SUPPLY & DEMAND FOR BRICKELL REAL ESTATE
Christina Grate / November 1, 2017Supply versus demand is the key component of the real estate market and Brickell real estate. Investors live by this concept as if it were a mandated law. Supply versus demand is a very simple concept to explain and understand. For instance, if there is a low inventory of condos, but high demand from a vast amount of buyers, then the market is “hot” and prices soar per square foot. However, if there is a large inventory of condos, but a low demand from fewer buyers, then the market slows, as inventory peaks, and prices begin to come down in a scramble to sell more units.
Currently, Brickell real estate is seeing a surplus in units, and not enough buyers to snatch up all the units. Brickell’s skyline is ever-changing, and as the skyline changes and grows, so does the market.
With the increase in inventory and slowing sales, Brickell’s condo market is seeing a shift in supply. Once where there weren’t enough condos to satisfy the purchasing needs of buyers, now there are too many condos on the market. New buildings, such as Brickell House, Brickell City Centre, Nine, SLS, and Brickell Heights have opened; and, more new developments such as Panorama, Brickell Flatiron, and Solitar are slated to open in the near future.
As Miami has a keen fascination with all things brand new and shiny, some of the most recently move-in-ready buildings are seeing a decline in sales, while the preconstruction developments are seeing an increase in sales. These new developments are leading to the overabundance of units for sale in the area.
However, don’t be fooled thinking that you can snatch up amazing units for low prices. Units in established high-end buildings like the Santa Maria, Bristol Tower, and Asia are in high demand because of their amenities and waterfront views.
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