Larry's Take - April 2, 2005

Mortgage rates continued their upward movement this week although the pace has eased to a crawl with the 30 year fixed-rate, national average at 6.04% as reported by Freddie Mac. Market activity in the Cocoa Beach and Cape Canaveral market has slowed as well according to statistics gathered from our MLS. In the last 14 days, 28 condos in all price ranges went under contract, compared to 48 in the preceding 2 week period. Just 5 units over $500,000 have gone under contract during the whole 4 week period. During this same 4 week period, 11 single family homes have been contracted in the same area with prices ranging from $275,000 to $749,000.

Statistics for currently active MLS listings in Cocoa Beach and Cape Canaveral

Single family homes - 45 from $279,900 to $1,700,000 (30 over $499,000)
Condos - 420 from $99,000 to $2,525,000 ( 29 over $1 million and 139 over $500,000)

Of significance in these numbers is the fact that 76 of the condo listings over $500,000 were new listings during March. During the same time that these 76 new listings hit the market, only 5 units in the same price range went under contract. In fact, only 8 condos over $500,000 have gone contingent since Jan. 1, 2005. That is in sharp contrast with the 95 units under $500,000 that were contracted during the same time period. As I’ve stated in recent reports, I think there is opportunity in the under $400,000 condos. I also think that single-family homes, especially waterfront, represent good opportunity for appreciation. The very limited supply of waterfront, single-family homes should continue to propel this segment of our market. As always, these opinions are my own. Do your own due diligence before purchasing any real estate. If you’d like an informed, accredited buyer’s representative to help you find property in Cocoa Beach or Cape Canaveral email me at larry@southcocoabeach.com or call me at 321.917.5786. I know our market and will work hard to find you what you want. You can view some featured properties at beachKulture.com

The numbers I’ve used here were gathered from our MLS. There probably were private sales that happened outside the MLS system that will change these numbers, but the overall trends reflected are accurate.