Saturday, July 03, 2010
Cocoa Beach from the east.
The real estate market in Cocoa Beach and Cape Canaveral is not typical. With condos and townhomes making up the majority of sales here, investment and 2nd home purchases dominate the activity. While other more typical markets benefitted from the first time homebuyer credit, we didn't get the boost that some may have expected. Our June sales were right in line with last year's numbers with 39 closed sales of MLS-listed condos and townhomes in the month in the two cities compared to 41 in 2009. That number will likely wind up equal to or higher than last year's as lazy listing agents and inefficient offices get around to updating listings in the MLS that actually closed in June.
In going through the numbers of closed sales and recent price reductions, I'm getting a sense of renewed downward pressure on prices in some market segments. The bank liquidation of the Ocean Club building will likely negatively impact the troubled high end market as eleven buyers in the luxury market are now out of the picture having purchased there. There is one unit left in that building now, $849,000 for a 4565 square foot penthouse, not a great deal for a unit with a big chunk of it's ocean view obscured by the Coral Seas building immediately east.
Eleven of the closed condo sales in June were for less than $100,000 and none exceeded $430,000. Eleven of the total were short sales and nine were bank owned. It doesn't take Miss Cleo to figure out that with that level of distressed sales happening, unrealistic sellers are not going to find a buyer. Sellers take note: you are competing with the banks for buyers and you must accept that aggressive pricing is paramount in selling your property. If you're looking to buy, as always, define your wants, line up your purchase money and be ready to move when a priced-right property matching your criteria becomes available. I'd also advise being aware of current closed prices for your property type. Throwing out unresearched lowball offers hoping for a miracle is not a purchasing strategy. If you can't substantiate your offer price, you are probably wasting your time. Focusing on getting a big discount to asking price rather than getting a good deal may cost you a deal on an aggressively-priced property. I've said this before but it bears repeating. A strategy of offering an arbitrary percentage of the asking price is stupid. Nothing matters but the final purchase price and some asking prices are more realistic than others.
"An investment in knowledge pays the best interest."