Wednesday, September 20, 2006

A rose by any other name...

What a September it's been so far. We've had the best surf in recent memory and the hurricane cycle has returned to the big eastern loop producing clean swells with no local winds. Market activity has picked up considerably, at least from my personal observations. My office has had it's busiest 2 months of the year and conversations with other agents on the beach confirm the same trend. We still have high inventory levels but some prices have dropped to the magic point where buyers are comfortable participating. Existing homes and condos are moving when priced at 2003-2004 levels and there are sellers who realize this.

The next leg of this transition is starting to play out. Michelina on the beach has begun closings and Magnolia Bay on the river will soon begin closings. There is still a lot of pain yet to come in these and other high-end new condos. I am seeing lots of speculators trying to dump their investment pre-construction units with very little success. The difference in the price of a new unit and an existing unit is great enough that a willing buyer can purchase an existing unit in a good building and completely renovate and save six figures.

Here are the sales numbers from the MLS for the 1st through the 15th of September. The actual number may be higher as some sales may not have been posted yet by a tardy listing agent.

Closed condos___________20
Closed single-family________4

MLS stats, Cocoa Beach and Cape Canaveral - Sept. 24, 2006

Active condos for sale, all prices________1019
___condos over $500,000_____________216

Single family homes, all prices__________135

I'll leave you with a shot of last Wednesday's surf. My neighbor Gerry dropping in on a nice little right as the guys in the boat behind chase tarpon. September, truly a rose of a month in Cocoa Beach.


Thursday, September 07, 2006

August numbers

The numbers are in for August and, as expected, sales were very slow. Condo inventory has reduced somewhat but, at the current sales rate, it will take more than 3 years to absorb. I have seen some significant price reductions, most notably this week, a canalfront home in Cocoa Beach lowered to $399,000. Buyers with the nerve to step up and play are walking away with prices not seen in several years.

MLS stats from Cocoa Beach and Cape Canaveral

Active condos for sale, all prices________991
___condos over $500,000______________210

Single family homes, all prices__________140

Closed condos in August 2006___________28
Closed single-family Aug________________10

Labor Day was a great, longboard day of surf in Cocoa Beach. Small, glassy and peeling for blocks. The mullet run has started and I've pulled 2 snook out of the surf in the last week. Hopefully, the tarpon will move within casting range any day now. Get out there and enjoy fall in Florida. The kids are back in school, the tourists have gone home and the weather is beautiful.