Thursday, May 18, 2006

Capitulation, my brother

Price drops this spring have been dizzying with Portside leading the race down. My most recent sales there have been at prices a third below the peak. While some sellers are still in la-la land, many have now come to terms with the new market. The harsh reality is that prices have retreated pretty much across the board as the herds of last year's buyers have evaporated. Some sellers cannot afford to ride out the downturn and have priced their properties to move. With 909 active condos in our MLS in Cocoa Beach and Cape Canaveral, motivated sellers must be aggressive with their pricing. By the way, of those 909 units, 236 are over $500,000.

I showed 26 different condos under $250,000 this past Sunday. Many were older 2 bedroom units around 1000 sq.ft. from $200K to $245K but smack in the middle of our list was a 1400 sq.ft. 3 bedroom unit with brand new cabinets, flooring, appliances and granite all tastefully done, offered for $250,000. This seller obviously has to sell and has priced accordingly.

Will prices drop further? Maybe. Will there be another unit in this condition in this same complex later? Who knows? If you're planning to buy in our great little town, now might be a good time to start looking. That special location or property that you're looking for may not be offered at exactly the market bottom, so, it might be prudent to be ready to move if your dream deal turns up. Good hunting.