Wednesday, June 22, 2011

Where it's at, direct ocean

I thought I'd dust off the abacus and do a rundown of recent direct ocean condo sales in Cocoa Beach and Cape Canaveral. Excluding side view and ground floor units, and including only units with at least two bedrooms and two baths, we are left with a mere 12 MLS-listed units closed since April 1.

Lowest priced sale was $225,000 for a 4th floor Wellington in downtown Cocoa Beach. It was a remodeled and fully furnished 2 bedroom, 2 bath with 1049 square feet and no garage. Highest price paid since April 1 was $975,000 for a massive 5152 square foot penthouse (7th floor) at Ocean Oasis also in downtown Cocoa Beach. This seven year old unit has 4 bedrooms, 4.5 baths and a 3 car garage. Top of the line everything. Seems like a deal when compared the the second highest sale, $865,000 for a 5th floor 3 year old Ocean Cove in south Cocoa Beach. While every bit as nice as the other unit, with 3 bedrooms, 3.5 baths and a 2 car garage it has 2758 square feet, just slightly more than half the size.

Others sold included units in Meridian, Xanadu, another Ocean Oasis, Michelina, Crescent Beach Club, Waters Edge, Royale Towers, Shorewood and La Mer. Highest price per square foot of the bunch was $314 for the Ocean Cove unit described above and the lowest was $154 per square foot for a top floor south corner Crescent Beach Club that was partially remodeled and in need of several new sliders. Average price per square foot paid for direct ocean condos with at least 2 bedrooms and 2 baths, above the ground floor and closed since April 1 was $202 and the median was $196.

For what it's worth, there were 13 units with the same criteria closed in the same period one year ago, April 1 through June 22, 2010. The average price per square foot then was $225 and the median was $236.

These averages are good to know whether you're buying or selling but are only one part of the picture. Don't get too hung up on the average if you've found a unit you like priced above the average number. With inventory of units at an all-time low, it might make sense to pay more than the average to get the unit you want. Likewise, if you've gotten an offer you think is too low based on the average, consider the cost of holding that property while waiting for another buyer willing to pay your hoped-for number.

Meanwhile, the sailfish have been thick just offshore with several boats catching and releasing multiple fish this past week. We've also seen some big dolphin and wahoo coming to the dock. Anglers in small boats and kayaks have been enjoying the flat conditions and playing with the giant tarpon and jacks around the bait pods just outside the surf line. If you head out, don't forget the sunscreen and water. It's been and still is extraordinarily hot.

"Cocoa Beach. How fab. You're so lucky." Jim Cramer responding to a recent Fast Money caller from Cocoa Beach


  1. Your past posts with clearly and accurately stated facts about the cocoa Beach/Cape Canaveral area will take a turn and fall by the wayside in the coming months. The market--and yes--your market will be flooded with inventory that has yet to be released by the banks. I can understand your rose colored view--but--I can't agree with the statement "it might make sense to pay more than the average to get the unit you want".Unless your talking about people with very deep pockets I say BALONEY---those days have passed and P.T Barnum has entered the market "a sucker is born every minute". I have to think that opinion belongs under the BIGTOP.

  2. The average is only the average. An average unit should command the average price with other sales coming in above and below that number.

    Example: 2 identical floor plan units, same floor, same building. One unit is in original 1985 condition. Other unit has been completely remodeled; tile, granite, cabinets, baths. According to you, I'm a sucker with very deep pockets because I'm willing to pay more for the nicer unit. I'll exercise my right to disagree.

    "You keep carrying that anger, it'll eat you up inside." Don Henley