Tuesday, August 02, 2011

July wrap-up - running with the bulls

Gopher tortoise galloping across dune line behind Cape Winds condos.

Inventory may be shrinking but July's sales sprinted as if before bulls. There were 45 reported sales of condos and townhomes in the Cape Canaveral and Cocoa Beach MLS in the month. For perspective, that was 12% of the total condo inventory. There were 10 single family homes closed in the month or 13% of the total home inventory.

The lowest priced home sale was in Cape Canaveral, $150,000 for a small 2/2 in Ocean Woods. Cocoa Beach home sales ranged from $190,000 for a 66 year old, 3/2 across the street from the beach in south Cocoa Beach to $600,000 for a nicely remodeled direct ocean 3/2 on an over-sized lot a few blocks south of downtown. Only two of the July sales were canal homes. One was a small 3/2 short sale on Bougainvillea that sold for $280,500 and the other was a beautifully remodeled Snug Harbor 4/2 on Edwards Bay that closed for $400,000 just 7 days after hitting the MLS. Another of the 3 year old Enclave homes sold. This one had 4 bedrooms, 3 baths and had 3462 square feet and a 3 car garage and closed for $510,000. Asking price on this one just a couple of years ago was over a million dollars.

A third of the single family homes had a contract in less than a week on the market and the ten sold for an average of 93.7% of asking price.

The under $100,000 condos were on fire with a quarter of the condo sales landing under the hundred grand mark. Lowest price was $32,000 for a 1/1 Ocean Mist in Cape Canaveral. Other complexes with sales under $100,000 included Star Beach, Atlantic Gardens, Lamp Post, Rio Vista, Riverview Manor, Canaveral Breakers, Four Seasons and Twin Towers.

Other sales of note:

Two direct river Fountain Cove 2/2 units closed for $135,000 (5th floor) and $156,500 (4th floor) and a 4th floor 3/2 sold for $190,000. All three units were in the B building.

A big 3/2.5 townhome w/garage in Cape Canaveral 2 blocks from the ocean sold for $140,100.

Short sale 2/2 Sutton Place in south Cocoa Beach just one unit back from the ocean closed for $105,000. Ocean views from all windows.

Top floor 3/2.5 corner unit Treasure Island direct river w/boat slip, 1827 square feet closed as a short sale for an amazing $150,000.

A short sale 4 year old, 2nd floor Puerto del Rio 3/2 with 1852 sq ft and garage closed for $155,000. Sold for $325,000 new in 2007.

Two foreclosures at Solana Lakes closed in the month. A 1698 square foot 2nd floor 2/2 sold for $160,000 and a 2nd floor 3/2 with 1956 square feet closed for $199,000 which was $6500 above asking price.

A super nice top floor corner 3/2 "D" building Mystic Vistas sold as a short sale for $190,000. Sold new in 2006 for $448,000.

An A building Stonewood ground floor 3/2 sold for $195,000. 1588 sq ft and garage.

A 4th floor NE corner direct ocean La Mer 3/2 w/garage sold for $230,000 with the seller paying $10,000 towards an assessment.

A furnished top floor Shorewood, F building 2/2 with garage and a tiny peek of the ocean closed for $212,500.

A 2nd floor direct ocean Hacienda del Mar 2/2 in south Cocoa Beach sold for $240,000.

Two corner units closed in the month in the 5 year old direct river Garden Bay building. Both were 3/3.5 units with 2600 square feet and 2 car garages. A 3rd floor sold for $305,000 and a 4th floor for $319,000.

We also saw 3 units sell in Magnolia Bay in south Cocoa Beach. A 3rd floor, 2183 square foot 3/3 closed for $359,000, a 2nd floor 3/3 with 2552 square feet sold for $469,000 and a 3rd floor corner 3/3 with 2455 square feet sold for 4380,000. All had 2 car garages.

Second highest condo sale for July was a 2nd floor direct ocean 3/2.5 with 2291 square feet at Ocean Estates in Cape Canaveral that sold for $477,500.

High sale for the month was a 2nd floor direct ocean short sale at Artesia in Cape Canaveral. This 3/3.5 unit had 2478 square feet and closed for $549,900.

Of the 45 condo sales in July five were foreclosures and eight were short sales. Only one exceeded $500,000. There are 41 active MLS units asking over $500,000 this morning with total inventory of condos and townhomes at 380 units. Fourteen of those are foreclosures and 50 are short sales making 17% of our active supply distressed. Only 56% of condo purchases in the month were for cash, a substantial reduction from previous months. There were quite a few owner financed deals in the mix.

On another subject, I am becoming convinced that another big change is in the works for condo mortgages. I have two delayed closings this week because of abnormal documentation requests from underwriters for two different national lenders. Without getting into the ridiculous details, it appears to me that in spite of the already very stringent documentation requirements for Florida condo mortgages, we are about to see a whole new level of friction from mortgage lenders if not outright withdrawal from the Florida condo mortgage market. If you have a condo loan in the pipeline right now you know what I'm talking about. You heard it here first.

"Somewhere, something incredible is waiting to be known." Carl Sagan