Sunday, November 30, 2008

Free Falling

Mortgage rates have been in virtual free fall for the last month dropping almost three quarters of a point in 30 days. The monthly payment on a $300,000, 30 year fixed rate mortgage this week is about $150 less than the same mortgage initiated just 30 days ago.

Condo sales for the month of November were slow as expected and exactly matched last year's number for the same period with 17 closed sales reported on the Cocoa Beach and Cape Canaveral MLS. Only one sale exceeded $325,000 and seven of the sixteen were either short sales or foreclosures. Notable sales included a foreclosed two year old, 3 bedroom, 2.5 bath townhouse in Cape Canaveral, one block from the ocean that sold for $149,900. Selling price exactly two years ago when it was new was $350,000.

There have been 120 price reductions of condos during the month of November increasing our somewhat meager supply of attractively-priced units. Two of the price reductions were in one of my favorite river buildings, Majestic Bay in Cape Canaveral. I like this 3-year-old building for it's very private location, the extra amenities and excellent construction and workmanship. One of the units is a 1900+ sq. ft., 2nd floor unit with a private 2 car garage offered as a short sale for $279,000. It sold in February 2006 for $445,000. The other drastic price reduction in the building was the developer's personal 4th floor corner unit with a deeded boat slip and 2 car garage. The price of this gorgeous unit with many extras was dropped from $475,000 to $349,900 making this one of the smoking deals of the moment.

"In the middle of every difficulty lies opportunity."
_________Albert Einstein