Tuesday, May 10, 2005

May 10 update - Cocoa Beach

May 10, 2005

Even though mortgage rates continue to drop, the supply of homes and condos in Cocoa Beach and Cape Canaveral, according to MLS records, has changed little in the last 14 days. New projects are adding supply at an even pace to units sold. We have had 42 condos go under contract in the last 14 days; 3 over $500,000. Stats as of this morning, May 10 are as follows:

Active condominiums_______ 433
over $500,000____________ 134
built 2004 or later__________163

Active single-family homes____ 60
over $500,000______________ 38

Contingent last 14
single family homes________3
over $500K______________3

Construction of new condos is continuing at a strong pace, especially in the extreme southern end of Cocoa Beach where the island is at it’s most narrow part. This is where I live and is my favorite part of Cocoa Beach. We have the Banana River on the west side of A1A and the Atlantic Ocean on the east. The low population density here keeps the beach uncrowded. There are currently over 200 condos under construction or planned in this 3/4 mile stretch. Considering how many high-end condos sit empty for out-of-town owners, I suspect I'll still be able to stroll an uncrowded beach even after the build-out is complete. I foresee a short-term crunch in the sales of new condos here with all the new supply, but, long term, this area will always be special. This is the time to be aggressive with offers as sellers severely outnumber buyers in this predominantly over-$500K market.

If you’d like a list of current projects, email me or give me a call at 321.917.5786.

As always, these opinions are mine alone.