I shot this view one morning last week looking back at Cocoa Beach from about 8 miles offshore. Conditions have been extremely calm and beautiful on the ocean recently.
The market is still calm, as well. Sellers for the most part don't seem to be responding to the slowed rate of activity and I continue to see very optimistic pricing. We currently have a 90 week supply of over-$500,000 condos in our MLS. That number will grow as current and planned projects add supply. I think the long-term effect will be beneficial for lower-priced properties but I would not want to be holding a pre-construction contract in the high range unless I planned to live in the property. Investors in a few of the luxury buildings have been progressively reducing prices as completion approaches and the reality of having to close becomes imminent. Are the great days of rapid appreciation over? Who knows. I browsed listings in my old home of Destin, Florida and found quite a few listings in oceanfront buildings for over $1000 per square foot. Compared to that market, our $350 to $400 per square foot range appears downright cheap.
Mortgage rates took a breather last week and actually pulled back a bit. According to Freddie Mac, the national average for a 30 year fixed-rate mortgage is 5.8%.
MLS Stats for August 24, 2005
contracts last 14 days
condos over $500,000____ 3
condos under $500,000__ 31
homes over $500,000____ 2
homes under $500,000___ 4
condos all prices_______451
condos over $500,000__ 137
homes all prices_______ 57
homes over $500,000__ 36
Another interesting statistic is the number of new condos for sale. According to the MLS there are 133 condos built in 2005 currently for sale.
The calm ocean will be changing very shortly as Tropical Storm Katrina approaches. Expect a windy weekend. If you'd like an honest informed agent to help you find property in Cocoa Beach and Cape Canaveral, email me or call me at 321.917.5786.