Friday, April 13, 2012

Low and outside - batter walks

 April 13, 2009, three years ago today. Seems like just yesterday. Apple stock closed that day for $123, up an amazing 50% in just three months. I put in a stink bid for $110 hoping to score in the pullback that was sure to come. In the period from March 1, 2009 through April 13, 2009 there were 12 closed MLS listed direct ocean condos in Cocoa Beach and Cape Canaveral. I thought I'd compare the same time period in the following years. The difference in prices paid for these types of units has not been as extreme as I expected before doing my research.

March 1 through April 13

2009 - 12 units closed - High $/square foot $286 (new Meridian corner)
___________________Low $/square foot $158 (foreclosed Almar)
___________________Average $/sq. foot $214

2010 -  8 units closed - High $/square foot $253 (Cape Winds corner)
___________________Low $/square foot $122 (foreclosed Ocean Club)
___________________Average $/sq. foot $216

2011 -  9 units closed - High $/square foot $272 (Michelina)
___________________Low $/square foot $163 (short sale Las Palmas)
___________________Average $/sq. foot $213

2012 - 12 units closed - High $/square foot $272 (new Ocean Cove)
___________________Low $/square foot $108 (ground floor La Mer)
___________________Average $/sq. foot $191

In April 2009 our total MLS-listed condo and townhome inventory in Cocoa Beach and Cape Canaveral was at 700 units with 36% (just over 250) of those distressed (short sales or foreclosures). Our inventory this morning is less than half that at 346 total units for sale with 15% (52 units) of those distressed. In the three years being discussed our inventory has been halved and the number of available distressed sales has been reduced by 80%. Those buyers who've been waiting for that screaming deal foreclosure or short sale have a much smaller pool of possibilities and greater competition from others who have found themselves in the same position.

Take away: The days of expecting to score with a crazy lowball offer are, for the most part, behind us. For buyers hoping to purchase a condo, there are still some very nice units at very attractive prices, just fewer than in the recent past. I would advise offering a fair price in line with recent comps if you find something you like. Throwing unsupportable lowball offers is a recipe for frustration. By the way, Apple closed yesterday at $622. I'm still waiting for my $110 order to be filled.

"Did you ever feel like a plastic bag,
drifting through the wind, 
wanting to start again?"
________Katy Perry