As promised here is the 2010 First Market Values Report for properties in Brickell Key, Miami Florida. In this article i will take a closer look at the performance of one building in particular, Three Tequesta Luxury Condo located at 848 Brickell Key Drive Miami Florida 33142. You may also see the 2010, 1st Quarter Brickell Key Market Analysis and House Value Trends on my other article. Here you will find condos sold in 2010 only in this building until June 1st, 2010, also a comparison on sold condos from previous year 2009, financing used to purchase, median purchase price, days on the market that a condo took to get sold, the reduction percentage amount from listed price to sales price, number of distressed sales, recently sold units within the last 30 days.
Many will think that i must be crazy to list a median average original listed price and then the reduced price and finally the sold price. I wanted to share a mental image of how in today's market a seller must be committed to list, revise the listed price, reduce and then willing to negotiate to get the property sold, many condos not only at Tequesta Point at Brickell Key for instance but around Miami Dade County are getting price revisions more than one time to meet buyer's expectations. Here you see a comparison between 2009 and 2010 (First months) negotiation trends and price reductions at Three Tequesta.
As you can see in 2009 original listed price was very close to the reduced price if any and was more aggressive in negotiating to agree on a sales price.
Looking at the chart you may think that depreciation is playing a role here however its not the case, Three Tequesta looks pretty solid compared to other buildings in the same category and geographical location on Brickell Key. The average size of condos sold during 2009 was 1,694 square feet while condos sold year to date in 2010 have an average living area of 1,293 smaller than the ones sold during 2009. Price per square foot during 2009 was a median of $374.85 compared to 2010 (year to date) a buyer is paying $397.48 per square feet, in essence buyers are paying more per square feet in 2010 than what it paid during 2009 at Three Tequesta in Brickell Key.
What's the average discount rate at Three Tequesta in Brickell Key in today's market?
Statistics show that during 2009 a median original listed price was $780,000 and the median sales price was reduced to $635,000 a 23% discount from original listed price to sales price. The trend on 2010 is very different, sellers with the assistance of Realtors are now understanding better the flow of the market and listing properties more aggressively, so far in 2010 we are seeing a median listed price of $624,000 and a sales price of $562,500 only 11% discount.
Its too early to predict how the market will continue to perform at Three Tequesta in Brickell Key and if a reduction on price will stabilized however due to an inventory of condos on the market today of a total of 26 units with no sold properties during the month of May 2010, also the average days on the market its taking for a condo to get sold is higher than in 2009. It may quite likely be the closer to the same rate of 2009 or greater.
Distressed Sales at Three Tequesta. How Healthy is this building?
Different from many in the area Three Tequesta was free of distressed sales during 2009 with no REO (bank owned sales) or short sales, however we are seeing 1 sold short sale during the first months or 2010, regardless is not an alarming situation considering 25% of Brickell sales are short sales in today's market. The average sales price during 2009 for larger units average 1,694 square feet was $635,000 compare to 2010 first month a median sales price of $562,500 for smaller units in the average of 1,263 square feet which are a less desirable floor-plan at Three Tequesta.
How did buyers purchased condos at Three Tequesta using cash or financing?
Let's take a look at financing availability in this building. During 2009 Three Tequesta had a in influence of cash buyers. Most sold condos used this method 7 out of a total of 11 sales that occurred during 2009. The trend so far in 2010 is completely the opposite, out of 6 sold condos YTD at Three Tequesta purchased using conventional loan financing. This is a great factor considering lenders are not extending credit to most of Brickell Condos since they consider condo financing a high risk and the exit of Mortgage Insurance companies from Miami Dade County in general a Big NO to condo financing by local Banks is very common in the region. Also is in indication that Three Tequesta is a Healthy Building, remember that in order to extend financing lenders gather a lot of key information such as percentage of delinquent condo owners in the building (meaning those owners that are behind association dues or delinquent on mortgage payments) also lenders look at insurance coverage, owner occupancy ratio vs rental ratio and many other factors. Considering this building is mostly second home for many owners in an averge of 75% non owner occupied and leaving 25% of full time residents (let's call it like that) owner occupied condos, the association has managed to handle the building in very good standards thru all this housing crisis. Who is lending at Three Tequesta is now the question which i will discuss in a separate article.
Three Tequesta is a healthy building allowing financing for purchases over $500,000 is a big plus for buyers in today's market. It's also a big selling point even though there is enough inventory and poor sales during the last months Tequesta Three is performing better than last last year with a total of 6 sales in the first quarter of 2010 ending on April 2010. Pricing is a big factor for buyers and is reflected on the purchase price even though larger units are more desirable today.Three Tequesta is a great building to buy and to sell if priced competitively since a buyer's market is still dominating today's real estate market in Brickell Key Miami Florida.
Data obtained from the Southeast MLS System
PHOTOS OF THREE TEQUESTA AND MAP LOCATION