Today the MLS inventory of condos and townhouse units for sale in Cocoa Beach and Cape Canaveral will likely hit 100 total units. The decline from 1200 units in May of 2006 to 100 today has been relentless. The flush of sales that began in late 2006 had the supply down to 500 units by 2010 and below 250 by 2015. The decline never slowed. The story for the single family home market has paralleled that of condos and we have a grand total of 20 existing homes for sale today in the two cities, only three of those asking less than a half million dollars.
What does this mean for the 2021 real estate market in Cocoa Beach and Cape Canaveral? At the current rate of sales the single family inventory will be gone in less than 60 days and the condo supply will last 48. We will add supply with new listings but unless the trend reverses, new listings will continue to lag sales. With this type of supply and demand imbalance, lacking some currently-unknown macro issue, prices will continue to climb. Those hoping to purchase can expect multiple offers on desirable, fairly-priced new listings. Know that sellers are taking advantage of the market conditions to swing for the fence with almost all new listings asking well above fair market value, some of them ridiculously so. Buyers should consider the possibility that they may have to overpay for a desirable property. It's an unfortunate situation but one that can't be ignored. There are buyers in our market who have been looking for years but who have been unsuccessful in their search because they can't bring themselves to pay current fair value because it is higher than when they began their search. Those who pinched their nose and overpaid last year have been vindicated as market value caught up with their, at the time, too-high purchase price.
In the last sixty days about half of all transactions were cash deals and a third of all listings sold in less than two weeks on the market. The fast and flexible buyers are winning. Those hoping to purchase a condo here who plan to use a mortgage need to talk to their lender before starting the search. The down payment requirement may be higher than anticipated. A low down payment condo loan will eliminate many condos from consideration as some won't satisfy lender requirements. As always, be prepared with finances first and know enough about our current market to be able to estimate fair value. Identify the target property type as closely as possible and be prepared to move quickly once a target has been acquired. Decide before the search begins what criteria are non-negotiable; if you must have a garage, if you'll be bringing a pet with you, if rental restrictions matter, the type of view you must have and if a particular location within our two cities is off-limits. Prepared and informed buyers will continue to be successful in this difficult market. Best of luck in your search.
"A Covid test nurse asked if I've had a sudden loss of taste. I told her, "No, I've dressed like this for quite a while." __Ruth Buzzi
