Cocoa Beach 2006 first half stats

The numbers are in for the first half of the year. These are MLS stats and don't include private sales but are reflective of our market as a whole.

Closed sales from Jan. 1 through June 30, 2006
in Cocoa Beach and Cape Canaveral

single-family homes______31
condominiums_________283

The results are not surprising although some activity is eye-opening. Out of the 283 condos sold, only 10 were over $600,000. That should concern the sellers of the 143 units that are currently listed for more than $600,000 and those expecting to list soon [holders of pre-construction contracts in this price range]. Below are the current numbers and closed sales for June. Inventory has stabilized since climbing through 1000 total units the end of May. Sales appear to be holding their own but after digging into the specifics it turns out that 24 of the 53 June condo sales were just-completed new units.

MLS stats from Cocoa Beach and Cape Canaveral

Active condos for sale, all prices_________1021
___condos over $500,000_______________228

Single family homes, all prices___________132

Closed condos in June 2006_______________53
Closed single-family June_________________10

Deals continue to surface as sellers capitulate. My current favorite is an 1800 sq.ft. updated home on a great canal for $499,000. It is on one of my favorite Cocoa Beach cul-de-sacs. My favorite in last week's post, the 3/2 condo at Harbor Isles, went under contract after being dropped to $220,000. If you have any questions or comments about the market, shoot me an email or give me a call at 321.917.5786.

More deals, stats and a shuttle launch

A few good deals crossed the wires this week.

1. A 2 bedroom, 2 bath townhome, 1279 sq.ft. with garage and deep-water boat slip, walking distance to the beach and downtown Cocoa Beach for $199,900. Lasted a mere 4 days on the market before contract.

2. Canal-front 3 bedroom, 2 bath single-family home, 1566 sq.ft., walking distance to the beach, sold for $405,000.

These deals continue to pop up but rarely last long when the prices are this attractive.

Condo inventory is starting to reduce as new projects cycle through closings with projects like Portside, Perlas, Puerto del Rio and Bayside contributing hundreds of units to the closing totals in Cape Canaveral. Expect the stats to show strong condo sales for the next few months as these projects close. Don't be deceived by the healthy-appearing numbers of sales as most of these were contracted a year or two ago. Current sales are still slow but activity has increased sharply from previous months. The stats from the county for all sales will show significantly higher numbers than mine which are for MLS-listed properties only.

MLS stats from Cocoa Beach and Cape Canaveral

Active condos for sale, all prices_________1038
___condos over $500,000______________234

Single family homes, all prices___________129

Closed condos in May 2006______________53
Closed single-family May_________________6



The launch of shuttle Discovery to the International Space Station is set for Saturday afternoon. This is the same spacecraft that delivered the Hubble telescope to it's orbit in 1990. Godspeed.

[edit-July 4th] Discovery is up and on her way. Pic from the beach a few minutes ago.

Random deals

I snapped the photo above of Harbor Isles in south Cocoa Beach from the river this past week as I cruised by. It's hard to believe that a 3 bedroom unit completely and tastefully remodeled in this complex is being offered for $240,000. This particular offering effectively renders all other non-direct river units in the complex dead in the water until it is sold. It is priced below 5 other smaller 2 bedroom units and all the other 3 bedroom active units in Harbor Isles and is $52,000 below what an identical floor plan sold for in March of this year.
___________________________________________________

How about the River Lakes complex next door in the photo below. A remodeled 2/2 unit in this building is being offered for $249,000. This compares to an identical floor plan that sold one year ago for $300,000. Not only can you get a $50,000 discount, but, boat slips are available for the asking, no charge.



Summer is here and life, as always, is good in Cocoa Beach. Email me with any thoughts, questions or observations about real estate, fishing or life in Cocoa Beach. I'll close with a Cocoa Beach sunflower.

Happy Memorial Day from Cocoa Beach

Happy Memorial Day. I have decided to begin posting MLS stats again even though the accuracy is still doubtful. Treat these numbers as a general view of our market and not as exact statistics. Our system is still being manipulated intentionally and accidentally. One other misleading factor in these numbers is the high number of Portside units being closed now as the buildings have finally begun closing after a long delay. Many of these sales were contracted a year ago or more and don't really reflect recent activity. They will continue to close at a more rapid rate in the next few months and will inflate the total of closed listings.

MLS-LISTED FOR SALE IN COCOA BEACH AND CAPE CANAVERAL

Total condos and townhouses___1047
Total single-family homes______138

Total closed in April_____53
Total closed in March____74
Total closed in February__43
Total closed in January___24

A few outstanding buys from this past week;

6th floor direct ocean, 2/2, 1350 sq.ft. for $299,900 This unit needed work but at this price, was still an incredible deal. It sold immediately.

Brand new, 2/2 upstairs Portside unit with vaulted ceilings $178,000

Brand new, 1/2 upstairs Portside unit with vaulted ceilings $137,000

Those of you hoping to pick up deals in this market can see from these examples that some sellers are starting to capitulate. Call me or email if you want to be on my alert list when these deals show up. Larry 321.917.5786

Cocoa Beach passionfruit bloom

Capitulation, my brother

Price drops this spring have been dizzying with Portside leading the race down. My most recent sales there have been at prices a third below the peak. While some sellers are still in la-la land, many have now come to terms with the new market. The harsh reality is that prices have retreated pretty much across the board as the herds of last year's buyers have evaporated. Some sellers cannot afford to ride out the downturn and have priced their properties to move. With 909 active condos in our MLS in Cocoa Beach and Cape Canaveral, motivated sellers must be aggressive with their pricing. By the way, of those 909 units, 236 are over $500,000.

I showed 26 different condos under $250,000 this past Sunday. Many were older 2 bedroom units around 1000 sq.ft. from $200K to $245K but smack in the middle of our list was a 1400 sq.ft. 3 bedroom unit with brand new cabinets, flooring, appliances and granite all tastefully done, offered for $250,000. This seller obviously has to sell and has priced accordingly.

Will prices drop further? Maybe. Will there be another unit in this condition in this same complex later? Who knows? If you're planning to buy in our great little town, now might be a good time to start looking. That special location or property that you're looking for may not be offered at exactly the market bottom, so, it might be prudent to be ready to move if your dream deal turns up. Good hunting.

Mortgage Shenanigans

Do you have a mortgage? Did you get the best deal possible? Ever hear of "yield spread premiums"? According to some sources as many as 85 to 90 percent of all transactions include YSPs. Remarkably, these kickbacks are buried off-column on the HUD settlement statement and are often completely overlooked by the borrower. The short story is that these YSPs are bonuses paid to your mortgage broker by the lender for charging you a higher rate than you qualify for. If you got your mortgage directly from the lender, the YSP doesn't even have to be disclosed on the HUD. Check your HUD around lines 809 to 811 and look for cryptic notes with numbers. Those numbers you find there are probably money you paid your mortgage broker that came unknowingly from your own pocket. In 2002 the average amount per transaction was around $1850.00 and is probably higher now. Here's a good read on yield spread premiums.

This is not the only shenanigan I've witnessed but it seems to be one of the most widespread and least understood. Your good faith estimate will probably not disclose this premium. Tell your broker that you will not accept any YSP on the HUD, UNLESS it is known by you and being used in lieu of other upfront mortgage costs to offset your total closing costs.

Here is the section of the HUD where you will find the hidden gems. Not in the "paid from borrower's funds at settlement" column, but off-column to the left.

800. ITEMS PAYABLE IN CONNECTION WITH LOAN
801. Loan Origination Fee %
802. Loan Discount %
803. Appraisal Fee to
804. Credit Report to
805. Lender’s Inspection Fee
806. Mortgage Insurance Application Fee to
807. Assumption Fee
808. Mortgage Broker Fee
809. -------------------somewhere
810. ------------------in this area is
811. ------------------where it will appear

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Knowledge is power.

Manipulation, my brother

OK, I've been asked yet again about the practice of withdrawing a listing and then relisting so that it shows on the MLS as a brand new listing with no price history. Unfortunately, this practice is entirely legal and is widespread, especially now that properties are lingering for much longer than in years past. It's legal, but, is it ethical? By my measure of ethical, no. The only reason for withdrawing and relisting a property is to mislead a prospective buyer. Like hidden agent bonuses, this is the sort of thing that undermines the public's perception of realtors. I did a quick search this morning of recent activity and found 2 nice examples.

Condo A - 255 days on market, original price $829,00 withdrawn and relisted same day by same agent for $759,000

Condo B - 105 days on market, original price $449,900 withdrawn and relisted same day by same agent for $409,999

A consumer or a lazy agent would never know that these weren't new listings. Shame on the National Association of Realtors for not taking a stance on this practice.

How was your Easter weekend? Mine was great. Fun waves and a pretty-much deserted beach. You've heard me talk about uncrowded beaches in south Cocoa Beach and here's the proof. While the area north of us was blanket to blanket, the photo at the top of this post is how our beach looked at midday Saturday, a beautiful beach day, the day before Easter.

And just beyond the water's edge, your's truly leans into a fun one.



I didn't have a thought about the market all day. Until next time, stay hydrated, use sunscreen and question everything.

Lies, damn lies and statistics

As requested, another photo from Cocoa Beach. Springtime means the oleanders at the Cocoa Beach golf course are blooming.



This post was going to be about manipulating statistics to serve a pre-determined purpose, but, in researching data for my examples I found so many errors from all my sources that the point seems moot. Here are the sales of residential properties in Cocoa Beach over the last 6 months according to Melissa Data. These are actual closed sales during each month and the average sales price. [note: the MLS reports 21 closed sales in March, not 18. Who are we supposed to trust?]

Month____transactions_____average price

03-2006_________18____________$434,000.00
02-2006 ________25____________$338,000.00
01-2006 ________28____________$443,000.00
12-2005 ________33____________$332,000.00
11-2005 ________49____________$406,000.00
10-2005 ________28____________$364,000.00

Differing agendas could claim a 28% rise in average selling price from February 2006 to March 2006 or a 24% decline from January to February. My point is that a reader should take all statistics relating to home prices and sales with a grain of salt and a little skepticism. And, as I have stated in the past, mistrust any numbers coming from the Brevard County MLS. I think I can now expand that to include all sources.

Now for a totally unscientific observation of our market; it's slow. With sellers clinging to last summer's prices and buyers looking for steals, finding an acceptable middle ground is difficult and often impossible. If you are selling, consider that your property may be worth less than you think. Buyers are scarce right now, so, consider every offer no matter how unattractive. Remember that an offer is an invitation to negotiate. If you are buying, don't become married to your lowball offer. It's not necessary to steal a property to make it worth owning. This is still the best little beach town in Florida and now is a great time to be a buyer.