Thursday, March 25, 2010

March preview

Temperatures have finally climbed back into the pleasant range with high 70s predicted every day for the next week. That trend and a southerly wind should finally bring the cobia run which has been delayed as long this year as anyone can remember. The crowds in town are thick as March is the peak of the spring season but that will change rapidly after Easter as the snowbirds begin their northerly migration in force and students head back to school.

As of this morning there are 87 short sales and foreclosures with offers in negotiation with the lenders in Cocoa Beach and Cape Canaveral. There have been 35 closed distressed sales in the two cities since January 1. The MLS shows 95 active short sales this morning at prices between $22,000 and $699,000 and 40 foreclosed properties offered at prices from $20,000 to $599,900.

We've had 29 condos and townhomes closed so far in March and four single family homes, two of those direct ocean houses for $875,000 and $960,000. Five of the condo sales were for less than $40,000 and only one was for more than $285,000, a 2nd floor Meridian that sold for $550,000 or $110,000 less than it was bought for in 2007.

Sales of note included;

The nicest unit in Cape Winds, a totally remodeled 2nd floor NE corner, 2/2 went for $250,000.

An 8th floor direct ocean 2/2 next door at Canaveral Towers also sold for $250,000.

A top floor (5th) Puerto del Rio 3/2 closed for $189,000. It sold new four years ago for $253,500.

A direct river Pebble Cove 1st floor 3/2 went for $135,000.

A very nice south Cocoa Beach Sutton Place 2/2 corner with a peek of the ocean sold for $130,000.

Inventory has increased slightly this month. For anyone looking for a special waterfront house, the best located (my opinion) single-family riverfront house in Cocoa Beach has come on the market this month. It is a walled and gated compound sitting on five lots with 132' of open Banana River in south Cocoa Beach with exotic mature tropical landscaping. The river is 3.5 miles wide out the back door and the ocean is right across the street.

MLS inventory Mar 25 , 2010 Cocoa Beach & Cape Canaveral

Condos, all prices_____610
over $500,000_________77
Single family homes___133
over $500,000_________43

If it suddenly ended tomorrow
I could somehow adjust to the fall.

Good times and riches and son of a bitches

I've seen more than I can recall.

__________Jimmy Buffett


  1. By purchasing mortgage backed securities the Federal Reserve has kept mortgage rates low.Around 5%. This program is going to end this month.Rates will climb to 5.5--6%.Projections for your metro area is for a further decline in home prices of around 15% with a possible price bottom by Q1:2011. Being a good wave of info and a insider for the Cocoa/Canaveral area, do you find this info to be correct. Would it be prudent to wait another year before considering a property buy. I might add that projections show increases in short sales and foreclosures. I would love to be a buyer but----not if I'm going to be upside down on my buy price in the near term. I'm also not in agreement with the stand on HOA fee's. A quick check in our area of the country has found that HOA's have adjusted to the economic times we reside in, though your area, could be different.

  2. tommiefudster says ....
    The biggest component of HOA fees (about 50% of it in many cases) and what makes the HOA fees look high here is the cost of insuring the building. Since the hurricanes of 2004, home insurance rates have skyrocketed, insurers have abandoned the market, and the state is rolling over and playing dead while the insurers rape its citizens. The high cost of homeowners insurance has played a large part in falling FL RE prices. Also keep in mind, if you buy a condo, you may be required to buy condo insurance for the inside of your unit adding another $30-50/month expense.

    I will stick with my guns on interest rates. I don't expect them to rise much during the next 9 months and I don't expect the Fed to stop purchasing mortgages unless they want a depression for certain.

  3. Good points TomFud. Also remember Snowman that the Assoc. is insuring for Replacement Cost New w/o consideration of depreciation (unlike in the cost approach to Market Value that recognizes depreciation).

    While labor costs may have dipped slightly, the cost of materials has generally not declined.

    Cost does not = Value
    -Local RE Appraiser

  4. Points taken--Thanks for the insight