January breakdown

Property sales in Cocoa Beach and Cape Canaveral continued their strong trend in the month of January with 41 MLS listed condos and townhomes closing in the month. There were seven single family homes sold in the month. Of the 48 total residential sales, 23 were either short sales or foreclosures and 20 of the total sales were for less than $100,000. There were only three sales that exceeded $300,000.

The single family home sales ranged from a low of $105,000 for a small, short sale Harbor Heights 3/2 needing work to $340,000 for a remodeled waterfront Snug Harbor 4/2 with big pool that was also a short sale. The single family homes sold for an average of 87% of last asking price. Very important distinction here is that the percentage was of the most recent asking price. Most of these listing had been reduced from their original asking price, several substantially.

Of the 41 condos closed in January, the average selling price was 91.5% of last asking price. Foreclosures commanded an average of 95.5% of asking price with five sales at or above asking price. Short sales averaged 92.3% of last asking price. Lowballers take note: less than half of all sales went for a greater than 10% discount to asking. Expecting to get some arbitrary high discount to asking price is not an effective strategy. As I've said before, what a buyer should be focused on is the eventual selling price not the amount of discount to asking. My Target/Macy's analogy still stands. The $50 jacket at Target that's not on sale is still a better deal than the same jacket at Macy's that is 50% off plus another 25% off at the register if regular price is $200. Do your homework so you'll know what price represents a good deal rather than measuring the deal by the discount to asking price.

Sales of note included:

Another Meridian oceanfront 3/2 closed for $545,000 or $82,000 less than the price it sold for new in 2008.

The denial and basic training haircut awards of the month both go to a Michelina 4th floor south facing 3/3 . This unit sold for $800,000 new in 2006 and was first put on the market less than a year later in 2007 for $899,000. (Somebody wasn't reading this blog.) It finally sold a week ago and five price drops later for $440,000 after being on the market for a total of 1188 days. It was not a short sale. The sellers were kind enough to leave all the furnishings. By the way, during the 1188 days that it was for sale the listing agent never bothered to post any interior photos of the unit in the MLS listing. I may have to come up with another award for that outstanding performance.

An 11th floor NW corner original condition Xanadu sold for $290,000. These big (2343 sq ft) 3/2.5 units have incredible views over the city of Cocoa Beach to the north and west and have a decent view of the ocean around Stonewood next door. Was only on the market for 12 days.

A tremor went through Crescent Beach Club in south Cocoa Beach when a 4th floor direct ocean 3/2 unit closed for $249,000. It needed work but at $249,000 there's plenty of room for renovations. A candidate for deal of the month.

A big 4 year old Bayport of Cape Canaveral sold as a short sale for $240,000. This 2501 square foot villa has 5 bedrooms, 3.5 baths and a 2 car garage. Sold new in 2006 for $476,400.

A nicely remodeled 2/2 direct ocean, corner unit Windjammer in Cape Canaveral sold for $225,000. Had a 1 car garage and 1196 square feet.

A 1222 square foot, 3rd floor direct ocean 2/2 at Canaveral Sands closed for $222,500 after only 30 days on the market. Had a 1 car garage and sold fully furnished. The unit was in mainly original condition.

A north facing 3rd floor Windrush 3/2 sold as a short sale for $207,500. One car garage and 1565 square feet. Last sold in 2003 for $265,000.

A big, top floor direct river 3/2.5 Diamond Bay of Cocoa Beach sold for $199,000. This 2068 square foot unit was only on the market for 34 days. Had a 1 car garage.

A 4th floor Puerto del Rio 3/2 SE corner with good river views and 1 car garage closed for $175,000 only three years after selling for $280,000. Not a short sale.

A furnished, no-view Ola Grande weekly rental 2/2 short sale sold for $165,000.

One of the newer (1999) Villages of Seaport 2/2.5 units with 1110 square feet sold for $130,000 fully furnished. Open parking.

A south facing 4th floor (ocean building) Conquistador short sale 2/2 with 1101 square feet closed for $130,000. No garage, original condition.

A ground floor poolside 2/2 in the oceanfront Sand Pebbles Cape Canaveral sold as a short sale for $125,000. 1058 square feet and private garage.

A 2/2 lakefront, ground floor Harbor Isles Cocoa Beach 2/2 closed for $120,000. 1248 square feet and 1 car private garage.

Another Pebble Cove direct river 2nd floor 3/2 closed for $113,000. How low can direct river, 1344 square feet w/garage get?

Ouch! A foreclosed 5 year old Portside Villas 3/2, 2nd floor corner goes for $95,000 after just 10 days on the market.

Closing at prices below that Portside sale were another 18 units at prices between $17,000 for a tiny Jeannie by the Sea 1/1 to $87,000 for a 2/2 Rio Vista.

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools."__Douglas Adams

Short sales as comps

Art by Larry Mayo, Mayo Surfboards.

Are short sales good comparables to establish fair value for non-short sale properties? Not really. The recorded sales price is often understated. Many times a bank will require a contribution at closing from a seller or a promissory note for some or all of the deficit. The amount of either of these is not usually noted in the MLS or in the property tax records when the short sale closes . An interested person or agent looking at recent comparable sold properties may see that Comp A closed for $150,000 and Comp B closed for $160,000 and use these to establish fair value for Property C. No matter that the seller for Comp B paid $10,000 to the lender in lieu of a promissory note or that the seller of Comp A signed a promissory note for $25,000. The effective selling price was $175,000 for A and $170,000 for B but our intrepid researcher only sees that the record shows $150,000 and $160,000. Let's not forget that the write-off and subsequent reduction in taxes for the bank are effectively additional proceeds as well. [But, as pointed out by a couple of readers, shouldn't be used as an adjustment to the price of a compared property as tax implications are not exclusive to short sales.].

Our take-away: If you're looking to purchase don't walk away from the fairly-priced property you want because you demand the same price (as recorded) as the short sale unit down the street. As always, bargain hard but realize that the recorded price of the short sale comp you're using to base value on probably does not reflect the entire amount of proceeds from the sale.

"Institutions will try to preserve the problem for which they are the solution."-- Clay Shirky

We have convergence

I mentioned in the year's first post that we would soon see convergence on the graph of yearly sales and inventory of MLS listed condos in Cocoa Beach and Cape Canaveral. What I failed to take into account was that the convergence had already happened if we look at the sales on a monthly basis rather than yearly [extrapolated chart below]. We hit exactly one year's worth of inventory sometime in mid-December. This burn rate has been steadily declining from a high of 25 months supply (all prices) in 2006.

The supply number for luxury (over $500,000) condos has been knocked down even more from a high of over seven years supply to the current less than two years supply based on 2010's sales and today's MLS inventory. Two major factors in this decline was the sellout of Meridian last year and the decline in prices of unsold units pushing many below the half-million dollar mark. Keep in mind that the real number of "for sale" luxury units is understated on the MLS.


So far in 2011 sales have been slow with only 7 closed condos and 2 single family homes. A small 3/2 canal home in good condition on Watts Way in Cocoa Beach closed for $250,000. A remodeled 2152 square foot, 4/2 canal home on a big lot in Snug Harbor with a pool closed as a short sale for $340,000.

In condo sales another Meridian owner has bailed at a loss. This first floor (actually second floor in this building) direct 3/2 unit closed for $545,000 just two and a half years after selling new for $627,000. The original selling broker received a check for $31,350 as this was in the time when the developer was enticing agents with obscene paydays for delivering buyers. You know how I feel about this practice.

A bomb of a deal hit at Crescent Beach Club in south Cocoa Beach when a 4th floor, direct ocean, original condition 3/2 with 1804 square feet and garage sold for $249,000 this week.

Another direct river, 2/2, 2nd floor corner at Cape Shores with open parking closed for $136,000.

At the low end of the price scale a foreclosed small 1/1 unit in the riverfront complex Essex House of Cocoa Beach sold for $28,000.

When two opposite points of view are expressed with equal intensity, the truth does not necessarily lie exactly halfway between them. It is possible for one side to be simply wrong.____ Richard Dawkins

December by the numbers

Shrimp boat at sunrise off south Cocoa Beach.

December 2010 was a busy month for real estate sales in Cocoa Beach and Cape Canaveral. Single-family home sales were dominated by low-price properties with only two of seven closed MLS sales exceeding $200,000. The gem of the seven was a beautiful 4 bedroom, 3 bath pool home with 2787 square feet at the end of a cul-de-sac off Minutemen Cswy. on open water overlooking the islands that sold for $630,000.

51 condos closed in December, the most MLS sales in the month of December since before 2004. (My records only go back to 2004.) This strong finish to the year on the back of the lowest inventory in the same seven year period is positive for the 2011 market. Of the 51, twelve were for less than $100,000 and eight were above $300,000. The sweet spot for activity was between $100,000 and $300,000 with over half of all sales landing in that range.

Sales of note included:

Four units in the new Ocean Paradise in south Cocoa Beach at prices between $560,000 and $435,000. These prices represent discounts of 40% and more off the original asking price. All units were 3 bedrooms and slightly over 2000 square feet.

Jaw-dropper of the month and maybe the year was a short sale at Magnolia Bay. A 3/3 corner unit with 2 car garage and 2455 square feet closed for $295,000. This unit sold new in 2007 for $689,900.

Another short sale haircut was a 3rd floor south facing unit in the oceanfront Sol y Mar also in south Cocoa Beach. This gorgeous 5 year old, 4/3 unit with 2 car garage and 3020 square feet sold new in 2005 for $745,000. It closed two weeks ago for $430,000.

A 2nd floor Meridian direct ocean 3/2 that was purchased new just three years ago for $679,900 was sold for $545,000. Not a short sale but considering the dynamics at this complex probably a smart decision by the sellers even though it was a significant loss for them.

A top (5th) floor, north ocean view 3/2 at the 8 year old Artesia of Cape Canaveral. This unit sold new in 2002 for $306,900. It sold in 2005 for $683,000 and then two weeks ago for $410,000.

A remodeled ground floor, direct ocean 3/2 at Royale Towers sold for $215,000. Had 1445 square feet and a 1 car garage.

A remodeled 4th floor direct ocean Sand Dollar 2/2 at Royale Towers of Cocoa Beach sold fully furnished for $270,000. One car garage and 1374 square feet.

Another 4th floor Sand Dollar floor plan 2/2 just north at Windward East closed two weeks earlier for $265,000. Also with a 1 car garage and 1394 square feet.

Just south down the street another direct ocean 2/2 on the 2nd floor sold at Beach Winds of Cocoa Beach. This 1213 square foot unit was partially remodeled, furnished and with a 1 car garage. Closed the last day of the year for $255,500.

A south side ocean view, 4th floor Sea Oats short sale closed for $205,000. This 3/2 unit was in original but OK condition and came with a 1 car garage.

An east side with ocean view Royal Mansion 2/2 closed for $226,000. Furnished, 1058 square feet, but no garage. Weekly rentals allowed.

Third floor direct ocean 1/1 Sand Dunes with 887 square feet and garage closed for $187,500.

One of the rare townhouses in the direct ocean row in front of Mystic Vistas closed for $185,000. This unit had 3 bedrooms, 2.5 baths, 1509 square feet and sold furnished. No garage.

A foreclosed Solana Lakes 2/2 with 1828 square feet and garage closed for $185,000.

A nice canalfront 2nd floor, 2/2 at Beachwalk of Cocoa Beach sold for $185,000. Sold furnished and came with a garage and private boat slip.

An updated direct ocean ground floor 2/2 at Windjammer of Cape Canaveral sold for $180,000. Had 1196 square feet and a garage.

Two more of the 5 year old, bank-owned Mystic Vistas closed for $150,000. Both 3rd floor, one B building and one A bldg. One with 2010 square feet, one with 1994 sf and both with a garage.

A 2 story, south facing 2/1.5 with 1088 square feet in the oceanfront North Triton Arms in downtown Cocoa Beach closed for $147,000. No garage.

A side view 2/1 in the oceanfront Richard Arms just north of the Pier closed for $145,000. 1013 square feet and no garage.

A nice, updated ground floor direct ocean end unit at Canaveral Sands sold for $145,000 as a short sale. One car garage and 1316 square feet. Sold in 2004 for $385,000. Ouch!

Foreclosed top (5th) floor 2/2 direct river Four Seasons w/garage sold for $140,000.

Two 1/1 Royal Mansion weekly rental units closed for $105,000 and $95,000. The math (cost/income) really starts to make sense at these levels.

I'm not going to get into all the lower priced sales (of which there were many) but there were quite a few deals done at very compelling levels for the properties concerned. If you're looking for a smoking deal, they are still out there, just less to choose from. Inventory at all price levels continues to decrease so we are going to have trouble maintaining the same pace of sales as we move into 2011. As the number of distressed sellers dries up I expect to see shift in seller sentiment over what will probably be a surprisingly short period. It will only take a small notch-up in comparable sales to embolden the remaining sellers. They've been hoping for exactly that for a few years now. Couple that with a decade-low inventory and we could see an unexpected firm-up in prices as buyers become concerned that they've missed the bottom and begin to willingly pay a small premium to the last sale. I'm not predicting a substantial or sustained run-up in prices but it seems the conditions are ripe for a decent little bounce. As always, just my opinion. Do your own due diligence and remember that every market is different. I will most certainly be wrong in the specific as the "bottom" only happens once in each complex and floor plan. Those complex-specific bottoms will be spread over months or years but the sentiment shift will likely happen in a narrow time period and I think in our market it will happen this year. This prediction does not include the newer luxury condo complexes. My forecast for continued pain in that market segment still stands.

"Most haystacks don't even have a needle."___Unknown

Ms. Really Really Really Bad Listing Agent

To the same music as this, Mr. Really Really Really Bad Dancer.

Bud Light presents... Real Agents of Genius
(real american Einsteins)
Today we salute you, Ms. really, really, really bad listing agent
(leave a message, I'll get right back, wink-wink )
On any given day, some optimistic seller wakes up thinking their property might sell today
(doesn't know your voice mailbox is full again)
Hey, you've already got the blazer. Why not get into magic and make inquiries disappear.
(ooh yea)
Who's got time to respond to an offer when Real Housewives is doing an all-day marathon.
(buyers are so annoying)
So crack open an ice cold Bud Light oh Empress of incommunicado. Thanks to your overwhelming personal life another pesky buyer has moved on.

This little ditty was inspired by a recent rash of mind-boggling slacking by a handful of listing agents who are too busy to respond to emails or voice mails from buyers attempting to see or purchase their listings. It ranges from agents who never answer their phones (but actually return messages) to agents who don't respond at all or not until days later. If you have a property listed it would be prudent to occasionally call both your agent's cell and his office just to see if the calls are being answered. Especially important are those busy weekend days. When your agent isn't available, your property is not for sale.

As always, there are many really good listing agents who do their jobs well. However, I think a fair number of listing agents are chosen because they are relatives, friends or friends of of friends, not because they are good at what they do. As long as these agents can occasionally get a listing based on acquaintance and not performance they have incentive to continue unchanged. I am reminded of another example of perverse incentive. In Hanoi, under French colonial rule, a program paying people a bounty for each rat pelt handed in was intended to exterminate rats. Instead, it led to the farming of rats. Giving a listing to an agent without researching that agent's record is akin to rat farming. Consequently, the rats abound.

"You want to learn from experience, but you want to learn from other people's experience when you can." ___Warren Buffett

Happy 1-1-11

Happy New Year, all. The MLS won't be entirely up to date for a few days but it is close enough this first day of 2011 to look back over the year's activity and make a few observations. Total condo sales in Cocoa Beach and Cape Canaveral for the year look to exceed the total for 2006 for the first time since that year and the total was over 15% more than 2009.



Interesting that this happened even as inventory continued the sharp decline that began in 2007. See below. When the red and blue lines converge we are at a one year supply of MLS-listed condos.



Of the reported 493 total condo sales in 2010 (as of this morning) fully 40% were either short sales or foreclosures. Contrast that with the current condo inventory that is only 21% short or foreclosed. It is interesting to note that, of the 110 single-family home sales for 2010, only 25% were short or foreclosures. This is probably directly related to the fact that speculative buying was much more focused on condos during the boom years.

Mortgage rates stayed at historic lows ( below 5%) for most of the year but began a steep climb in late November and are once again approaching 5%.



I'll post a December wrap-up with sales of note and other observations in a few days after the listing offices get around to updating their listings. One prediction for 2011: Considering that condo sales in November and December this year exceeded the numbers for those months in all of the preceding seven years including the boom years of 2004 and 2005, I think we can expect 2011 to be another busy year for property sales in Cocoa Beach and Cape Canaveral.

"if you have to unwrap it, you probably shouldn't eat it."
_____ Bileaf

Short sales and slackers

Short sales have been very much a part of our market for the last two years. The percentage of closed short to total sales in recent months is at or near the historical peak even as inventory of short sales (and foreclosures) has dropped to below 20% of all residential MLS inventory in Cocoa Bach and Cape Canaveral as of this writing.

Every short sale has a life of it's own and, in my experience, no two take the same path to eventual closing or failure. The fate of a short sale rests primarily with the listing agent and her negotiator (if she is smart enough to have one). It is the listing agent's (or her negotiator's) responsibility to gather the paperwork required by the lender(s) and to timely submit complete packages and to follow the convoluted steps from start to finish. A good listing agent will keep the buyer's agent informed of progress, or lack thereof, along the way. Most fail to do this during the long process. I thought I'd relate my experiences with several recent short sales.

Short sale number one had a contract that was executed on December 18, 2009. It was initially negotiated by an attorney hired by the seller which left the listing agent out of the loop. This listing agent is experienced and determined and refused to be kept out of the info flow. She dogged the attorney's office for progress reports when they failed to offer them and shared those updates with the buyer's agent during the first seven or eight months of negotiations. When the attorney's offcie was unable to get approval, the file was handed over to a title company to attempt to resume negotiations. At slightly more than eleven months since the offer the sale closed. Without the listing agent's persistence and sharing of progress with the buyer's agent this short sale would likely not have happened.

Short sale number two also had an attorney hired by the seller involved. The attorney's office was uncommunicative with the listing office and seemed not to understand the process. By the time the bank finally issued acceptance well over a year later the buyers had moved on. Maybe better communication from the attorney could have kept the buyers engaged and committed. Maybe not.

Short sale number three also had an attorney negotiating with the bank. This experienced and competent lawyer was able to get approval relatively quickly except that the bank wanted the seller to contribute some cash at closing in exchange for release from all other liability. As the seller didn't have any cash this looked to be a deal killer but, in this case, the contract price was low enough that the buyer was willing to contribute (with the bank's knowledge) the amount for the seller and the sale closed. Seller walked with no liability and the buyers got a great deal.

The attack of the listing agent:

I have had an unusually high number of encounters with incompetent and lazy listing agents and offices in recent weeks. I am reminded of a post from 2008 in which I talked about the obstacles some listing agents and offices put between their clients and the sale of their property. You can reread it here: Dear Ms. condo seller

Last weekend I was stymied yet again by the same office that keeps all listings' keys in their office and is closed on the weekend. Not a problem when the buyer's agent has advance notice but for those not uncommon times when a client shows up unexpectedly on a weekend and wants to see properties, all of this office's listings are off limits. I won't even go into the 22 mile double round trip necessary for agents from downtown offices wanting to show downtown listings.

I showed a property recently which was easy to show as the showing instructions said to pick up the key in the condo's office and show. Great, except that after showing and deciding to present an offer, there is no answer at the listing office during weekday business hours and the agent does not respond to email AND his cell phone goes directly to voice mail with a full mailbox. The listing agent responded for the first time 48 hours after the offer had been emailed to him and three days after the offer was first presented, no further response.

Another listing agent responded to a call for showing instructions with the tidbit that the short sale unit was "disgusting". We looked at it anyway and decided to make an offer. The agent quickly acknowledged receipt of the offer and then stopped answering emails and phone messages. Next contact was six days after presenting our offer with the news that she had received another offer and we should present our best offer. We revised our offer and presented it with her quick acknowledgment of receipt. She then went back into blackout mode and finally responded two days later with an email that she had two offers and was "processing" them. We are now 10 days since the initial offer and she is incommunicado. We may need an intervention from her broker to force her to do her job. However, having displayed her incompetence in the listing process, we are concerned that she will have the ability to close a short sale. I suspect she won't.

Unfortunately, these are not atypical experiences. If you are a seller, it is a good idea to ask your agent how your property is to be shown. Requiring buyer's agents to go on a scavenger hunt to get the keys is only effective as a deterrent to a sale. If you have a tenant in your property, have a talk with your tenant before listing and make sure they understand that they must allow showings. I can' tell you how often I call to show a tenant-occupied property only to get some weak excuse from the tenant why today isn't a good day. In it's most extreme case I have known tenants to change the locks so that the listing agent's keys wouldn't open the door. You may think your house is for sale when it's really not.

Have you called your listing office today? How about the listing agent? If buyer's agents can't get through to your agent or her office, you are less likely to sell. Guess which days are busiest for showings. Saturday and Sunday. Guess which days real estate offices are most likely to be closed. Yep. Pick up the phone and call your listing office on the weekend. Call your listing agent any afternoon on her cell. If you're not getting answered buyers agents aren't either.

If yours is a short sale it is critical that your listing agent or her negotiator be experienced in the process. Your sale may be complicated enough that you'd be better off with an attorney. If you decide to use an attorney for the process be sure to hire one that specializes in distressed sales. Not all attorneys are competent in short sale negotiations. A good one should be able to get you out with less post-sale liability.

A last comment about listing agents; There are many good ones. I find myself across the closing table from the same ones again and again. I respect and admire many of my listing colleagues and appreciate their professionalism. You know who you are. It is the not-small number of incompetents who make the road bumpy for their clients and those of us representing buyers that I have a problem with. Match one of these with a difficult and unreasonable seller and you have a headwind of epic proportions.

We've enjoyed a few days of beautiful December weather after the bitter cold snap earlier this week. The shot at the top was Thursday this week, windless and in the 70s. Happy and safe holidays to all.

I can see every monster as they come in.__Truman Capote

November Wrap-up

Warmer days.

November was a good month for luxury condo sales in Cocoa Beach and Cape Canaveral. According to the Cocoa Beach MLS, out of 39 total condo and townhome sales, four were for more than a half million dollars and six others were at $300K or above. Seven of the ten highest priced closings were cash deals. Eight of the 39 were short sales and nine were foreclosures. Only three of the 17 distressed sales exceeded $200,000. There have been only 18 closed sales of condos exceeding $500,000 so far this year.

Highlights in the non-distressed sales included;

Three brand new units at Ocean Paradise in south Cocoa Beach closed this month with three more under contract and only four units left for sale in the building. All the action here happened after the last big price cuts on these units in late September. One unit sold at a $200,000+ discount to asking price.

Two big (2819 square feet) corner units at Solana Shores in Cape Canaveral closed one day apart for $555,000 and $565,000. Forth and third floor respectively.

A fifth floor corner at Emerald Seas closed for $395,000. It was a 3 bedroom, 2.5 bath with 2394 square feet and sold fully furnished.

The second floor south unit at the four year old Almar in south Cocoa Beach sold for $380,000. There are only two units per floor in this small direct ocean building. This unit has 2713 square feet, 4 bedrooms, 3.5 baths and a 2 car private garage.

A third floor direct Banana River southwest corner unit at the four year old Garden Bay in Cocoa Beach sold for $340,000. This unit has 2600 square feet with 3 bedrooms, 3.5 baths and a 2 car garage.

A 2nd floor direct ocean 2/2 at Sea Era Sands in Cape Canaveral closed for $247,500. 1409 square feet and garage.

Two units sold in the month at Solana Lake in Cape Canaveral. Both were 2/2 units and closed for $184,000 (third floor, 1698 sf) and $208,000 (fifth floor, 1828 sf).

A nice 2nd floor, 2/2 Spanish Trace direct river unit closed for $135,000. This complex is right across the road from the CB schools and a short walk to the Country Club. Carport instead of garages.

A fully furnished direct river, 2nd floor end unit at Cape Shores in Cape Canaveral sold for $126,000. Open parking, 2/2 with 1082 square feet.

A small but nice 2 bedroom, 1 bath unit at Twin Palms in Cocoa Beach 2 blocks from the beach sold for $67,000.

Among the distressed sales these were interesting;

Top floor (5th) Cape Winds southeast corner direct ocean 2/2 closed as a short sale for $250,000 eleven months after the contract was signed. Cape Winds is one of the very few complexes that allow weekly rentals.

A side view 2nd floor Michelina 3/3 closed as a short sale for $299,900. Four years old, 2411 square feet with garage. This one only took five months from contract to close.

A very nice top floor 2/2 with 1409 square feet and garage at Sea Era Sands in Cape Canaveral sold for $245,000. This short sale closed quickly with only two months from contract to close.

Another short sale closed at Diplomat of Cocoa Beach. This was a ground floor 2/1 with open parking that went for $74,900. Needed a little TLC. This one was three months from contract to close.

Two Mystic Vistas foreclosures closed for $194,000 and $150,000. Both units were 2000+ square feet. The lower priced sale was a never-sold unit taken back from the developer while the higher priced unit sold new in 2007 for $544,900. Ouch!

A foreclosed direct ocean, top floor 2/2 unit at the 33 year old Crossway in Cocoa Beach closed for $155,000. Open parking and 1250 square feet. It sold five years ago for $370,000. Another foreclosure with the same floor plan on the same floor in the building also sold in November for $190,000. It last sold in 2004 for $360,000.

Last of our distressed sales was a foreclosed five year old Majestic Bay townhome in Cape Canaveral. This big 2307 square foot, 3 bedroom, 3.5 bath unit has a 2 car garage and sold for $128,000. Sold new in 2005 for $308,900.

Condo and townhome inventory in all prices stands at 482 this morning with 77 of those offered as short sales. There are only 24 foreclosures in the mix. Much of the rest of the current inventory is overpriced which is why it's still there. The supply of distressed sales continues to shrink. Prices of non-distressed properties have continued to drift downward although at a slower pace. For established older complexes and single-family homes I don't foresee a whole lot more downward movement in average selling prices barring total economic collapse. There is a reservoir of pain yet to be realized in the higher price range especially in the newer buildings. As always, I could be wrong. Pray that I'm not.

“No matter how cynical you get, it’s impossible to keep up.” _______________Lily Tomlin