The Home Stretch

The residential real estate market in Cocoa Beach and Cape Canaveral is coasting in slow motion towards year end. Twenty two condo units and two single family homes have closed so far in the first half of December continuing the slowdown in sales that began in 2022. In 2021, the busiest year on record, 863 condo units closed. We are on track to sell about half that number this year, the lowest number of condos sold since 2009. Note that our numbers this year were helped by the closings of 21 new units at The Surf condo downtown that were contracted years ago.

The pace of sales has been cut in half in just four years while at the same time inventory has expanded by five times. Inventory has vacillated at around 300 units most of the year and we’re ending the year with virtually the same number of properties for sale as we began. The median time on market for the current inventory is around 100 days. Median condo fee across all price ranges is $700 monthly with about a quarter of listings at $900 or higher per month. Higher fees, taxes and insurance are straining the math that buyers use to justify purchasing a beach condo.

December 31 is the final deadline (twice extended) for all affected condo associations to be in compliance with inspections and structural reserves. Those who used the extensions to indulge their procrastination have until New Year’s Day to begin funding the new reserves. With everyone’s fees finally including that funding, we will enter the spring 2026 season with a fairly level playing field. Rapidly escalating fees have been the turd in the punchbowl of the condo market for four years and that factor is front and center now as we head into the new year with the majority of associations in compliance. The condo market of 2026 in Cocoa Beach and Cape Canaveral is likely to be difficult for all participants. Buyers will have to come to terms with the the math of higher expenses and sellers will be forced to compete with their sharpest tool, asking price. I expect slower sales and lower prices for condos in 2026. It took longer than I expected for the condo legislation to noticeably affect the market but the wait is over and the condo reckoning is upon us. Best of luck to all participants. Those who are aware of and adapt to the new reality are those who will be successful in this market.

“Market forces have a way of cutting to the chase rather quickly.” _J.B. Pritzker