Miami Condo Index – Brickell – July 2007

July 20, 2007

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

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

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

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

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

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

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

• Atlantis on Brickell – 2025 Brickell Ave | 33129 | $337.71
• Brickell on the River North – 31 SE 5 St | 33131 | $466.23
• Bristol Tower – 2127 Brickell Ave | 33129 | $489.63
• Emerald at Brickell – 218 SE 14 St | 33131 | $553.26
• Four Seasons Residences – 1425 Brickell Ave | 33131 | $890.89
• Imperial at Brickell – 1627 Brickell Ave | 33129 | $390.99
• Jade at Brickell Bay – 1331 Brickell Bay Dr | 33131 | $831.96
• Neo Vertika – 690 SW 1 Ct | 33130 | $412.60
• One Miami – 325 & 335 S Biscayne Blvd | 33131 | $470.53
• Sail on Brickell – 170 SE 14 St | 33131 | $488.87
• Santa Maria – 1643 Brickell Ave | 33129 | $686.89
• Skyline on Brickell – 2101 Brickell Ave | 33129 | $492.63
• Solaris at Brickell – 186 SE 12 Ter | 33131 | $501.04
• The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $653.96
• The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $503.21
• The Palace – 1541 Brickell Ave | 33129 | $383.40
• Villa Regina – 1581 Brickell Ave | 33129 | $413.63
• Vue at Brickell – 1250 S Miami Ave | 33131 | $551.70

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

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

Sold-to-Listed Ratio expressed as a percentage:

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