she and her husband had purchased their condo. She stated that “almost overnight, there was interest in buying condos at Villa Regina”. I asked her for how much the investment group purchased the remaining units. She didn’t know but guessed that it was around 50 cents on the dollar. The level of maintenance that was initially promised had finally been restored. People wanted in because the dark cloud that hung over Villa Regina had been lifted. The investment group was then able to sell the remaining units for a profit.
It was especially interesting to hear, from the above source, that the building fell into the hands of the FDIC. This indicates to me that the bank which loaned the money to the developer also went under as well. I don’t expect buildings in Miami on the horizon, however, to fall into the hands of the FDIC for too long, if at all. The world is too widely connected nowadays. Information exchanges hands at such a rapid pace. Investment groups will act much faster in today’s era than that of the 1980s. If a bank yells, “Help!”, several investment groups will be there to say, “Help has arrived, but how bad do you need it?”.
There’s been talk that the current boom and bust in Miami is worse than had existed in the early 1980s. I’ve advised my readers time and again to watch out for the new digs. If you feel like buying, then look for those buildings that were built prior to 2000. They have much more stability because most units in those buildings are owner-occupied. Investors/speculators flocked to the new buildings and those that were yet to be built. The possibility of the above occurring in a new condo development in Miami is likely within the next couple of years. That’s why I’ve been keeping a close eye on each new development’s ability to close units. If you are interested in buying in a new development then you must be aware of the default rate that is occurring there. Those with a default rate higher than 30 percent, in my opinion, will be ones to stay away from until much of this excess supply is purchased.
The oversupply problem in Miami does indeed currently exist and is worse than that which existed in the early 1980s. However, the level of demand that currently exists far outpaces that of which was evident in that decade. Miami is now on the map. Miami now has world-wide attention. The strength of foreign currencies relative to the U.S. Dollar has made it more alluring for foreigners to buy here. It has also become a mecca for second-home buyers, retirees and those who wish to live in tropical climes throughout the year.
The opening lines of the movie Armageddon says, “It happened before. It will happen again. It’s just a question of when”. It will be interesting to see if history repeats itself in Miami and, if so, then to what extent.
Brickell Condo Index – October 2007
As I mentioned in a previous post, The Sail on Brickell will no longer be included in the Brickell Condo Index. I also made a change to the way that the statistics in the third section of the index are presented. It should now be much easier to make sense of the monthly figures. This came as a suggestion from a reader (Thank you!). My comments on this month’s numbers are also found towards the bottom of this post.
The average price per square foot of condos listed has dropped this month to $518.91 from last month’s figure of $525.88. Last month, The Sail on Brickell had an average list price of $507.11 per square foot, so the drop would have been greater had it been included this month and its average remained around the same. The weight-adjusted average also dropped to $521.29 per square foot from last month’s figure of $530.15.
Average price per square foot of units currently listed on the MLS:
The average price per square foot of condos sold over the past six months actually went up this month to $481.69 from last month’s figure of $467.47. The increase would have been less had The Sail on Brickell been included. Last month, it had an average of $386.41 per square foot. If its statistic remained the same, the average would have been $476.39 per square foot. Much of the increase is also attributed to The Mark on Brickell which I will discuss below. The weight-adjusted average went up to $495.31 per square foot from last month’s average of $486.30.
Average price per square foot of Brickell condos sold in the MLS within the past six months:
- Atlantis on Brickell – 2025 Brickell Ave | 33129 | $298.11
- Brickell on the River North – 31 SE 5 St | 33131 | $415.74
- Bristol Tower – 2127 Brickell Ave | 33129 | $440.18
- Emerald at Brickell – 218 SE 14 St | 33131 | $523.78
- Four Seasons Residences – 1425 Brickell Ave | 33131 | $675.30
- Imperial at Brickell – 1627 Brickell Ave | 33129 | $331.99
- Jade Brickell – 1331 Brickell Bay Dr | 33131 | $723.60
- Neo Vertika – 690 SW 1 Ct | 33130 | $329.67
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $430.12
- Santa Maria – 1643 Brickell Ave | 33129 | $672.22
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $463.75
- Solaris at Brickell – 186 SE 12 Ter | 33131 | $454.32
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $660.39
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $589.06
- The Palace – 1541 Brickell Ave | 33129 | $388.54
- Villa Regina – 1581 Brickell Ave | 33129 | $316.62
- Vue at Brickell – 1250 S Miami Ave | 33131 | $475.30
The numbers below are a bit difficult to read but if you save and open the picture file it should make it easier.
The first column to the right of each condo development’s name is the difference in the average sales price and list price for this month, found above, expressed as a percentage. You will notice that Emerald at Brickell, The Club at Brickell Bay, The Mark on Brickell, The Palace and Vue at Brickell are the only developments that have 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. I find this to be a 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. This is a very unhealthy figure and should act as a warning sign. Is it coincidence that Jade, The Club at Brickell Bay and Vue at Brickell, which have all been riddled by mortgage fraud appear in red? I think not! I think this statistic is highly important. It provides great insight as to which condo developments will be next to have price cuts and those that may actually go up in price in the coming months. A leading indicator, if you may.
The fourth column shows the number of pending sales while the fifth column displays the number of closed sales within the past month. As I mentioned, last month a large portion of the pending sales at The Club at Brickell Bay are very old. Only three of them have been pending for five months or less. It is good to see, however, that each development has at least one pending sale. The number of closed sales within the past month has dropped to seven, which is its lowest point since I began tracking this statistic. Not good…not good at all!
The sixth column show you the difference in the average list prices from this month’s and last month’s, expressed a percentage. Those highlighted in red reveal those condo developments which had a drop in their average list price while those highlighted in green show those that had an increase. As you see, The Vue at Brickell had a price drop for condos listed of 8.57 percent. Much of this is attributed to the ever-growing number of short-sale and foreclosure units in the building. In fact, I have counted 24 units in the MLS that fit this bill. That represents 7.43 percent of the overall building. Yikes!
The seventh column reveals the difference in average sales prices from this month’s and last month’s expressed as a percentage. The 17.54 percent price increase over last month’s statistic at The Mark on Brickell jumped out at me. Of course, I had to investigate. The good news is that I didn’t find any fraudulent transactions that have occurred within the last month. Thank God! The bad news, however, is that I did discover two transactions that closed in June that I didn’t notice before that appear to be fraudulent. You be the judge! A 2 bedroom/2 bath with 1,200 square feet that was listed at $890,000 closed for $845,000, or $704 per square foot, on June 30, 2007. Another 2 bedroom/2 bath also with 1,200 square feet that was listed for $850,000 closed for $840,000, or $700 per square foot, on June 6, 2007. In each case, the listing agent was also the buyer’s agent. In the second case, the unit previously closed in January of this year for a price of $560,000. Looks like fraud, smells like fraud…what do you think? The average price increase also became more pronounced at The Mark on Brickell because a few other sales that sold in the $300’s and $400’s per square foot fell off the average.
The large drop in prices, over the past month for condos sold over the previous six months, at Neo Vertika were mainly a result of the unit that my client closed on a few weeks ago for $242 per square foot.
Miami Condo Index – Brickell – September 2007
I received an email last week from a potential investor asking me if Miami is now safer than the “Miami Vice days” that he saw on TV. Indeed, the streets of Miami are much safer than they were 20 years ago, but the corruption that infested the city back then is still prevalent now.
Another month, another fraudulent transaction. I guess nobody cares. As I mentioned last month, the rumors are out there that a government agency is on the lookout for such activity but I’ve begun to lose hope that these rumors hold much water. If these rumors are true, then shame on them for allowing such activity to continue, and allowing the reputation of this city to be equated to that of which was prevalent in the 1980s. This past month, I’ve heard that an FBI agent is living at Vue at Brickell and Jade at Brickell Bay. I wouldn’t be surprised if one lives at The Club at Brickell Bay as well.
The continuance of fraudulent activity in Brickell has sickened me. The sooner that the Miami Herald, or some other major newspaper, goes public with this story, the better. The fraudulent activity just needs to stop. It is doing nobody any good to let the fraudulent activity prevail, except those who are facilitating it.
Sorry, but I just had to rant and rave for a moment. Now, back to our regularly scheduled program (but I’ll continue to rant and rave towards the end when I disclose the latest fraudulent transaction).
The average price per square foot of condos listed in the 18 Brickell buildings included in the Brickell Condo Index has dropped to $525.88 from last month’s average price per square foot of $529.05. The weight-adjusted average has also dropped to $530.15 versus last month’s weight-adjusted average price per square foot of $537.67. Both figures are below those that were calculated in July as well.
Average price per square foot of units currently listed on the MLS:
The average price of condos sold over the past six months has dropped to $467.47 per square foot versus last month’s figure of $471.94 per square foot. The weight-adjusted average has also dropped to $486.30 per square foot from last month’s weight-adjusted average of $498.36 per square foot. Much of the decrease is due to the a sizable drop in the averages at The Club at Brickell Bay and Vue at Brickell. Both buildings had fraudulent transactions that fell off the six month average.
The Sail at Brickell had yet another fraudulent transaction this past month. It was conducted by the same broker that conducted the fraudulent transaction at The Sail at Brickell that I spoke of in July. Once again, the broker acted as the listing agent and the selling agent. He must have some luck! He was also able to close the deal the same day that the deal went pending. Imagine that! This guy works miracles. He was able to sell a 2 bedroom/2 bath at The Sail on Brickell for $670,000. Well at least he was able to negotiate the price down $10,000 for his buyer. He has some smooth negotiating skills. He must also have some great persuasion skills because nobody in their right mind would pay $670,000 for a 2 bedroom at The Sail on Brickell.
Average price per square foot of condos sold in the past 6 months:
- Atlantis on Brickell – 2025 Brickell Ave | 33129 | $298.11
- Brickell on the River North – 31 SE 5 St | 33131 | $409.44
- Bristol Tower – 2127 Brickell Ave | 33129 | $440.18
- Emerald at Brickell – 218 SE 14 St | 33131 | $523.78
- Four Seasons Residences – 1425 Brickell Ave | 33131 | $720.15
- Imperial at Brickell – 1627 Brickell Ave | 33129 | $304.56
- Jade at Brickell Bay – 1331 Brickell Bay Dr | 33131 | $690.18
- Neo Vertika – 690 SW 1 Ct | 33130 | $361.99
- One Miami – 325 & 335 S Biscayne Blvd | 33131 | $446.06
- Sail on Brickell – 170 SE 14 St | 33131 | $386.41
- Santa Maria – 1643 Brickell Ave | 33129 | $618.50
- Skyline on Brickell – 2101 Brickell Ave | 33129 | $451.29
- Solaris at Brickell – 186 SE 12 Ter | 33131 | $457.45
- The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $660.39
- The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $501.16
- The Palace – 1541 Brickell Ave | 33129 | $363.32
- Villa Regina – 1581 Brickell Ave | 33129 | $316.62
- Vue at Brickell – 1250 S Miami Ave | 33131 | $464.83
This is the first month that a development has had a price per square foot under $300 for condos sold over the previous six months since I began this index. Atlantis on Brickell broke through this barrier with an average price per square foot of $298.11. This figure for Atlantis on Brickell will likely continue to decline as a bank-owned listing has remained on the market for quite some time and will likely sell for around $200 per square foot.
Below you will find the new statistics that I have included in this month’s Brickell Condo Index. The first number directly to the right of each development name represents the total number of active listings. The second number, in parentheses, is the number of currently listed condos expressed as a percentage of the total number of condos in the development. The third number represents the number of pending sales while the fourth is the number of closed sales within the past month.
- Atlantis on Brickell – 13 (13.54%) | 1 | 1
- Brickell on the River North– 59 (18.21%) | 4 | 0
- Bristol Tower – 19 (12.93%) | 3 | 1
- Emerald at Brickell – 34 (23.94%) | 1 | 0
- Four Seasons Residences – 18 (6.67%) | 3 | 0
- Imperial at Brickell – 15 (9.32%) | 2 | 0
- Jade at Brickell Bay – 76 (23.31%) | 6 | 1
- Neo Vertika – 78 (17.61%) | 7 | 0
- One Miami – 165 (18.42%) | 6 | 2
- Sail on Brickell – 64 (42.11%) | 2 | 1
- Santa Maria – 10 (5.75%) | 1 | 1
- Skyline on Brickell – 54 (15.00%) | 2 | 1
- Solaris at Brickell – 21 (15.22%) | 2 | 1
- The Club at Brickell Bay – 145 (22.55%) | 11 | 1
- The Mark on Brickell – 43 (11.62%) | 0 | 1
- The Palace – 25 (9.84%) | 1 | 0
- Villa Regina – 20 (9.62%) | 0 | 0
- Vue at Brickell – 62 (19.20%) | 1 | 0
Two numbers jumped out at me when reviewing this month’s findings: the 42.11% of available listings at The Sail on Brickell and the 11 pending sales at The Club at Brickell Bay.
I knew that prices were high and unjustified at The Sail on Brickell with mortgage fraud having much to do with it, but I never would have imagined that over 40 percent of the building would be available for sale. That’s incredible! However, a look at the current list prices should make those who have visited this building realize that the prices at The Sail on Brickell are ridiculous. Of the 18 buildings included in the Brickell Condo Index, I would rank The Sail at Brickell at the bottom. There are no views and the common areas and amenities are below Brickell standards. The developer, Renzi Development, recently announced that they plan to go forth with their Beacon at Brickell Village development. I sure hope they have second thoughts. The Sail on Brickell will eventually sell for around $250 per square foot (and that’s being generous). If I were a condo owner who is motivated to sell at The Sail on Brickell then I would be priced at the front of the large pack.
When I saw the 11 pending sales at The Club at Brickell Bay I was quite surprised. At first I thought it was my lack of REM sleep setting in. Once I realized that it wasn’t, I had to investigate further. What I found made this number a complete sham. Of the 11 pending sales, 9 of them have been pending since 2005 and 2006. What the….? It usually takes two months, maybe three months tops, to take a pending sale to the closing table. The other two pending sales have been pending since January and March of 2007. Something just isn’t right. Most likely the sales prices couldn’t be justified. Take 6 months, 12, months, 36 months and the prices still won’t be justified. These transactions should be reclassified as “hopeless” rather than pending. A 1 bedroom/1 bath at The Club at Brickell Bay will be going up for auction tomorrow, September 19, 2007 at 3pm. That will give everyone a good indication as to the fate of prices at The Club at Brickell Bay. You can be sure that I’ll report about it within the next couple of days.
So there you have it, that is the latest Brickell Condo Index. The good news is that there were 11 closed sales within the past month versus a total of eight closed sales the month prior to last. There were a total of nine closed sales the month prior to that.
There are a total of 42 pending sales disregarding the 11 at The Club at Brickell Bay since those have been discredited. As long as half of those transactions actually close, then there should be about 10-11 closed sales next month. I guess we’ll just have to wait and see. I’m praying that we won’t have another fraudulent transaction then. If we do, and you thought I ranted and raved now, just wait until next month.
Villa Regina – 3 Bedroom/2 Bath – Motivated to Sell Now!!!
A few days ago, I acquired a great listing for a 3 bedroom/2 bath condo with direct bay views from the 19th floor at Villa Regina. I normally don’t discuss my listings on this blog. However, due to the motivation of the seller, I decided that this could be a good opportunity for a buyer looking to buy a beautiful condo at Villa Regina at a great price.
The owners of the condo recently accepted a job offer in another state and need to sell right away. It would make their lives much easier knowing that their Miami residence is sold so they can concentrate on their new move. They are planning to relocate within 60 days.
The listing agreement was signed on Monday and I input it into the MLS later that night. We listed it for $685,000. At $685,000, the condo is well priced, given the competition in the building and the fact that the owner is willing to pay two years worth of monthly maintenance fees. This amounts to a savings of $27,134.40 over the following 24 months after closing. The next best priced condo in this line is priced at $699,000 and is located 11 floors below the condo that I have listed. That unit did not convert its space to three bedrooms, nor does it offer any type of buyer incentive.
Okay, okay…so a $14,000 ($41,134.40 with the two years worth of monthly maintenance fees paid) difference in price doesn’t make for an outstanding deal. How would it sound though if a buyer could acquire this property for $600,000 even? Sound more enticing? The owners are so motivated to have their condo under contract within the next 30 days that they are willing to accept an offer that would net them $600,000 before, not after, commissions.
This newly listed condo at Villa Regina has 1,895 square feet of interior space and two large balconies. It was formerly a 2 bedroom/2 bath but was converted by the current owners to a 3 bedroom soon after they purchased the condo in 2002. It is the only currently listed condo at Villa Regina to be converted into a 3 bedroom. I’ve seen a lot of condos at Villa Regina and this one is a fantastic buy. The condo has hard wood floors throughout all living areas except both bathrooms and the master bedroom. Both bathrooms have marble flooring while the master bedroom has Berber carpet. The condo also have a dry bar with wine cooler, upgraded kitchen cabinetry and appliances, upgraded washer/dryer and upgraded master bath and second bath. The furniture that currently resides in the condo is negotiable.
I received a phone call from a local Realtor Tuesday evening to find out if she could show the condo Wednesday at 5pm. She doesn’t know that my client is motivated to the point to accept a $600,000 offer. The fact that I received a showing appointment within 24 hours of it being listed at $685,000 goes to show me that the condo is well priced. At $600,00, it is priced phenomenally.
My clients hope to have their condo under contract within the next 30 days. For that peace of mind, they are willing to accept a much lower price. They realize that an executed contract normally takes 30-60 days to close so they are only willing accept a $600,000 offer if it is presented within the next 30 days.
Villa Regina recently had a special assessment to modernize its lobby, hallways, marina, fitness center, club room and landscaping. The special assessment has been paid in full by the current owner.
I am encouraging all buyers who have an interest in purchasing a 3 bedroom on Brickell Avenue to take a look at this condo. I dare you to find a better 3 bedroom condo in a building that resides on Brickell Avenue for $600,000 or less. I constantly search the MLS for great deals and I just don’t think you’ll find a better deal. Contact me if you would like to take a look at this condo in person.
