Thursday, March 09, 2006

South Cocoa Beach gets a low-rise

The graph above shows total monthly closed MLS residential listings since Jan. 2004 on the left side to Feb. 2006 on the right. This includes condos and single-family homes. The numbers from the county show a different trend. Their records reflect all sales not just MLS listed properties and those numbers show no slowdown at all. I believe that can be explained by the number of new condo units that continue to close but were actually contracted as long as 2 years ago. If I were so inclined, I could paint a rosy picture of our market by using all sales rather than MLS-listed properties but that would be cheating, wouldn't it? The activity in our market remains very slow. I'm seeing more and more price reductions and inventory remains at a very high level. Action at Portside Villas resembles a game of chicken. Yesterday one seller reduced a 2 bedroom unit to a remarkable $215,900 while someone else posted a new listing for an identical unit at $269,900. Either someone didn't do their homework or this is a bad case of denial. There is one 1 bedroom unit offered for $179,900. At this level I think these units are a buy. Not a lot of downside risk at that price in a brand new 908 sq.ft. condo a short stroll from the beach. The pressure these sellers are under will ease after they close and there will be less incentive to dump units at these prices.

On a positive note, at least one developer gets the changing trend of our market. While million dollar high-rises go up on both sides with varying degrees of sales success, Tracy Dix has released plans to build 26 Key West style units in south Cocoa Beach with prices ranging from $349,000 to $449,000. Sizes range from 1438 to 1860 sq.ft. and all have a garage. This project will be on the site of the old trailer park tucked between the beach and the Banana River right next to Magnolia Bay. There are no new units even remotely close to these prices in that part of the beach. If you'd like more info about this project give me a shout at 321.917.5786 or email me. Artist rendering of this project below.

Crescent Beach Landings

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