Monday, August 23, 2010

Supply and demand at work

Goodbye, Dad. I'm gonna miss the hot days picking vegetables with you in your garden. I won't forget about always doing the right thing.

Sorry for the gap between posts as I've been away from Cocoa Beach. Not surprisingly, not a lot has happened in the market in recent weeks. The slowing sales trend I noted in the last post has continued into August. The well-picked-over condo inventory is being reflected in the low sales numbers. Anecdotaly, the demand seems to still be there. As of this morning, only 15 MLS listed condos have closed in Cocoa Beach and Cape Canaveral in August. Prices have ranged from $50,000 for a non-waterfront, foreclosed Cape 2/2 condo to $245,000 for a five year old 3/2 Bayport villa with 2 car garage.

Other sales of note included a 7th floor Royale Towers "C" building, south ocean view 2/2 with garage that sold fully furnished for $216,000.

A furnished 2/2 townhouse-style Royal Mansion with a peek of the ocean closed for $180,000. Open parking and on-site management for short-term vacation rentals (40% fee). Note that condo fees for the 2/2 units here is $568 per month.

A direct river ground floor 2/2.5 in Waters Edge West in south Cocoa Beach closed for $166,500. This unit has a big private garage and a deeded boat slip.

A foreclosed, big (1350 sf) 2nd floor, 2/2 Fountain Cove direct river with garage sold for $138,000. This unit last sold in 2005 for $315,000.

Another lakefront Harbor Isles 2/2 has closed for $110,000. This one was 2nd floor with private garage. Only one unit sold for less in this complex in the last ten years. That was in 2001 for $106,000.

Two of the popular Diplomats 2/1 units have closed, one for $85,500 and one for $85,000. These numbers take us back to 2002 levels in this complex.

A cute 2nd floor 1/1 south ocean view Beach Villas in south Cocoa Beach sold for $92,500. Open parking and a big wide balcony with a good ocean view.

I expect the slow sales rate to continue indefinitely as a result of the low inventory. My take on price trends is split. There are at least two stories there. While prices have been holding steady in the older direct ocean units in that sweet $200,000 to mid-$300,000 range, prices in the luxury buildings in the upper range ($500,000+) have continued to erode and I expect that trend to continue.

"I hate to say it but you're so much more endearing with the sound turned off."

_______from "Talk Shows on Mute" by Incubus