Friday, April 22, 2005

April 22 Market Update - Cocoa Beach

April 22, 2005

Tax filing day has passed and the season has perceptibly changed in Cocoa Beach. The snowbirds have departed, traffic has eased, the grocery stores are peaceful and golfers can once again play a round of golf at the beautiful Cocoa Beach Country Club without an advance tee time.

We are anxiously preparing for next month's launch of the Space Shuttle. There is no other place in Florida where you can stand on your balcony and look over the ocean to a spacecraft leaving Earth. Check out this view of a night launch from the balcony of the 2100 Towers northeast penthouse.

For more photos of this incredible condo, click here.

Freddie Mac reports a continuing drop in mortgage rates with the 30 year fixed nationwide average at 5.80% this week, the third weekly drop in a row. Florida Today newspaper reports that median home prices in Brevard County are at $192,500, a whopping 106.5% increase in 5 years.

Market activity has continued it’s trend of increasing supply according to MLS records. We have had 32 condos go under contract in the last 14 days; 5 over $500,000 and 27 under $500,000. We have seen 121 new or changed listings during the same period. 37 of the changes were price reductions and 6 were price increases. Single family home sales have been brisk with 8 contracts (4 over $500,000) during the period from a supply of 54 active listings. Here's one example; a direct river home on Danube River Dr. overlooking the Thousand Islands. Listed for $749,900. This is the view.

Stats as of this morning, April 22 are as follows:

Active condominiums_______ 459
over $500,000_____________ 132
built 2004 or later__________170

Active single-family homes___ 54
over $500,000______________ 32

There has been some activity off the MLS record that is significant. A new development in Cocoa Beach between 4th and 3rd streets south has been announced. The entire block is being developed into luxury single family homes with prices beginning at $965,000. I have been told by the listing office that 17 of these are already reserved. This is remarkable in that the MLS reports only 5 properties (both condos and single-family) going under contract in the last 120 days over $900,000. Other off-the-record activity are two reported sales at Portside Villas of 2 bedroom units for $247,000 and $252,000. If these reports are accurate this represents a nice jump from the previous $230,000 range. There is still considerable inventory of re-sale units at Portside and I continue to think these represent good value as the lowest-priced new construction on the beach.

According to the developer, the first buildings should close in August or September.

There has been very little movement of investor re-sale units in new condo projects. The supply of investor-owned units represents, I believe, a good buying opportunity for informed buyers. There are many beautiful, brand-new units available at very attractive prices from investors who never planned to live in the units. As prices continue to soar towards and beyond the $1 million mark in new buildings, the current supply of under-$500,000 new units are worth a look. Here's an example; a southwest corner unit in Majestic Bay for $458,900. Building will be completed in May and this unit will immediately be increased in price if seller has to close. Check out the view.

If you’d like a list of current supply of units that I like, email me or give me a call at 321.917.5786. You can see selected listings here.

As always, these opinions are mine alone. I could be wrong about my projections and assumptions but I am on the front line and I do know my stuff, so, chances are, I’m closer to right than wrong.