September by the numbers

In the month of September in Cocoa Beach and Cape Canaveral, 47 MLS-listed condominium and townhome units closed. Prices ranged from  $39,000 for a short sale, small one bedroom condo two blocks from the beach in Cape Canaveral to $950,000 for a top floor direct ocean Meridian 3 bedroom, 3 bath corner with 11' ceilings and 2508 square feet. Only four sales exceeded $400,000, all direct ocean units. There was one each in Solana Shores, Meridian, Michelina and 3800 Condo. The top floor NE corner unit at 3800 Condo closed for $550,000, exactly half its selling price new in 2007.

Thirteen of the 47 sold units were distressed, 7 short sales and 6 foreclosures. The short sales took an average of slightly more than 4.5 months from contract to close. Keep that in mind if you're looking for a short sale bargain. Also be aware that the lender may ask for more money when they do finally respond. That happened to one of my clients last week. Contract signed by the seller the first week of March and then seven months of mostly silence from the title company doing the "negotiating" until finally we get a demand of more money from the bank. We paid it and closed. The seller received total forgiveness of the debt and a nice bonus check for $3000 under the HAFA relocation program.

The six foreclosures were scattered at six different complexes with the highest price, $210,000 for a nice 4th floor Solana Lakes 3/2. Tightest haircut was a Portside Villas 2nd floor 2/2 with cathedral ceilings that sold for $75,000 just seven years after selling for $233,000 new.

There were six single family home sales in the two cities in the month. Prices ranged from $180,000 for a canal-front tear-down on Bali in Cocoa Beach to $312,500 for a nice canal-front 3/2 short sale on Antigua in Cocoa Beach.

We are still hovering right around historical low numbers of properties for sale. This morning there are a total of 48 single-family homes for sale in the two cities. That's less than a third of what it was just a few years ago. A similar situation exists with condos and townhomes, down about three quarters from the peak. Total inventory is 295 units, 21 of which have not yet been built by their somewhat optimistic developers. Of the total inventory, 12% are either short sales or foreclosures.

A Delta IV rocket launched this morning into beautiful clear blue skies carrying a GPS satellite. The mullet run is still under way along the beach and the streets are almost deserted. It's that magical time in Cocoa Beach between summer and snowbird season. The ocean water is still warm, the air temps are starting to cool down (some days), fishing is on fire,  the golf course at the Cocoa Beach Country Club is deserted and traffic is sparse. If you've not visited our town during October, you've missed one of the best times.

When times are tough, constant conflict may be good politics but in the real world, cooperation works better.  ___Bill Clinton

It IS Different Here! [blast from the past]

[This post was originally published on Halloween Day 2008. It is still relevant and true so I thought, partly motivated by laziness (if that isn't a contradiction), that I'd repost for the newer readers enjoyment.]

There is a long list of thought-terminating real estate clichés that are to the truth as fingernails are to a blackboard. Among the nominees for the best is the title of this post. Other self-serving RE industry creations are "Now's a great time to buy", "Real estate only goes up", "Interest rates are at historical lows", "Buy now or be priced out forever" and on and on. In spite of the transparent purpose of these phrases when used by Realtors about the real estate market, I will venture that "it is different here" has some compelling resonance when said about Cocoa Beach as a community. I'm not speaking as a Realtor, rather, as a resident. Our market is subject to the same influences as other markets across the state of Florida, but, it only takes a drive down A1A through the four or so blocks of "downtown" or a stroll along the uncrowded beach on a beautiful day to realize that the absence of crowds and the small-town sense of community here is a rare commodity to be treasured. I am guilty of taking what we have here for granted but it only takes a moment mired in traffic in any another coastal community in our state to remind me how good we have it. Name one other coastal Florida town that has a "Walk your child to school day" or that has a maximum speed limit of 35 MPH or whose population has not increased in the last 20 years. That is Cocoa Beach. It IS different here. If you're looking to purchase here, do your homework, know what represents good value and bargain hard. Remarkable deals continue to happen in the best little beach town in Florida.

Mosquitoes can be a problem in many areas of Florida but the constant sea breeze keeps the ocean side of the road pretty much free of them and other flying insects. On those few days that the wind shifts around from the west, mosquitoes and other small insects get blown over A1A to the ocean side and tuck into the lee of oceanfront buildings. When this happens, the dragonflies come out en masse to take advantage of the easy meal. The photo at the top is of one of these other-worldly creatures that share our airspace on offshore days like we've had recently.

"We don't see things as they are, we see things as we are."
______Anais Nin

Random September stats

In Cocoa Beach and Cape Canaveral, as of September 20, 2012, more MLS listed properties have closed in the January through September period than in any year since 2005. The trends of recent months continue. The major current dynamics include a declining number of cash purchases, although cash sales still represent the majority at 59% of the total. We are also seeing a much shorter days on market as the inventory contracts. The median so far in September is 44 days on the market with 40% of all sales selling in 14 days or less.

The average selling price of the 35 closed sales was 96% of asking price with six properties selling for full or greater than asking. Only six of the total sold for less than 91% of asking. Keep this in mind when preparing your offers but don't neglect to do your homework and know what a property is worth TODAY before deciding what to offer. Many of the current active listings are unsold because they are overpriced.

Distressed sales continue to be a high percentage (34%) of closed sales, not because there are a lot of distressed listings, but because of the backlog of short sales that contracted earlier this year and last that are just now coming to the closing table. I received notice of approval of two short sales this week, one of them from the first week of March. Only 12% of the current residential inventory in  Cocoa Beach and Cape Canaveral is distressed, either short sales or foreclosures.

Our condo inventory has bumped back up from the recent all-time low of 266 units to 283 this morning. That increase is due almost entirely to 16 new listings in a yet-to-be-built Puerto del Rio building. This building, if they're able to sell any pre-construction units, will be direct Banana River with the larger floor plan 2436 square foot 3/2 units. Asking prices are between $299,000 and $399,000. Of the total condo inventory, 21 of the listings are in not-yet-in-existence buildings.

The mullet run is in full force with millions of finger mullet running south down the beach with plenty of big predators taking advantage of the easy meal. The surf has finally calmed down enough to make surf fishing not quite so challenging as recently. Fishermen using live mullet or mullet-looking artificials in the surf will be rewarded, hopefully with a legal snook. To keep a snook, fishermen must have a snook stamp and the fish must be between 28 and 32 inches nose to pinched tail. Daily bag limit is one fish per person. Good luck and good eating.

"Bigger is not necessarily better but better is always better."  __Jason Goldberg

August breakdown

One of the smaller waves on Sept. 8, 2012 in south Cocoa Beach

A total of 54 MLS listed condos and townhomes closed in the month of August in Cocoa Beach and Cape Canaveral. Prices ranged from a high of $800,000 for a huge top floor Ocean Club 4 bedroom 4.5 bath beauty with 20' ceilings and 4565 square feet to $25,500 for a 1 bedroom, 1 bath Jeannie by the Sea with 396 square feet. Fifteen units sold for $100,000 or less and five closed for $300,000 or greater. Fourteen of the condos were direct ocean and sold in a range of $140 to $278 per square foot. Those who use dollars per square foot to justify offers or asking prices take note. Comps need to be very similar in size and condition to have any validity when the market has this kind of range of selling ratios.

Of the 54 sold units, 16 were distressed, five foreclosures and eleven short sales. That's a higher percentage than exists in the "for sale" inventory because of the number of previously contracted units. The current level of distressed condo inventory in the two cities is at 14%. Without the nine bank-owned units at the Pier Resort the ratio is 10%. There are a total of 272 condo and townhome units for sale this morning, right at the record low number reached a few months ago. The same sparse conditions exist in the single family home market with a measly 49 actively for sale on the Cocoa Beach and Cape Canaveral MLS. Only one of those is distressed, a nine year old 4 bedroom, 3 bath home on the water in Cocoa Beach with a suggested price of $419,900.

This has been a week of excellent surf. We got our first pulse from Tropical Storm Leslie last weekend and it built through the week with some help from Hurricane Michael until the crescendo yesterday when waves were double-overhead plus in south Cocoa Beach with perfect conditions. It's still there as I write this, although smaller, and expected to be fun for a few more days. There are a lot of happy, tired residents today in this lucky little beach town.

"You'd be surprised how little you can live off if you're willing to sacrifice anything that makes life enjoyable." ___Unknown

Moving targets

A shift is underway in our local market. As the distressed inventory has disappeared many sellers' willingness to deal is lessening. Buyers using the recent comps for offer substantiation are not being well received by sellers who have seen recent prices edging upwards. Expecting to buy for the same or less than the recent comps isn't unreasonable in a down-trending market but we are no longer in a downtrend. In a stabilized market, like ours currently, a non-distressed seller has little incentive to match the recent low comps. Inventory is low and there are lots of active buyers. Considering our current conditions, serious buyers should be open to the idea of paying more than the comps suggest. It may not be necessary but flexibility might be rewarded. From 2008, the first year we saw a short sale, until last year, the idea of paying over the recent comps was insanity. Mid-2012, not so crazy. Our  inventory of distressed properties for sale in Cocoa Beach and Cape Canaveral was around 120 in 2008 and 77 of those closed that year. The history of distressed property sales in Cocoa Beach and Cape Canaveral looks like this.

Closed distressed sales

• 2008 -   77
• 2009 - 137
• 2010 - 233
• 2011 - 219
• 2012 - 118 through August 31

There are 74 contracted distressed sales yet to close in the two cities and a mere 43 actively for sale. For buyers hoping to steal a distressed direct ocean condo the list is short. There are two. After burning through 784 short sales and foreclosures in Cocoa Beach and Cape Canaveral since 2008, that chapter of our market story is coming to an end. Total condo inventory is at an all-time low of 275 units. Our total residential inventory this morning including condos and single family homes is 329. Of those 43 are either short sales or foreclosures.  

Take-away: we have transitioned from a declining market dominated by distressed sales to a market state of near-normalcy. It surely took long enough. Biggest issue at this point is the scarcity of desirable listings. A lot of the new inventory that would be coming on the market now got flushed out prematurely by declining prices. Buyers and sellers of real estate, adjust your expectations and strategies accordingly. Good luck in your quest. Surfers, a new swell should start showing by Tuesday with waves expected to peak at about head high on September 5 courtesy of Tropical Storm Leslie. See you in the water.

"...by using a strategy of averaging down, you are guaranteeing that your biggest positions will be in your worst trades." - Zikomo

Warm, green and fuzzy

This post is a little off the usual subject but relevant. For sellers and listing agents; You may want to occasionally visit your property if no one is living there as bad things sometimes happen to vacant property. Of particular concern is keeping the air conditioning set low enough (and making sure it's working) during the warm months to prevent mold and mildew. The photo at the left is from a very nice oceanfront condo that has an asking price of  $400,000. Apparently no one has been inside in a while. The AC is either not doing it's job or it's been set high to save a few dollars on electricity. In either case, the green fuzzy stuff you see on those utensils is mold prospering in the warm, damp conditions. Check your vacant properties often. Speaking of warm and damp, that's exactly the conditions this morning in Cocoa Beach as we are getting the blustery outside rain bands of Tropical Storm Isaac hundreds of miles away in the Gulf.

“The difference between stupidity and genius is that genius has its limits.” - A. Einstein

Dog days and mortgages

Nine of the 24 condos closed so far in August were on the market for less than a month. This is the new normal in our market. One quarter of the closed units sold for less than $100,000 and only three sold for more than $233,000 including a mack-daddy penthouse unit at Ocean Club with 4565 square feet and 20' ceilings that sold for $800,000. Of the 24 sold units, five were distressed. In a radical departure from the trend of the last few years, cash sales lagged financed purchases. Fifteen of the 24 condo purchases were financed and only nine sold for cash.

Lowest price for a direct ocean unobstructed view was $192,000 for a 4th floor Wellington 2/2 in downtown Cocoa Beach. Only 1049 square feet and open parking, BUT, 4th floor direct ocean within a few blocks of over two dozen restaurants and the post office and library for less than $200,000.

A foreclosed, 2nd floor, direct ocean Boardwalk 2/2, also in downtown Cocoa Beach, closed for $231,900. Not a bad price for 1296 square feet and a garage and the ability to rent weekly.

Also in downtown Cocoa Beach, a fully furnished and nicely remodeled 2nd floor Ocean Pines direct ocean2/2 with 1353 square feet and garage closed for $300,000. Note that the selling prices of these units varied in dollars per square foot by around 20% at the extreme.

A new ten year low price at Emerald Seas recorded at $225,000. This was for a direct ocean 2nd floor 2/2 with 1602 square feet. Partially obstructed ocean view from the 2nd floor here because of all the palm trees but still quite a deal, in my opinion, at this price in this complex.

Another 2nd floor direct ocean unit, this one at Mystic Vistas (A building), closed for $280,000. Even less of an ocean view here because of the row of townhomes between the building and the ocean but still a nice 8 year old 3/2 unit with 1775 square feet and garage. Sold fully furnished.

A Spanish Main weekly rental 2/2 on the 2nd floor with direct ocean views over the pool closed for $180,000. This unit unlike many Spanish Main units has a garage. The seller financed part of the purchase price.

A foreclosed south facing 1st floor Royale Towers C building 2/2 closed for $158,000 with 1374 square feet and a garage.

A Royal Mansion 2nd floor 1/1 weekly rental unit with a decent ocean view closed for $147,000. We saw six of these 1/1 units sell below $100,000 in 2010 and 2011 but of the three closed so far this year, the lowest price paid was $127,500.

Six single family homes have closed so far in the month of August in Cocoa Beach and Cape Canaveral. A 3002 square foot 4 bedroom, 3 bath with a three car garage in Discovery Bay in Cape Canaveral sold for $579,000. This beautifully appointed canal-front home is three years old and has a pool and covered boat dock.

A very nicely remodeled canal-front 4/4 pool home in the Cocoa Beach Country Club subdivision closed for $548,000. It has 2550 square feet and a boat dock.

A remodeled 4/2 pool home on Dorset in Cocoa Beach on a corner of the canal with 140' of waterfront sold for $410,000.

An open water fixer upper 4/2 with 2111 square feet on La Riviere closed as a short sale for $242,000 after six days on the market.

We continue to be locked in our summer pattern of calm mornings followed by afternoon thunderstorms. Temps have remained mild in areas close to the ocean as the afternoon sea breeze off the colder than normal ocean serves as a natural air conditioning system. Turtle nesting and hatching also continues at a very intense pace. While offshore last week I saw dozens of adult and hatchling turtles swimming in the calm Atlantic. Some areas of the beach have so many nests that the beach appears to have been the scene of a tractor pull.

"Morality is doing what's right regardless of what you're told.
Obedience is doing what you're told, regardless of what's right."
__________Unknown

July sales

Condo sales in Cocoa Beach and Cape Canaveral slowed significantly in July. After 68 closed sales in May and 62 in June we finished July with only 37 MLS-listed condos and townhomes closed in the month. Single family homes were stronger with 13 closed, two in Cape Canaveral and eleven in Cocoa Beach. Of the 50 total closed residential sales, 12 (24%) were distressed, ten short sales and two foreclosures. There are 286 condos and townhomes for sale this morning and 43 single family homes. There are two foreclosure homes for sale and zero short sales or 5% of the total distressed. There are 18 short sale condos and 21 foreclosures making distressed condos 14% of the total for sale condo inventory.

Sales of note included;

Two Meridian direct ocean units, both 2nd floor. One was an interior 3/2 with 2072 square feet that sold for $580,000. It sold new in 2007 for $672,900. The other was a corner 3/3 with 2487 square feet that closed for $700,000 after just 5 days on the market. It sold new in 2009 for $735,000.

The last unsold unit in the Ocean Paradise building in south Cocoa Beach. This was the 2nd floor NE corner, 3/3 with 2444 square feet and a 2 car garage. Sold for $507,500. If memory serves me right they were asking close to a million for this pre-construction.

Another south Cocoa Beach complex, Magnolia Bay direct Banana River 3rd floor corner 3/3 with 2552 square feet and a 2 car garage closed for $435,000.

Again in south Cocoa Beach, a very nicely remodeled Constellation 2nd floor direct ocean 3/2 with 2126 square feet and a 1 car garage closed for $365,000. This one had been on and off the market for six years beginning at $975,000. When the price finally got down to $380,000 in June they had an accepted contract in 15 days. There's a lesson here.

A Royale Towers B building direct ocean 2nd floor Sand Dollar 2/2 with one car garage sold for $280,000.

A fully furnished "A" building Stonewood direct ocean 4th floor 3/2 with 1588 square feet and one car garage closed for $275,000. The "A" building is the one on the right that looks over the pool to the ocean.

A foreclosed Solana Shores side ocean view 3/2 with 1921 square feet and a one car garage sold for $257,500 after eight days on the market. It had previously been offered as a short sale at steadily dropping prices from $314,000 to $289,000 for over a year without any takers.

Another Royale Towers direct ocean A building 6th floor Sand Dollar 2/2 closed as a short sale for $250,000. It last sold for a shocking $510,000 in 2005 by an owner who doubled his money in three years. Ah, those were the days. This particular contract was taken out in the first right of refusal process by another RT owner.

A tastefully remodeled and fully furnished 3rd floor direct ocean Wellington 2/2 in downtown Cocoa Beach closed for $250,000. It had 1049 square feet and no garage.

Another unit in the resurrected riverfront building behind Sunset Cafe (don't know if they've decide on a name for this condo) sold for $238,000. It was a 3rd floor 3/3 with 2084 square feet and a one car garage.

Yet another Royale Towers unit, this one in the south facing C building closed for $220,000. It was a remodeled and fully furnished 3rd floor 2/2 with 1256 square feet and a one car garage.

Another 3rd floor Wellington, this one the SE corner 2/2 with 1139 square feet and open parking closed for $199,900 after 25 days on the market.

Three units closed in July in the weekly rental Chateau by the Sea next to the Cocoa Beach Pier. Two were ground floor 2/2 units, one a direct east facing with 910 square feet that closed for $190,000 and the other a south facing with 844 square feet that closed for $153,000. A third floor south facing 2/2 with 910 square feet closed for $173,000. All were fully furnished and none had a garage. Of note here is that two of these contracts were taken away from the original buyers by another owner in the first right of refusal process.

A very nicely remodeled ground floor direct Banana River Waters Edge West in south Cocoa Beach closed for $215,000 fully furnished. It was a 3/2 with 1445 square feet and a one car garage.

A fourth floor furnished canalfront Commodore 2/2 NW corner with 1234 square feet and one car garage closed for $175,000.

A top (5th) floor Puerto del Rio sold as a short sale for $173,000 after just four days on the market. It sold new in 2007 for $390,000. It is a 3/2 with 1852 square feet and a full 180 degree wrap balcony and one car garage.

A first floor direct ocean Canaveral Sands 2/2 with 1222 square feet and a one car garage sold for $171,500 after being on the market since early in 2009.

An eleven year old Minutemen Villas 4/4 townhouse on the Cocoa Beach golf course sold for $150,000.It had 1564 square feet and a 2 car garage.

A direct ocean 2 bedroom 1.5 bath North Triton Arms with 1088 square feet in downtown Cocoa Beach closed for $145,000 after 11 days on the market.

A 6 year old Oak Park townhome with 4 bedrooms, 2.5 baths and a 2 car garage closed as a short sale for $140,000. It sold new for $349,900 in 2006.

A south ocean view 2nd floor Siesta del Mar short sale finally closed for $130,000. It has been for sale since January 2008 and has had multiple buyers with accepted contracts along the way but for various reasons, mainly the bank's slow pace, they all walked.A buyer finally went the distance and after waiting just five months this time was able to close. I'm sure the neighbors are relieved.

Somebody got a smoking deal on a short sale 6 year old, 2nd floor Portside Villas 2/2. Closed for $80,000. It has cathedral ceilings and 1211 square feet. No garage. Sold new in 2006 for $224,900.

Two 672 square foot 1/1 units at Starbeach in Cape Canaveral closed for $40,000 and $43,000.

A foreclosed Cape Shores 2nd floor 2/2 with 1038 square feet sold for $62,900. No garage.

Five canalfront single family Cocoa Beach homes closed in the month at prices between $299,000 for a short sale with tiny waterfront on Indian Creek needing work to a remodeled 4/2.5 on Jamaica with pool, boat dock and tiki bar that closed for $365,000. Lowest single family sale was $135,000 for 1404 square feet needing a lot of work. Several nice non-waterfront homes closed between $165,000 and $215,000.

With the tight inventory most good listings that are priced anywhere within reasonable range are selling quickly. If you're looking, get your criteria as defined as possible and be prepared to move quickly when a good one appears. If you plan to buy with a mortgage, talk to your lender before you begin the search. Be aware that at least one of the biggest mortgage lenders is failing to meet deadlines at an alarming rate. Local lender is almost always better than an out of state lender even if that out-of-stater it is your brother in law. Also, be aware that first right of refusal is being exercised a lot recently especially in a few certain complexes. Your buyer's agent, if he's good, will know which complexes I'm talking about. If you need a good buyer's agent call me. Buzz words today: shade, breeze and liquid refreshment.

"Fertile's the word."  ___Matthew McConaughey (expecting his third child)