Saturday, May 14, 2016

Sell in May

Beautiful palm tree bloom at the Cocoa Beach Country Club.

Property sales in April in Cocoa Beach and Cape Canaveral, while brisk, declined year over year for the fifth consecutive month. The record low inventory levels we hit last summer were impacting closed sales numbers by year's end. We have since recovered somewhat in number of properties for sale but still remain well below historic levels. There are 296 condos and townhomes and 71 single family homes for sale this morning in both cities. As I've mentioned before, many of those properties are so overpriced as to be "not really for sale".

In the month of April there were 16 closed sales of single family homes. Median price was $300,000 with all of the upper half waterfront. There were 66 closed condos and townhomes with a median price of $186,000. Half were cash deals. Only two condos closed for more than $300 per square foot. One was a luxurious fully furnished direct ocean Meridian 3/2 and the other was an 844 sf Chateau that squeezed over the $300 mark because of the math of the smaller than average size. Most direct ocean units above the ground floor closed between $235 and $300 per square foot. That fact has not settled into many seller's reality. Hopeful sellers of direct ocean units take note: Units commanding above $300 have been in exceptional condition and usually fully furnished or way below average size as in the case of the Chateau unit. There are 25 units currently asking over $300 per square foot, four of them over $400/sf. In my opinion, only six of the 25 are worth above the magic $300 number and none of them over $400.

Unless we have a strong second half of the month, May sales look to fall well below last year's 71 units. Prices, however, continue their slow upward trajectory in spite of the slowing number of sales. Those looking to buy, as always, need to be able to distinguish those properties that are priced within striking distance of fair value. It is possible to waste a lot of time and energy looking at nice but overpriced property.

The weather in Cocoa Beach the last few weeks has been about as good as it gets. Light winds, moderate temperatures, warm ocean water and a lingering small longboard swell. Add the absence of crowds and it is everything one expects in a small Florida beach town. Today's forecast; sunny with a high of 80 and light variable winds. Superboat races tomorrow offshore Cocoa Beach between the Pier and Lorrie Wilson Park.

"You know what the secret to weight loss is? Don't eat much." ___Simon Cowell