Tuesday, March 14, 2017
It Fell and Can't Get Up
Will the Cocoa Beach and Cape Canaveral real estate market ever return to a healthy supply of properties for sale? I hope for more inventory but I'm not optimistic. Our historical supply peak was in 2006 when we had just under 1200 condo and townhouse units for sale. The long decline began the following year with short sales and foreclosures dominating activity and continued dropping through 2015 when we bottomed at less than 200 units for sale with the distressed inventory depleted. We are only slightly above that number at present with 222 existing units for sale. At the sales rate we averaged last year, we have enough inventory to make it to mid-July. There were 24 new condo listings in the week from Sunday March 5 through March 12. Seventeen units were contracted during the same seven days. There does not seem to be anything suggesting an increase in the supply in the foreseeable future. Barring external events this should continue to urge prices higher.
There are 46 direct ocean units with a view currently available, over half asking above $500,000. Lookers are out in droves but are having an increasingly difficult time finding fairly priced listings. Sellers are listing properties above fair value and hoping for a home run. Over 60% of the total listings have been on the market over 60 days, a clear sign of overpricing in a year when two out of five sold properties were on the market less than a month.
I think it's safe to expect prices to continue to rise in the near future. Slightly higher mortgage rates seem unlikely to impact sales with 60% of all condo sales so far this year having been paid for with cash. Things are only slightly different with single-family homes, 40% of those purchases this year paid for with cash. Good hunting if you're looking. Know that you're not alone and need to be ready to move quickly if you hope to succeed in your search.
"it’s a lot of work not being cynical. Sometimes it just ****ing sucks. Because you have to listen to both sides of every argument – ARRRRGHHHH! All the time it takes, damn!" ___Henry Rollins