Wednesday, June 14, 2023

Increased Supply

The king surveys his kingdom
Inventory has been steadily creeping up since the end of snowbird season. The number of condo units for sale in Cocoa Beach and Cape Canaveral was around 135 units the first four months of the year but has since crept steadily upward and this morning stands at 164 units for sale. A little over a year ago in April of 2022 our inventory bottomed at 34 total condo units and a mere 12 single family homes for sale in our two cities. 

Sales activity remains steady although with pockets of softening in selling prices in some condo complexes. There were 58 closed sales in the month of May at a median price of $385,000. Out of 58 units, 35 closed for over $300 per square foot with ten of those bringing over $400 per foot. Two thirds of them sold for cash. Time on the market has increased with the median of 25 days on market for those closed in May. So far in June, 19 units have received an accepted contract.

Single family home activity is strong although supply remains scarce. Four single-family homes have received contracts so far this month with one of them selling for full asking of $1.225MM first day on the market.. Selling prices for homes likewise remains very strong with 13 of the 28 homes for sale asking over $1MM and three of those over $2MM. 

We are just now starting to see a few local condos beginning their milestone inspections which must be completed by the end of 2024 along with the subsequent structural reserve study. Agents are now required to provide the milestone inspection results and structural reserve study to buyers if requested. I would advise prospective buyers of Florida condos to ask for these documents. Be aware that very few condos have done these yet but as we move through the rest of this year and into next, they will become available. The results of both could change a buyer's mind about purchasing a unit. The structural reserve study will determine how much money needs to be raised for repairs that the milestone inspection recommended and by what date. For some older buildings in need of repairs soon, the increase to monthly fees could easily double or triple the current fee. Well-maintained buildings with no existing concrete issues will be among those least affected. Older buildings with obvious concrete damage will not. Caveat emptor.

"If you’re easily offended, you’re easily manipulated.” _unknown