The Brickell Financial District is dominated by office and residential towers, and construction in the area is moving steadily west. Zip code area 33131 runs from SE 15th Road to SE 1st Street just north of the Miami River, and east of South Miami Avenue. Zip code area 33130 continues west of South Miami Avenue, along SW 11 Street to SW 12 Avenue into West Brickell and East Little Havana, but the bulk of the condominium resale data remains east of I-95. As of the end of May, there were 2,006 residential condominiums listed as available on the Multiple Listing Service (MLS). New listings coming on to the market have remained steady over the last two years, but closed sales are “at their lowest level compared to May of 2015 and 2014” and running 26.7% behind last year’s year-to-date sales. This is, of course, causing total inventory to rise – 13.1% over May 2015. May 2016 “Months Supply of Inventory” (MSI) is at an alarming 32.4 months, while “price per square foot” has dipped slightly 8.5% from May of last year. There is no question that the Brickell Financial District residential condominium market is in transition to a “buyer’s market”, but don’t expect a rapid reduction in sales prices any time soon. The May 2016 “Days on Market” (DOM) numbers are relatively steady at 4.5 months which means that properly priced condominiums are still selling. And to keep it all in perspective during this adjustment, “price per square foot” has gone up 73.5% compared to 2008/2009.
May property sales were 62, down from 108 in May of 2015 and -3.1% lower than the 64 sales last month. May 2016 sales were at their lowest level compared to May of 2015 and 2014. May YTD sales of 319 are running -26.7% behind last year’s year-to-date sales of 435.
The median sales price in May was $347,500, down -11.2% from $391,250 in May of 2015 and down -14.7% from $407,500 last month. The average sales price in May was $421,875, down -29.6% from $599,487 in May of 2015 and down -12.4% from $481,592 last month. May 2016 ASP was at the lowest level compared to May of 2015 and 2014.
Inventory & MSI
The total inventory of properties available for sale as of May was 2,006, up 0.4% from 1,998 last month and up 13.1% from 1,773 in May of last year. May 2016 Inventory was at highest level compared to May of 2015 and 2014.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The May 2016 MSI of 32.4 months was at its highest level compared with May of 2015 and 2014.
The average Days On Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM tends to indicate a move towards more of a buyer’s market, a downward trend a move towards more of a seller’s market. The DOM for May was 133, up from 131 days last month and up from 127 days in May of last year. The May 2016 DOM was at its highest level compared with May of 2015 and 2014.
Selling Price per Square Foot
The selling price per square foot is a great indicator for the direction of property values. Since median sales price and average sales price can be impacted by the ‘mix’ of high or low end properties in the market, the selling price per square foot is a more normalized indicator on the direction of property values. The May 2016 selling price per square foot of $396 was up 0.3% from $395 last month and down -8.5% from $433 in May of last year.
Selling Price vs Listing Price
The selling price vs listing price reveals the average amount that sellers are agreeing to come down from their list price. The lower the ratio is below 100% the more of a buyer’s market exists, a ratio at or above 100% indicates more of a seller’s market. The May 2016 selling price vs list price of 94.3% was down from 94.4% last month and down from 95.6% in May of last year.
Inventory / New Listings / Sales
This last view of the market combines monthly inventory of properties for sale along with new listings and sales. The graph shows the basic annual seasonality of the market as well as the relationship between these items. The number of new listings in May 2016 was 277, down -15.8% from 329 last month and equal to 277 in May of last year.
For the full .pdf report with graphics, click here to download: 2016-May Brickell Financial District 33130 33131 Market Trends Report