Friday, April 20, 2012

Uncontrolled descent

The incredible shrinking condo inventory made another big move this week with 30 units going under contract since last Friday. That brings our total condos for sale inventory in Cocoa Beach and Cape Canaveral down to just 325 units this morning, April 20, 2012. That's a reduction of 28% since March 2011. Distressed sales make up 14% of the total with 24 short sales and 23 foreclosures. That's the lowest level of distressed properties since 2008, the year the first short sale was seen in our market when 15% of condo sales were distressed. (Click on either chart for a larger version.)

Single family home inventory is in a similar shrinking trend with a total inventory in the two cities of 65 homes for sale. Only 6% are distressed, four short sales and no foreclosures. Buyers with specific criteria have a very small basket of matching properties from which to choose. One consequence is an increase in the frequency of multiple offer situations. A note to buyers here; if your buyer's agent tells you that there are other offers on a property you want, don't assume the listing agent is playing games. If you want the property, stay engaged. Withdrawing or not offering because you distrust the Realtors involved doesn't accomplish anything other than eliminating a property from your list. With the abundance of lowball offers floating around, the fact that there are multiple offers may have no impact on your eventual purchase price. One of my clients was the winning offer this week at 83% of asking price in a three offer situation. Keep in mind.that, while distrust of real estate agents is a healthy thing, some of us can be trusted. Blanket distrust can be counter-productive to your goal. As I've said before, if you don't trust your agent, get another one.

"Weaseling out of things is important to learn; it's what separates us from the animals...except the weasel." ___Unknown