Inventory Ramping Up - Sales Slowing

This little guy became disoriented during the last hurricane and when I approached him afterwards he walked over and hopped into my hand like I was a long lost friend. I took him back to the dunes where the rest of his family hangs out and hopefully he is still among those happily munching on my sweet potatoes and other plants that were not originally planted there for the marsh rabbits' culinary pleasure. However, I'm happy they enjoy them and will be planting new ones shortly.

Inventory in Cocoa Beach and Cape Canaveral has increased by about 11% in the two weeks since December 31 and we now have the highest number of condo and townhome units for sale since 2011. There have been 50 new condo and townhome listings added so far in January during which period only 15 units went under contract. Sixty five units have been for sale for six months or longer, most of them with multiple price drops that so far haven't produced a buyer. In addition to the highest inventory in fourteen years and rising rapidly, we had the lowest number of sales in fifteen years last year. Whether either of these trends persist into the year is unknown but the chart below illustrates that these trends have been ongoing for the last four years. 

Sellers take note. There are more of you competing for fewer buyers who are staring at once-again rising mortgage rates and skyrocketing condo fees and insurance. A third of the condo units currently for sale have monthly fees of $800 or more with sixty of them at $900 or more. While few were paying attention mortgage rates climbed almost a full point since September and are right at 7% at the moment for a 30 year fixed rate loan. If I was selling right now I'd not be expecting to get as much as I would have last year or the year before and if I was buying I'd be in no rush to offer unless I found the perfect unit at a price I liked. There are obviously exceptions to this but it's clear that this is no longer a seller's market. Conduct yourselves accordingly.

Pray for warmer weather, y'all. Floridians are suffering and many are woefully underequipped with cold weather clothing. Welcome early snowbirds and go ahead and laugh. The pain is real for us.

"If you don't remember what you said, it may be a sign you didn't say it." _Newt Gingrich