Yes, It's Slow

This month has been unusually slow, even for one of the historically slowest months of the year. As of right now, October 30, we have closed just 19 condo and townhouse units in the month. For perspective that's slower than any of the crash years of 2006, 2007 and 2008, the only years of the last twenty when we've closed less than 30 units in October. Three years ago in 2021 we closed 80 units in October. Our busiest month so far in 2024 was March with 63 sold units.

Median closed price of the sold units was $322,000 and median time on market was 98 days. All but one of them closed for less than the original asking price. Average selling price to original ask was 91%.

Single family homes have been unseasonably slow as well with just eight closed sales so far in October. Median selling price was $773,000 with a median time on market of 149 days. There are currently 50 single family homes for sale n our MLS with a median asking price of $900,000 and a median time on market of 103 days. There is only one listing asking less than $500,000.

There are 273 total condo and townhome units on the market this morning in Cape Canaveral and Cocoa Beach with a median time on market of 93 days. The flow of new listings has slowed over the last few months which is not unusual for this time of year. We typically get a surge of new listings after the first of the year as we transition into snowbird season. I am expecting a strong snowbird season with a lot of displaced snowbirds who would have been on the west cost except for hurricane damage impacting supply. There are still rentals available for the 2025 season for those who might be looking. I am seeing several attractive oceanfront condos available in the $3500 to $5500 a month range for snowbird season.

Th daily rains finally let up a few days after Hurricane Milton passed directly over Cocoa Beach and the Cocoa Beach Country Club was able to open the golf course up after being underwater for weeks. Local golfers will be trying to get in as many sessions as possible during the mild weather before the snowbirds begin arriving in January and average nine hole rounds creep back towards three hours.

“There comes a point where we need to stop just pulling people out of the river. We need to go upstream and find out why they’re falling in.” _Desmond Tutu

Are Condo Prices Rising or Dropping?

Last week's Vulcan rocket launch as seen from my office.

The answer to the title question is both. It seems that overall prices are declining with some complexes recording significant declines [see my last sold example below], but we have occasionally seen sales closing at prices that are out of step with the overall market. I was reminded of this today when I was reviewing recent condo sales and noticed the closings of two similar oceanfront Cocoa Beach 1/1 condo units on the same day, one for $210,000 and the other for $350,000. Both were south side units, the more expensive one 2nd floor and both had assigned open parking and were within 35 square feet of the same size. The higher priced unit was more nicely remodeled but the lower-priced unit was in a building that allows weekly rentals so potential for higher income is much greater with the cheaper one. The buildings, unit sizes, amenities and views were essentially the same and a buyer decided that the better remodeling job in one of them was worth $140,000 more than the other.

Buyers are still sorting out how to deal with the new requirements for signed Buyer Brokerage Agreements. Their reactions to this have been varied and have slowed or stopped more than a few searches. I've heard several say that they would not be signing any agreements and would just contact listing agents directly in hopes of not being stuck with owing an agent a commission at closing. This on top of the uncertainty of future condo fees related to the new reserve requirements just adds more friction for sellers during this historically slowest time of the year. Toss a couple of hurricanes into the mix and selling a Florida condo in late 2024 becomes an unpredictable challenge.

Despite the hurdles, sales are closing. A total of 46 condo units have closed since September 1 with 58% of those closing for cash and a median time on market of 88 days. Median selling price was $387,000 with a median condo fee of $630 per month right in line with the median fees of the remaining inventory of 271 units.

Sales of note included a retro penthouse unit with panoramic Banana River views at Rock Pointe in Cocoa Beach that closed for $910,000. This 37 year old unit has 3500 square feet, 3 bedrooms, 4 baths and two garages and has a wrap balcony at the tip of a peninsula overlooking the river. 

A tastefully remodeled 28 year old, 6th floor direct ocean Majestic Seas of Cocoa Beach with 1924 square feet, 4 bedrooms and 2 baths closed for $849,000 after 25 days on the market.

A beautifully remodeled 3rd floor direct ocean end unit 3/2 Shorewood in Cape Canaveral with 1922 square feet, also 28 years old, sold for $740,000.

A nicely remodeled top (4th) floor, direct Banana River, Banana Bay of Cocoa Beach end unit 3/2 with 2018 square feet sold for $540,000 in 3 days.

An upgraded 2050 sq. ft. 2nd floor, direct wide-open Banana River 3/2 River Bend in south Cocoa Beach closed for $514,000. 

A 4th floor south ocean view Canaveral Towers furnished 2/2 closed for $485,000, confirming a low for this complex as the second unit to close for this price. This unit was purchased for $550,000 in 2023 when multiple units closed in the mid to low $500s. That price range seemed like a deal at the time after multiple identical floor plan units closed in the building in 2022 in the $700s with one closing for $839,900. Apparently mid $500s was not the bottom for this cycle there.

Now that we have a named storm in the "box" which includes the entire Gulf of Mexico, insurers have stopped binding new policies which will effectively torpedo most closings scheduled for this coming week. Barring another newly named system there's a chance that some closings may happen next Friday once Milton is far away in the north Atlantic.

Everyone should be gathering up any unsecured or unanchored items in the yard and furniture off balconies in preparation for the winds of this approaching storm. The winds will probably arrive Tuesday ahead of the storm which looks to pass over quickly on Wednesday. It will be brief but wind is predicted to approach hurricane levels for a few hours. Anything that can be blown around can become a deadly projectile. Do yourself and your neighbors a favor and try to reduce the potential projectiles by putting loose items inside or in a garage. That definitely includes trash cans. Stay safe y'all.

Conversation with an AI;

"Ignorance is bliss, hey?" 

"I am unable to experience bliss but I am able to model the benefits of ignorance."