Falcon launch yesterday as seen from the backyard. We were able to watch the rocket return and land at the Cape a few minutes later followed by the double sonic booms.
I concentrate most of my research and commentary on our condo market since condos and townhomes typically represent about five times the number of sales and listings in the Cocoa Beach and Cape Canaveral market that single-family homes do. Right now there are a total of 465 total residential listings in our market and only 74 of them are single-family homes.
Looking at this same time last year there were 41 homes for sale and they were selling at a rate of eleven per month so less than a four month supply on hand in March 2024. So far, in the eleven weeks since January 1, exactly twelve homes have gone under contract. At that sales rate we have about a 17 month supply if no increase in inventory so enough to last until about August of next year.
What does this mean for those who are trying to sell their homes? With about one home finding a buyer per week, competition for buyers has almost tripled in just a year. Sellers should expect to take longer to sell and should not expect to get as much as they might have last year. Without an uptick in the sales rate, with a 17 month supply, the math says several of the current listings will still be on the market this time next year. Those will be the ones unwilling to accept the current reality and who do not price accordingly. Those who aren’t paying attention and pricing fairly are not going to sell. Buyers are fewer and they’re skittish with employment worries and uncertainty with regards to insurance and the economy in general. Our current market demands a different strategy. Good luck to those hoping to sell and congratulations to those twelve who successfully picked off buyers so far this year. The other 74 still on the market would be prudent to study the details of recent comparable sales, primarily the selling prices. Knowledge is power.
This month marks the 21st anniversary of this blog. I have never been without material to write about. When I began writing about our market we were in the boom years of 2004 to 2006 when buyers were being chosen by lottery just for the opportunity to reserve pre-construction condos. The crash hit us hard in 2007 and we quickly transitioned from a strong seller’s market into a market dominated by distressed sales. There were zero distressed sales in 2007 but in 2008 we began seeing short sales as previously optimistic investors began unloading negative-equity properties with cooperation from their lenders. By 2010 over half of all sales were distressed, either short sales or foreclosures. It took until 2017 to completely work through our supply of distressed listings. Inventory was at its peak in 2006 and began a decline that lasted until 2015 when it stabilized for a few years before resuming its decline until 2022 when it finally bottomed. It has been steadily increasing since 2022 and we now have the highest inventory of residential properties since 2010 combined with a sales rate that has been in decline since 2021. We shall see how this works out but the trends in sales and inventory do not signal a healthy market. I would advise sellers to look at their competition and the comparable properties that are selling and price accordingly. That is imperative if they want to join the shrinking group who are being successful.
"If you are leaping a ravine, the moment of takeoff is a bad time to be considering alternative strategies." _John Cleese