August property sales have somehow maintained (so far) the strong pace of the first half of the year even with a rapidly declining inventory. Of the 41 closed residential sales posted in the Cape Canaveral and Cocoa Beach MLS as of this morning, August 21, 27% were distressed, five foreclosures and six short sales. Ten of the 41 sales were single family homes, all in Cocoa Beach and all but one waterfront. Two were direct ocean, one a 50 year old cottage with small guest house that sold for a shocking $415,000. Small and needing work but wow, $415. I would have expected a bare lot on the ocean to bring more than that.
Surprisingly, with 30 year fixed rate mortgages at an all time low (4.15% national average) cash is still king and almost the only game in town where condo sales are concerned with 81% closing with cash. The majority of single family homes are also selling for cash with only four of the ten home buyers getting a mortgage. I suppose that property at depressed levels is a more attractive parking spot than equities after the hammering of the stock market in the last month.
Inventory this morning stands at 369 condo and townhome units in Cocoa Beach and Cape Canaveral and 77 single family homes. Of the single family homes for sale, 39 are waterfront, exactly the number of waterfront homes that have sold in the last six months.
I'll get into specific August sales of note in a later post. Highest forecast temp for the next ten days is 90 and that's just for one day. We look to get some effect from Tropical Storm Irene next weekend which is expected to be a hurricane by then. Tis the season. Off now to enjoy some waves from the persistent small swell that's been hanging around for what seems like weeks. If you have any questions about property or have anything to share about our market shoot me an email to larry@southcocoabeach.com. Peace.
Efficiency is intelligent laziness. __David Dunham
One would have to take some type of educational guess and conclude that second half sales being equal to first half sales are a result of investors of the professional kind rather than the mom and pop variety.Investors linked to banks and independent mortgage lenders are well known hawks of depressed properties.In my opinion property will still drop another 10-20%.Stocks of high quality are a much better investment--dividends make them even more so.Cash for deep pocket investors would be prudent--but---for the average Joe that should permeate your market--a mortgage that will soon be in the three's would be the correct move for folks with excellent credit.Cash is a bad bet with the economy in disarray.You always--ALWAYS--use someone else's money at bargain basement rates.As they say----a fool and his money are soon parted.
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