Our latest 2015 South Florida Real Estate Market Report (Trends 2015) differs from prior ONE Sotheby’s International Realty market reports in the analytics models developed in conjunction with IRR Miami.
The 2015 Real Estate Market Report cannot be compared to prior annual or quarterly reports due to changes in the manner in which the metrics were developed for singlefamily and condo developments.
Prior reports on single-family pricing relied on price averages which excluded certain classes of assets based on price thresholds.
The current model abandons the variable minimum price threshold view so that averages over time are not skewed by elimination of transactions beyond a threshold and changes in market conditions do not skew the directionality of the market averages.
The most significant change in methodology is the development of the condominium index. The difficulty in comparing existing condominium project average pricing is that the pricing averages have no control over penthouse units, waterview versus waterfront or age and market position of the product. ONE Sotheby’s International Realty and IRR Miami developed an index of relevant condominium towers that comprise what we consider to be a representative sample of the luxury projects within each submarket. The inclusion of each project was vetted by brokerage and appraisal staff from the respective firms and the sampling reflects the center of the luxury market as it relates to the specific submarket.
Average pricing data was then calculated for each of the relevant years by submarket and unique units were excluded from the sample to avoid skewing the average price indicators. The implementation of project samples also helped control the variability brought about by merely averaging all condo projects within a specific submarket, which when comparing multiple years was less reflective of changing market conditions.
While this methodology only reflects a “sample” of the condo market, the number of projects and number of units in the sample are considered representative of the market. The sample pool of projects does not include pre-construction projects. Therefore, the averages and indicators reflect contemporary existing peers and are not meant to reflect pricing of the newest projects coming to market.This methodology will also allow us future analytical capability to project floor premiums, view premiums and penthouse premiums since the data will be isolated for direct and discrete comparison on these function points. We hope this will clarify directionality of the market and allow for deeper analysis in future reports.
This Trends report is not meant to replace property analysis by a qualified broker and should not be applied to specific properties without consultation with a professional. The Trends Real Estate Market Report in 2015 is meant to inform on broader trends and to facilitate comparison and forecasting at the macro market level.
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