Three days and we'll be halfway through another year. At the mid-point of 2016 there are 245 existing condo and townhouse units for sale in Cocoa Beach and Cape Canaveral and another 26 in buildings yet to break ground according to the Cocoa Beach MLS. At the same time there are 63 single family homes for sale. For perspective, ten years ago there were almost 1100 MLS-listed condos for sale in our two cities.
Despite these tight inventory levels, we are continuing to see strong numbers of sales. Since the first of the year 340 condo and townhouse units and 77 single family homes and half duplexes have closed in the two cities. In the month of June we've already closed 57 condo units with a median price of $211,000. Closed direct oceanfront units above the ground floor this month have sold for between $231and $304 per square foot. Nice direct river units have been closing in a range between $155 and $200 a foot. Thirteen of the 53 new condo listings this month are already under contract.
Since June 1, eleven single family homes have closed at prices between $255,000 for a cute little 1042 square foot home one block from the ocean south of downtown Cocoa Beach to $1.1 MM for a gorgeous 14 year old Key West style open river home with 3985 square feet north of 520.
Mortgage rates are close to their all-time low with the national average 30 year rate at 3.56% according to Freddie Mac's weekly survey last Thursday. Despite these historical low rates, over a third of the homes and over half of the condos closed so far this month were purchased with cash. Buyers need to keep this in mind. For a seller, cash is almost always preferable to an offer contingent upon a mortgage. No underwriter, no appraisal (usually) and no delays waiting on loan approval. I'm aware of three appraisals that came in under the contract price last week. Three things can happen when a property appraises below the contract price.
1) the seller can drop the price to the appraisal number and move forward towards closing
2) the buyer can make up the difference by bringing more money to close or
3) the contract falls apart if the parties can't find agreeable middle ground. Far better for a seller to have a cash contract with no appraisal contingency and the accompanying concerns.
"I got my own way of talking, but everything gets done
With a southern accent, where I come from." __Tom Petty
