Happy Easter Sunday everyone. I was away for a week (strong hint at location pictured above) and came back to 98 new condo listings, 89 price reductions and a mere nine new contracts. Those who’ve been following our inventory trend in Cocoa Beach and Cape Canaveral will recall that at the end of December we had 298 total units for sale. That number has increased to 405 in the sixteen weeks since. Excluding units that listed and sold since the first of the year, 236 of the total units still for sale have hit the market since December 31. A small percentage of those have been for sale for longer but have had their combined days on market manipulated by listing agents taking advantage of a loophole in MLS policy that allows them to erase the days on market by relisting with a new MLS number thereby appearing to consumers to be a new listing. Among those not deceiving the market, about 200 units have been trying to sell since Thanksgiving or before, 23 for over 300 days, with no luck. It’s a tough market out there for sellers, especially those who are clinging to expectations in line with last year’s selling prices.
Condo fees continue their increase as tardy associations begin funding the new structural reserves. Over 135 of current listings have a monthly fee of $800 or more. Prospective buyers should be aware that there are condos whose fees still do not include structural reserve funding despite the fact that the association may have done their required structural integrity reserve study. The Legislature tossed condo associations a bone by extending the deadline until December 31, 2025 to begin that funding and many are taking full advantage of that extension. New owners in those procrastinating buildings who didn’t review the budget and SIRS thoroughly may get a nasty surprise when the full funding begins at the end of this year.
Asking prices are still widely separated from closed prices. The median dollar per square foot for closed condos in oceanfront complexes since January 1, excluding The Surf, a brand new condo downtown, is around $350 per square foot. Direct ocean units with good views are above the median. The median asking price of the same group of units for sale is $412/sq ft. The metric of $/sf is flawed and inexact so there will always be outliers but it is useful for contrasting overall seller expectations with market reality. Those two things are at odds in this market.
More than ever, participants in this market need to be aware of the trends and the realities of properties that are closing when deciding what to ask or offer. As always, knowledge is power. Best of luck out there. There are deals to be had if one knows what a deal looks like.
“I’m sorry my mic was broken for a second… At least you know I sing live.” _Lady Gaga at Coachella this weekend
