Larry's Take on the Cocoa Beach Florida Real Estate Market

Non-repeating history

noreply@blogger.com (Larry Walker) — Tue, 03 Nov 2009 13:47:00 +0000

I'm back after getting the boat to Abaco from Florida. Photo above from yesterday morning at the home mooring off Lubbers Quarters with Elbow Cay in the background. This 42' Lagoon Hybrid sailing cat is now available for charter, either bare boat or captained in the crystal clear waters of Abaco from CruiseAbaco.com

Our little real estate market has been on fire this normally slow time of year. After setting a four-year record for closed sales in the month of September, October followed suit with another four-year record. [EDIT] Due to a glitch in the MLS, the numbers I reported yesterday were not accurate. The charts are now corrected. October was unseasonably strong but not our biggest month of the year for closed condo sales as I reported yesterday. It was, however, the busiest October since 2005. The bulk of the activity, as has been true all year, was concentrated in the sub-$300,000 range and short sales and foreclosures accounted for just less than a quarter of all closed sales. November looks to continue the trend with both barrels loaded with pending sales. During the last 13 days, 36 condos and townhomes have gone under contract in Cocoa Beach and Cape Canaveral as reported on the MLS.

Foreign buyers taking advantage of the weak US dollar are part of the recent activity. Without making any predictions, the evidence suggests that our market is stabilizing. Even as some prices drift lower, some condo complexes have seen closed sales notch upward. Will prices resume the downward slide after a false recovery? No one knows but with prices in many cases well below 50% of the peak, buyers are stepping in. Markets work on supply and demand and demand is at a four year high right now. First chart below is 2008 and 2009 only.

Notice in the four year chart below that October 2009 has the highest number of sales of any October in the last three years. A trend with legs? We'll see. I'm encouraged.

"History is more or less bunk. It's tradition. We don't want tradition. We want to live in the present and the only history that is worth a tinker's damn is the history we make today."
______________Henry Ford

I'm good.

noreply@blogger.com (Larry Walker) — Sat, 17 Oct 2009 12:54:00 +0000

Space shuttle launch as seen from the International Space Station.

September's unseasonably strong sales trend is intact halfway through October. As of this morning twenty condos and townhomes listed on the Cocoa Beach MLS have closed in the two-city market, eight of them in Cape Canaveral. Last October saw only 23 total closed sales in the month. We look to easily trounce that number this year with 31 newly accepted contracts since the 1st of October in addition to those already pending. Half of the closed condo sales so far are for less than $180,000 with only one for over $500,000. The price trend continues to creep downward in most instances with a few notable exceptions.

There have been three single-family home sales in the two cities so far, highest price; $226,000 for a nice, updated 3/2 on Curacau in Cocoa Isles.

A top floor Mystic Vistas "A" building, east-facing, 3/2, furnished, closed for $403,500, twice what lesser view units have closed for recently in the complex.

A 3rd floor north corner, 3/3 Meridian, also furnished, sold for $725,000.

A top floor never lived in Garden Bay 3/3.5 closed for $410,000 or about $200,000 off the original asking price.

A 4th floor south view River Bend 3/2 in south Cocoa Beach sold for $240,000 as a short sale. Incidentally, only two of the twenty closed sales this month have been short sales, a surprising trend I noted last month.

A very nice, four year old Bayport 3/2 townhome with 2-car garage in Cape Canaveral closed for $205,000.

The uncertainty of association health was apparently mitigated enough by a super-low price on a foreclosed South Beach Keys unit that someone was willing to step up and take the risk. This direct Banana River 3/2 unit with 2-car garage in south Cocoa Beach that sold new in 2006 for $495,000 went for a shocking $175,000. Expect more news from this small complex.

A Majestic Bay townhouse in Cape Canaveral that sold new in 2005 for $274,900 sold as a short sale for $140,000. Not bad for a 4 year old townhome with 2-car garage.

And, a Brisa del Mar condo conversion on Ridgewood Ave. that sold for $200,000 in 2005 closed for $90,000.

I was sitting in the water recently on a small, glassy day on a 7'0" fun shape when my 15 year old neighbor paddled over and asked why I wasn't riding my longboard. I said, "I'll ride it if you'll go in and get it for me." Laza looked at me like I'd suddenly sprouted antlers, said, "I'm good" and paddled off for saner waters. Kids.

I'm off on a boat delivery tomorrow and will be incommunicado for a week or so, weather depending. In the interim, Danielle can be reached at danielle@walkerbagwell.com for any issues or inquiries. As a wise man once said, "All work and no play makes Jack a dull boy."

A tale of two sales

noreply@blogger.com (Larry Walker) — Thu, 08 Oct 2009 12:25:00 +0000

Short sale craziness continues. The short sale team in my office took two short sale listings a few days apart in August. At the time, neither seller had done any preliminary work with their respective lenders. The team went to work getting the hardship and other required documentation together from the sellers for submission to the lenders. Both properties got offers shortly which were submitted within days of one another to the lenders along with all requested documentation. Both sellers had legitimate hardship. Forty days later, one sale was approved in writing and ready to close while the other lender was still asking for more and more documentation. The seller confessed yesterday that he had continued to make mortgage payments the whole time that we were trying to negotiate a short sale with his lender. Asking a lender to approve a short sale while the mortgage is current is like panhandling in an Armani suit. Chances of success are slim.

The take-away: If a property owner has the resources to stay current on the mortgage and does so, the lender will be way less motivated to agree to a short sale or modification. Why should a lender write off tens of thousands of dollars when they can just continue to accept timely payments? Any reader considering pursuing a short sale needs to understand that hardship must be real and able to be proven. Prepare to be asked for documentation similar to that required to obtain a new loan. Without proof of hardship, chances of approval approach zero. With proper documentation, real hardship and an experienced short sale negotiator a seller stands a good chance of successfully selling a property short.

"You have to learn the rules of the game. And then you have to play better than anyone else."
___________Albert Einstein

Wake up - September's finished

noreply@blogger.com (Larry Walker) — Fri, 02 Oct 2009 11:51:00 +0000

How bout that graph? September condo sales in Cocoa Beach and Cape Canaveral spiked up considerably over the previous year with 44 closed MLS sales of condos and townhomes during the month. There were four closed single-family home sales during the month, all in Cocoa Beach. One surprising stat was the fact that, of the 44 condo sales, only five were short sales.

The lowest price condo sale was $13,800 for a foreclosed 1/1 Golden Gate Manor unit in Cape Canaveral that sold in 2006 for $82,500. That's a mind-numbing 83% off the peak. The highest price condo sale was $555,000 for a never-lived-in Michelina 5th floor corner, 3/3, 2524 sq. ft. This same unit was asking $849,500 just one year ago. It was the only condo sale for more than $500,000 in the month. The adjacent, slightly bigger Michelina unit (not a corner) also closed for $450,000 or $177 per square foot. Not bad for brand new oceanfront, even if side view.

A 7th floor, 3/2 Crescent Beach Club in south Cocoa Beach closed for $325,000 which bumps the comps down slightly for that building which is well into a major and very expensive concrete restoration project.

Harbor Isles was on fire in September with five closed sales. Not surprisingly, the ever-present Betty Siegel was involved in three of those sales. Looking back over the stats for the year, there have been ten MLS sales in Harbor Isles. Of the ten, my office has represented one or both sides of eight of those transactions with Betty being involved in six. You go, girl.

Another Hacienda del Mar direct ocean 2/2, 4th floor with garage sold for $248,500. It was in original condition.

I was able to close a short sale at Cape Winds of a direct ocean ground floor 2/2 with the wide patio for $210,000, a new low for direct ocean units in this very popular complex. With this sale and two other pending short sales there, the other overly optimistic sellers will now have to come to terms with the new reality.

There were three sales in the month of 2 bedroom units at Ocean Woods in Cape Canaveral at prices from $129,000 to $155,000.

In head-scratching news, in a year in which a total of only 20 units have closed for over $500,000 ( half of those at The Meridian) eight pre-construction units in an unbuilt oceanfront building in south Cocoa Beach popped up on the MLS this week at prices from $800,000 to $1,050,000. The same developer is offering 16 other units in four different completed new buildings on the MLS, most or all having been reduced substantially in price. A+ for optimism.

Fishermen, the mullet run is back on in force. There are acres of mullet moving south along the beach with packs of predators in attendance. This is the best time of year for fishing from the beach with opportunities to catch snook, Spanish mackerel, bluefish, kingfish, trout, redfish and tarpon among others. Take advantage if you enjoy fishing but, whatever you do, enjoy October for all the other reasons that make this month my favorite of the year in Cocoa Beach.

"As my memory rests but never forgets what I lost
Wake me up when September ends."____Green Day

No one the wiser

noreply@blogger.com (Larry Walker) — Fri, 02 Oct 2009 11:46:00 +0000

I often write pieces that never see the light of day here on the blog. The piece that I wrote yesterday and intended to post today will become one of those lost letters. In my next-day read this morning the account appears somewhat inflammatory and would probably have caused some ruffling of feathers and almost certainly some backlash. Perhaps less specific references to the guilty parties will make the story acceptable. Here goes.

There once was a broker who ran a successful real estate office in a cute coastal town. One of the broker's trusty agents found an opportunity to pocket $325 of his client's money in a property management transaction with no one the wiser. The client from whom the money was stolen found out quite by accident a few months later about the theft and confronted the agent. The agent played dumb and referred the client to his broker for resolution. The broker defended the agent and refused to return the client's money. The client elected not to pursue the matter. The larcenous agent continued his career with now-obvious support for his business style and the broker rose to a more prominent position in the local real estate community and continued to prosper. No one the wiser.

"The greatest way to live with honor in this world is to be what we pretend to be."
_____________Socrates

Mid September Update

noreply@blogger.com (Larry Walker) — Tue, 22 Sep 2009 12:51:00 +0000

Thanks to all who chimed in on the last post. Closings are slow but plugging along with 20 closed condos and townhouses so far in the month of September in Cocoa Beach and Cape Canaveral. Sales ranged from $32,000 for a foreclosed, 464 sq. ft. 1/1 condo conversion in Cape Canaveral to $335,000 for a brand new, 3rd floor, direct river, 3/2.5 with 2210 sq. ft. at Garden Bay in Cocoa Beach. Other sales of note closed so far included;

Ground floor 2/2 Cape Winds direct ocean for $210,000

2nd floor, direct river, Harbor Isles 2/2 for $220,000

16th floor, direct ocean Stonewood 2/2, very nice for $315,000

6th floor, south ocean view Royale Towers 2/2 for $225,000

There have been three single family homes sold so far, all in Cocoa Beach. They ranged from a small, trashed 3/2 short sale on Samar that sold for $110,000 to a direct river 4/2 on Bali that closed for $389,000.

Checking the MLS this morning I find a total of 131 pending or contingent residential properties in the two cities. Over half of these contracts are short sales. Of 716 total active residential listings, only 94 are short sales. This skew between offered and contracted numbers makes it clear that the action in MLS-listed properties is heavily concentrated in the distressed properties. If you're hoping to take advantage of the market, don't make the mistake of only looking at distressed properties. There are a few sellers who understand the market dynamics who have priced their properties accordingly without the hassles of the short sale process. On the other hand, if you have a good property contracted as a short sale at a good price and are losing patience because of the length and opacity of the process, be strong. Unless you find something better in the meantime, your patience may be eventually rewarded with approval. We have had a flood of short sale approvals recently after months of very little contact from the lenders, so, be aware of the frustration of the process, be patient and have a Plan B in case you don't get approved.

Snook are still being caught in the surf and the mullet run hasn't really peaked yet, so, there's plenty of opportunity for everyone to get out there on the beach and catch a great dinner.

"The unspoken word never does harm."_____Lajos Kossuth

Blurring the Ethical Line

noreply@blogger.com (Larry Walker) — Mon, 14 Sep 2009 11:55:00 +0000

eth·i·cal Pronunciation: \ˈe-thi-kəl\
1: conforming to accepted standards of conduct <ethical behavior>

Rhetorical questions:

1. Assuming no dishonesty, is it ethical for a listing agent to use all of her skills, experience and knowledge to try to get her clients the highest possible price at the best possible terms? Is the answer the same if this behavior contributes to rising prices, harming future buyers?

2. Conversely, also assuming no dishonesty, is it ethical for a buyer's agent to use every bit of his skills, experience and knowledge to obtain the lowest possible price at the best possible terms for his client? Is the answer the same if this behavior contributes to declining prices, harming future sellers?

I ask these questions for a reason. I represent a lot of buyers. In my representation I always use every scrap of market knowledge and all my negotiating skills to try to do the best possible job for my clients which usually means the lowest possible price at the best possible terms. I do this with honesty and fairness to both sides of the transaction. My efforts in recent years have often been a part of the chain of lower and lower selling prices in many complexes and neighborhoods. It was reported to me this past week that my aggressive representation of my clients, buyers all, was being characterized by at least one Cocoa Beach citizen as unethical because it has contributed to lower prices in our market. While the premise seems preposterous, at least to me, I welcome comments here on this blog from anyone who has some insight to share. I certainly know that I tend towards the aggressive in my negotiating but I feel strongly about my character and ethical standards and, in this case, take offense to the accusation. I will take all comments with an open mind. Thanks for reading. Back to our regularly scheduled programming with the next post.

"If it is not right do not do it; if it is not true do not say it."
___________Marcus Aurelius

August sales

noreply@blogger.com (Larry Walker) — Wed, 09 Sep 2009 13:03:00 +0000

Sorry for the break in posts. I avoided the Labor Day crowd in the mountains of North Carolina.

The numbers are in for August. As you can see from the graph above, we have taken the first step off the seasonal sales cliff. After trending above last year's numbers in June and July we had a total of 27 closed MLS-listed condos and townhomes in Cocoa Beach and Cape Canaveral in the month of August, slightly behind last year's 30 units closed. The sales ranged from $37,000 for a tiny Lamp Post efficiency in Cape Canaveral to $2.01 million for the entire top floor of Ocean Cove in south Cocoa Beach. This particular brand new unit was 6000 square feet with 4+ garage spaces and a private boat slip across the street on the Banana River. Shortly after this sale closed, the developer slashed over a million dollars off the prices of the remaining unsold units in the building.

Sales of note included a Meridian resale that went for $575,000, over a hundred thousand less than the new purchase price just two years ago. In south Cocoa Beach a fifth floor Crescent Beach Club south corner unit closed for $425,000. It was a three bedroom unit with 2278 square feet. Next door at the Constellation a 6th floor unit with 2419 square feet sold for $395,000 and a 5th floor south corner beautifully totally remodeled unit at Coral Sands went for $405,000.

A foreclosed Perlas del Mar in Cape Canaveral sold for $165,000, a remarkable $285,000 less than the new purchase price two years ago. A 2/2 townhome at Villages of Seaport closed for $107,000 as a short sale.

There were only four closed single-family home sales in the month, none for more than $200,000 and none on the water.

For those looking for direct ocean units in the lower price range, I can find 29 units this morning with at least two bedrooms asking under $300,000 that are east facing. Over-priced listings still dominate the declining inventory but gems are there for the patient. If you'd like a daily dose of new listings, price drops, sales and market news of note you can follow my Twitter feed. In case you missed it, snook season has opened and the fish are already on the beach feeding on the early schools of mullet making their annual run southward. Use a cast net to catch mullet from the beach, put one back out with a weight to keep it on the bottom and hang on for some of the best eating in the ocean.

Comments are welcomed on any of the posts here.

"When a true genius appears in the world, you may know him by this sign, that the dunces are all in confederacy against him." _________Jonathan Swift

If Willy Loman had a blog

noreply@blogger.com (Larry Walker) — Mon, 31 Aug 2009 11:41:00 +0000

More of our great surf recently. Laza tags a screamer with typical nonchalance.

I continue to be amazed at the disingenuous hype being dispersed by others within my industry. I can't go to a real estate blog or website without reading the same old crap intended to entice buyers into making a move and purchasing a property. Folks, you need to be very careful choosing a buyer's agent to assist you in your search. There are plenty of warning signs that should give you pause, chief among them, the absence of cautious advice and/or undiluted enthusiasm about the market. If your agent is spending too much energy convincing you that everything is great with our market, you need to reconsider his motivations and sincerity.

and ... reason Number 1 that your agent may not be a good choice: He makes a blanket, unqualified statement containing any variation of the words, "Now is a good time to buy." It may be a good time to buy some isolated properties, but, as I research the available listings on our MLS, I find far more properties that are severely over-priced than those that may qualify as a "good buy". If you accept that well-worn phrase and come into our market thinking that it applies to all properties, you may well become the next bagholder.

Having said all that, now is a good time to sift through the available properties looking for those good deals hidden among the clutter. Arm yourself with knowledge of recent sales that are comparable to the property type you're seeking and keep your focus. Don't chase something you don't want just because it's a deal or because you're impatient. Your search may have started with direct ocean units and became diverted to side views because of the lower prices. As I've said before, that forty grand you saved on the purchase price might not taste as sweet when you're sitting on your side-view balcony staring at the building next door with a cold north wind in your teeth. Patience has been rewarded this year.

Speaking of patience, let's discuss short sales. A buyer in a short sale is at the total mercy of the listing agent and, in many cases, completely in the dark throughout the process. I have worked with some real pros on the listing side (you know who you are and I thank you) and with some that are completely clueless to the process and have a possibility of closing a deal approaching zero. In addition to the listing agents who can't close a short sale, there are short sale listings in our system that are, I suspect, just bait to get the phone or in-box lit up. Proceed with skepticism and caution in this part of our market and don't even consider offering on a short sale unless you are willing to wait indefinitely. If you do put in an offer on a short sale, know that closing is not certain. Keep looking while the bank twiddles it's thumbs. It's possible to find non-short sale properties at the same levels as many of the short sales without all the hassles.

MLS inventory August 31, 2009 Cocoa Beach & Cape Canaveral

Condos, all prices_____635 - 22 sold so far in August
over $500,000_________78 - 22 sold since New Year's Day
Single family homes___108
over $500,000_________43

"Expect ALL estimates of time to be overly optimistic."_____Larry

What a day it was

noreply@blogger.com (Larry Walker) — Mon, 24 Aug 2009 14:43:00 +0000

Sunday, August 24 in south Cocoa Beach. It was like this all day except for about an hour during which we endured an intense electrical storm that chased everyone from the beach. Of course, we locals were back in the water by 5 PM when the sky went blue again and the tide ebbed. The shot above is of one of my friends and her son sharing a wave out back about midday. You can click on the photo for a larger image.

Note: I have turned on comments for the blog for the first time since it's inception in 2005. Feel free to leave comments on any posts. Vulgarity will not be tolerated but difference of opinion is welcomed.

The World is a Vampire

noreply@blogger.com (Larry Walker) — Sat, 15 Aug 2009 14:51:00 +0000

Delta rocket launch, sunrise Aug. 17, 2009

We're halfway through August and, as expected, activity has slowed. We've had 12 closed sales from the Cape Canaveral and Cocoa Beach MLS, 11 condos and one single-family home. The home was a small 3 bedroom, 1.5 bath short sale on south Orlando Ave. that closed for $139,000. The sold condos ranged from $79,900 for a foreclosed, non-waterfront 2 bedroom 2 bath unit at Costa del Sol to $425,000 for a 5th floor direct ocean, southeast corner at Crescent Beach Club in south Cocoa Beach. This unit had 2278 square feet with 3 bedrooms, 2 baths and a massive wrap balcony.

An interesting sale was the 2nd floor, southeast corner at Palmas de Majorca in downtown Cocoa Beach. This 3/2 unit had been on the market for 731 days, always overpriced and was down to $549,000, the most recent still-too-high asking price when something enticed the seller into accepting $400,000. Maybe he read my "Breakdown, go ahead and give it to me" post or perhaps the appraisal came in low. At any rate, for $186 per square foot, this one was a deal. The too-close boardwalk traffic intruding on the privacy from the 2nd floor probably contributed to the low price. It was, beside that shortcoming, a very nice unit.

Another good deal was a Constellation 3/2, this one on the 6th floor with 2419 square feet and panoramic views of the ocean and the Banana River across the street. Sold for $395,000 or $163 per square feet. Don't expect to get a smaller unit for these $/sqft numbers as large size contributes to the low ratio.

Someone picked up a 2/2 direct river, 2nd floor Sunset Harbor for $146,000. Needed some updating. Another foreclosed 4 bedroom, 2.5 bath Perlas del Mar in Cape Canaveral sold for $165,000. It sold new two years ago for $450,000.

The 3rd floor south ocean view Cape Winds, 1 bedroom 2 bath unit that was offered as a short sale for $150,000 got a contract in just seven days.

That's it for now. New listing activity is slow as are sales and there have not been a lot of compelling new offerings. That is normal for this time of year. If the short sale bottleneck opens up we could have a surge of closings which would be welcome. I received lender approvals this week for two short sales that have been in the system for 105 and 75 days while I have four others that have been leapfrogging desks for up to 150 days without approval. Go figure.

"Despite all my rage, I'm still just a rat in a cage."
_____________Billy Corgan

Does this make my butt look big?

noreply@blogger.com (Larry Walker) — Sun, 09 Aug 2009 12:22:00 +0000

Rocky shoreline in Satellite Beach at low tide. There are no rocks in Cocoa Beach but as one heads south, rocks are first encountered at Patrick Air Force Base and the rocky shore continues all the way to Indialantic.

Does this make my butt look big? Everyone knows there is only one correct answer to this question no matter who is doing the asking. There is another popular question that also has but one answer. That question is one that is posed to loan officers and mortgage brokers every day, "Do you foresee any issues with my getting a loan on this property?" Day one in loan officer school the class is asked this question and then instructed to shout in unison, "No, not at all." over and over until the phrase is firmly imprinted on their brains. Then, when "the question" is posed by an actual borrower, the neuro lingual programming takes over without any conscious thought and "the answer" comes forth confidently. Doesn't matter that the Florida condo that the borrower is asking about is 1800 miles away from the lender's office or that the last Florida condo loan that the loan officer did was in 2006. "We can do it" he says with a confident smile. Right. He can do it until he can't and that usually doesn't becomes evident until well down the road towards closing.

All borrowers who are buying a Florida condo would be well advised to talk to a lender in the market in which they are purchasing. There are issues with Florida condo loans that lenders will not encounter anywhere else. A great credit score and previous relationship with a distant lender might not be enough when the hurdles to closing start appearing. A good local lender who is active in our market will have knowledge about Florida-specific loan issues and will likely have encountered many of the sure-to-happen problems with previous loans. That knowledge allows him to be proactive rather than reactive in addressing these issues. Anticipating and working to solve an issue before it presents itself can be the difference in making a closing date or not.

Disclaimer: I'm not saying out-of-area lenders can't close deals here. It happens all the time, but, from plenty of personal experience, I can say without hesitation that the odds of having problems are increased when the lender is not local. Just don't expect a loan officer to admit that his performance out of state may be compromised by lack of local experience. Remember the NLP "answer" from class. I can close deals and represent buyers anywhere in the state of Florida but I don't venture outside my market because I can't do the best possible job for my client in a market I don't know. Greed and false confidence encourages many realtors and lenders to venture out onto the thin ice, often to their client's detriment. Be skeptical when yours fearlessly claims proficiency in an unknown market.

/cue theme song (everyone sing along)__ "Knowledge is power..."

"Education is when you read the fine print. Experience is what you get if you don't."_____Pete Seeger

Dear Miss Cleo, What's next?

noreply@blogger.com (Larry Walker) — Tue, 04 Aug 2009 14:38:00 +0000

We had a total of 37 closed condo and townhome sales in Cocoa Beach and Cape Canaveral in the month of July as recorded in the MLS as of this morning. The number, as always, will likely creep up slightly as a few tardy listing agents record their sales. Lowest sale was a foreclosed Pearl of the Sea one bedroom unit at $45,000 and the highest was $740,000 for a mac-daddy 7 year-old penthouse unit at Ocean Terraces in downtown Cocoa Beach. It was the entire top floor, 3464 sq ft with four bedrooms, three baths and a 2 car garage.

There were three sales over a half million dollars, the most in a single month so far in 2009. Only eight of the sales were for more than $268,000. Short sale closings were off with only five closed short sales in the month. That doesn't necessarily mean that short sale activity has slowed. Anecdotal evidence from my desk and conversations with other agents suggests that there are stacks of short sales in limbo with the lenders taking longer than ever to reach a decision. If they ever start moving on the short sale process we could see a surge in closed sales.

The "smoking deal" of the month was a short sale at Lookout Point three blocks from downtown Cocoa Beach. A 2 bedroom 2 bath unit with boat slip and private garage closed as a short sale for $145,000. The busiest complex of the month was Shorewood in Cape Canaveral with five closed units followed by Xanadu in Cocoa Beach with three closed.

Inventory is down to 639 condos and townhomes with 95 of those offered as short sales. There are 110 single family homes currently offered in the two cities. Only three of those are short sales.

Miss Cleo has advised that we can expect, barring a surge in closed short sales, activity to decline through December following our normal trend. If you hope to sell this year, make your selling decisions accordingly.

"When your arm gets hit, the ball is not going to go where you want it to."
_____________________John Madden

Hard Decisions

noreply@blogger.com (Larry Walker) — Fri, 31 Jul 2009 11:55:00 +0000

Another hot Mayo board. This one is a 6'2" quad in Coke bottle tint.

I have talked to several distressed property owners over the course of the year who have found themselves in the undesirable position of owing substantially more on their mortgages than their properties are worth. Whether they bought at the peak or refinanced with cash out, they now struggle with their obligation to continue to pay off a loan that's far more than the property would bring in a sale. Many feel an ethical obligation to continue to pay regardless of the impact on their personal finances. Even some of those not so ethically encumbered continue to pay for fear of ruining their credit or even shame among their peers should they decide to walk away. Those who find themselves in this position have three basic choices; continue to pay, pursue a short sale or simply walk away. Without taking any position on the ethics or morality of choices two or three, I will point the reader towards a very interesting discussion of the subject at Mish's blog. Excerpt below.

"Mortgages are not ethical documents, they are legal contracts. The typical residential mortgage for an owner-occupied home gives the borrower two options: pay on time and in full, and keep paper title to the house, and full entitlements to any appreciation upon its later sale after the mortgage is satisfied; or, stop making payments, and hand the keys back to the lender. Morality and ethics don't even enter the equation. Either option is perfectly legal for the borrower, and the only criteria should be business-based. All the ethics you need are contained within the four corners of the pages of the mortgage contract."

"It doesn't matter which side of the fence you get off on sometimes. What matters most is getting off. You cannot make progress without making decisions."_________Jim Rohn

Breakdown, go ahead and give it to me.

noreply@blogger.com (Larry Walker) — Sat, 25 Jul 2009 13:07:00 +0000

Woke up this morning thinking another surf before work would be in store with a light morning wind and a dying swell, but, it was not to be. Swell has dropped enough overnight that the half tide this morning was just not working. Possibly at the late afternoon low tide if the onshore wind isn't on it. At any rate it's been a welcome three days of good surf.

In lieu of ocean communion I headed to the office early and began sifting and number crunching through the MLS trying to sniff out the ever harder to find gems hidden in the active listings. I focused my search on the type of unit I am most often asked about, direct ocean with a good view. To set a base line, I began by searching for all direct ocean units above the ground floor with at least 1200 sq. ft. that have sold in Cocoa Beach and Cape Canaveral since April 1 this year. [sales before April 1 are ancient history in this dynamic market] Discarding all sales of brand new units and those that didn't have a direct, east facing view the list contained 15 closed sales through yesterday. Lowest price was $207,000 for a 2/2 Driftwood in original but decent condition. Highest price paid was $675,000 for the northeast corner Xanadu penthouse, attractively remodeled. Sorting for price per square foot, the lowest price paid was $155 per square foot for a partially remodeled 2nd floor Constellation and the highest was $259 for a gorgeous 2nd floor, 5 year old Ocean Oasis. The average was $211 per square foot. I got the same number even when throwing out the high and the low. Only three of the sales were for less than $196 per square foot.

Now I have a number that the current market is paying for this type of unit. I also know from my research that these sales closed at an average of 90% of the last asking price. Searching using the same criteria for active listings and capping the price at $675,000, the highest paid price in my sold search, I have a list of 57 units actively for sale above the ground floor, east facing with at least 1200 square feet. Not surprisingly, the range of asking prices is out of touch with the reality of the sold range. Sorting on dollars per square foot, the lowest price is $184 per square foot (suggested short sale price) for a mostly-original Waters Edge 6th floor and the highest is, hold your breath, $353 per square foot for a Canaveral Sands 3rd floor corner with some updates but far from plush, offered furnished.

Of the 57 units on our list, 47 are asking more than 10% above the average on the sold list and fifteen dreamers are asking more than 10% above the highest. The average asking price of all 57 units is $260 per square foot or 23% more than the average sold price in the most recent four month period.

Our takeaway: The "for sale" market, for the most part, is out of touch with the recently sold market. There are anomalies and exceptions, of course, and these are the ones that buyers should be looking for in addition to the ones that are obviously priced right. I will consider paying above the average closed $/sq.ft. if the unit is exceptional in some way. If I can get someone's expensive remodel for a fraction of what it would cost me, it's worth consideration. I'm also willing to pay more for a corner or a second garage. On the other hand, I'm going to need to purchase below the average if a unit needs work. Buyers need to be thinking like appraisers. Establish a base price based on square footage and then adjust up or down for pluses or minuses. Also, as I mentioned in a recent post, it's vital to justify your offer with hard numbers like the ones here. Your offer may be far below asking but real world examples may be enough to snap an optimistic seller out of Lala Land. If you're offering and your agent is too lazy to do this research for you feel free to use my numbers here, or, probably smarter, find an agent who will.

By the way, in my search of active listings, there were six units asking less than the average sold $/sq.ft., two of them nice units firmly in the "deal" category at full asking price. Now, no TV until you do your homework.

"Deep greens and blues are the colors I choose."
__________James Taylor

Slice and dice

noreply@blogger.com (Larry Walker) — Thu, 23 Jul 2009 12:40:00 +0000

While the developer of Ocean Paradise in south Cocoa Beach was slicing asking prices of all remaining units by up to $125,000, Chesnee Cogswell from Oceansports World was reeling in a fine cobia from a standup paddleboard out back.

Prices at Ocean Paradise are now as low as $575,000 for a brand new direct ocean, 2nd floor, 2444 sq. ft. unit. The same developer cut prices on four remaining units at Garden Bay on the river the same day to as low as $299,900 for a 2nd floor, 2210 sq. ft. unit. The developer of Magnolia Bay on the river in south Cocoa Beach has reduced prices for a brand new 3/3, 2183 sq. ft. unit to as low as $349,000. That's $200,000 off the 2007 asking price. They are offering in-house financing as well.

Up at the Meridian the developer has prices down to as low as $575,000 on the remaining five direct ocean units on the MLS. Back down in south Cocoa Beach, all units at the super-luxurious Villa Verde on the river are being offered as short sales directly from the developer. Prices as low as $599,900 for a 3/3.5 with 2875 sq. ft.

The eight new unsold single family homes at the Enclave between 3rd and 4th streets in Cocoa Beach have all been reduced to $845,000, some with 4 bedrooms and 4 baths and over 3500 sq. ft.

These are not all of the recent developer price cuts but represent the most significant. I suspect we'll see more.

"Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust."
_____________Zig Ziglar

Eat em up, Cocoa Beach

noreply@blogger.com (Larry Walker) — Tue, 21 Jul 2009 14:12:00 +0000

It's official. The Cafe Surfinista on N. 1st St. in Cocoa Beach lit up the open sign just a few minutes ago for the first time. It's in the old Da Kine Diego's building. I've been lucky enough to have a few sample meals this past week as the crew warmed up the kitchen in advance of opening. The menu is all healthy fare, heavy on sandwiches, wraps and salads. So far, I've had The Baja, which is a grilled sandwich with smoky grilled tofu, provolone, red onion, tomato, chipotle mayo, lettuce and carrots served with salsa and blue corn chips. Two big thumbs up. I've also had The Byron Bay which is a grilled wrap filled with hummus, avocado and assorted shredded veggies. It's another winner and big enough to feed two normal humans. I think today I'll go for one of the five salads offered, maybe the Hanelei which has baby greens, celery, mandarin orange, walnuts and goat cheese topped with slices of faux chicken. Weekends only they'll be offering ceviche, pico de gallo, shrimp and homemade guacamole. The menu is rounded off with locally roasted coffee, fresh squeezed juice, wheat grass shots, Sambazon drinks, tea, beer and sangria. I predict that this place will be a huge hit.

Disclaimer: I have no interest in this place other than excitement in having a good new place to eat.

"If we're not willing to settle for junk living, we certainly shouldn't settle for junk food."
________________Sally Edwards

Is that short sale real?

noreply@blogger.com (Larry Walker) — Sun, 19 Jul 2009 13:26:00 +0000

I rarely link to other real estate blogs as I consider most of them embarrassing self-serving attempts to snare clients. One shining exception is the shortsaleblogger.com who had a brilliant post last week, Top 3 tips to buying a short sale I recommend it for anyone contemplating buying a short sale or selling a property as a short sale. I read it just after hearing another horror story about a buyer finding out several months into a short sale that the listing agent never presented her offer to the lender or the seller. I've encountered a similar situation in the past. In my case, the listing agent was accepting but not submitting other broker's offers because he was hoping find a buyer in time to score both sides of the commission representing the buyer and the seller. He would just lie and tell the other agents that their offers were in the works. I think in this most recent example that the listing agent is just a slacker or, as Dave put it so succinctly in the blog post I linked to above, an idiot. Read his post.

Be careful out there, folks. Question everything and have a contingency plan.

"Lies run sprints, but the truth runs marathons."
___________Michael Jackson

If it's not working, just bang on it harder

noreply@blogger.com (Larry Walker) — Fri, 17 Jul 2009 13:22:00 +0000

This week's launch of space shuttle Endeavor as seen from the backyard.

Those of you who get my direct updates will be interested to know that both the Coral Sands and Constellation oceanfront listings that I mentioned recently as attractively priced have accepted contracts after 11 and 4 days on the market respectively. Price it right and they will come, even in a crappy market. Apparently the concept of pricing to sell escapes the seller of the oldest listing in our MLS. The unit is a 2/2 riverfront condo in Cape Canaveral that has been listed for a remarkable 1512 days since May 2005. The listing is now at 57% of the original asking price and the commentary actually describes the seller as "motivated". Not surprisingly there is not a single photo of the unit on the MLS, just three exterior photos of the complex and no showing instructions. Even after four plus years chasing the market down and reaching the "motivated" state, this unit is still priced $25,000 higher than the lowest priced identical unit currently offered in the complex. Between slack listing agent and overpricing, this unit is at the center of a perfect storm of bad decisions that look to extend it's time on the market indefinitely.

With a similar time line, a Shorewood unit in Cape Canaveral finally closed this week after 1158 days on the market. It sold for 51% of it's original asking price in April 2006. An early price cut might have saved this seller six figures. Two other "priced-right" listings have closed this month after less than two weeks on the market. Both closed for 90% of asking price. Yin meet yang. A total of 16 properties have closed so far in the month of July in Cocoa Beach and Cape Canaveral, only one for more than $310,000. Our inventory of condos stands this morning at exactly 666?! It is a devil of a market after all.

Bonne chance to all sellers out there as we ease into slow season. Be aware that the competition for buyers will be intense from this point until New Years. Conduct your negotiations and decisions pertaining to pricing accordingly. Buyers, read the previous post, Self-defeating games.

Depend on the rabbit's foot if you will, but remember it didn't work for the rabbit._________________R. Shay

Self-defeating games

noreply@blogger.com (Larry Walker) — Sun, 12 Jul 2009 12:11:00 +0000

Early morning on the Banana River in south Cocoa Beach, July 12, 2009.

I had an interesting email exchange this week with a frustrated buyer who was peeved at a seller's response to his lowball offer. People, if you're out there making low offers in hopes of stealing something, you had better be prepared for rejection, sometimes angry rejection. It doesn't matter whether you think a property is over-priced or not, an offer 30% or more below asking price is not likely to elicit a warm note from the seller thanking you for being so kind as to offer cash. Speaking of over-priced, it will increase your chances of success if you actually have a grasp of what price would be a good deal on a particular property and start your offers within the bottom of the range of what you know to be a "deal". Seeking advice from friends and neighbors who may know nothing about the market in which you're offering is not market research. You should be aware of recent comparable sales, pending contracts, competition and condo association issues so that you can make an informed decision about your offer price. Additionally, a cover letter with justifications for your offer will sometimes make the difference between angry rejection and consideration. If you can't find comps to support your offer, some commentary on likely market direction, seasonality of sales, unclosed short sales, assumption of the seller's risk and so on will increase your offer's chances of actually being considered. Having said that, even well-researched offers may sometimes be perceived as insulting by an emotional or unrealistic seller. When that happens, don't take it personally. Deal with it and move on.

The buyer I mentioned above began his process with a verbal offer slightly above half the asking price. When rejected he made a higher offer in writing. No wonder that the seller had a burr under his saddle by the time he actually received a real written offer. Even with a justifying cover letter, which was not included, the 2nd offer faced a steep mountain of resistance. Not a well thought out strategy. If you're hoping to buy, resist the urge to float a trial verbal offer before actually offering in writing. If you're selling, I would advise never to respond to a verbal offer with anything other than "put it in writing".

My advice about knowing the market stands for sellers as much as for buyers. Knowing what your neighbor got for their home next door last year is not market knowledge. It's history. If you don't know the market right now, you may be insulted by an offer that is realistic and lose a sale while you cling to yesterday's reality. Knowledge, people. It's not just for kids anymore.

"No matter how low I set the bar for common sense, you manage to slither under it."
__________Richard to Ali

Fireworks and chiweenies

noreply@blogger.com (Larry Walker) — Sun, 05 Jul 2009 13:22:00 +0000

Tobias, Drew Bryant's chihuahua/dachshund mix.

In case you missed the fireworks last night in our area, the dozens of scattered displays (mostly illegal) added up to possibly the most impressive ever, at least from my end of the beach. For sleepy south Cocoa Beach, there were quite a few people going the duration on the beach celebrating Independence Day with dogs (at least one chiweenie) and kids enjoying a beautiful day at the beach. Oceansports Worl d provided a huge selection of standup paddleboards and kayaks on the beach for any interested beach goers to try. All in all, a great day in Cocoa Beach.

We are officially through the first half of 2009 and, even though the market has been in turmoil, the sales trend has held true to years past as you can see in the chart above. We had a total of 36 closed MLS-listed condos in Cocoa Beach and Cape Canaveral in the month (as reported by this morning). Only two sold for more than $340,000, both at the Meridian, and nine of the total were in oceanfront buildings. Over half of all condos sold closed at prices below $200,000 and one short sale at Solana on the River sold for less than $100 per square foot, a remarkable price for a 5 year old direct river condo. Of the direct ocean, east-facing units above the ground floor, the prices ranged from $196 to $273 per square foot.

There were only four single family home sales in the two cities and two of those were waterfront.

Inventory continues to shrink and we are at almost half the number of listed units from our peak supply three years ago. One effect of this, as I've mentioned previously, is that the super deals are becoming more difficult to find. If you're looking, be patient but ready to pounce when an attractive target presents itself. If your criteria are broad, you can still find a smoking deal. If your criteria are narrow, your chances of finding the perfect property at a crazy low price are lessened. You may have to choose between the perfect unit and the perfect price. Be careful of putting the "deal" ahead of what may matter more in the long run. There's a reason that units with side views or no views sell for less. Saving a few thousand dollars now may mean less as you sit on your balcony in years to come looking at the building next door rather than at the ocean or river, your intention when you began your search. Examine your desires and focus on what matters. Deals are still out there but the juicier fruit are higher in the tree now.

MLS inventory July 5, 2009 Cocoa Beach & Cape Canaveral

Condos, all prices_____671
over $500,000_________93 - 15 sold since New Year's Day
Single family homes____106
over $500,000_________43

"Eric shreds (and scrawled by a second hand) lettuce"
____14th St. seawall graffiti

Positive cash flow, does it exist?

noreply@blogger.com (Larry Walker) — Sat, 20 Jun 2009 13:23:00 +0000

I get tons of calls and emails from people looking for a "deal" on a beach property that will generate positive cash flow and offer a get-away spot for occasional trips to Cocoa Beach or Cape Canaveral. There is a pretty narrow set of requirements for realization of positive cash flow. Let's do some simplified math to help us narrow our search. Say we're looking for a condo in the $200,000 range. We'll assume a 30% down payment (Fannie Mae requirements for 2nd home condos) on a 30 year mortgage at 5.5%. Our fixed monthly costs will be (estimates but close to reality);

mortgage______$794
property taxes__ 250
condo fees_____ 350
utilities________ 130
insurance_______ 70
TOTAL________$1594

That means on this condo the buyers will need to net $1594 per month after management for all 12 months of the year. Subtract a couple of months for personal use and the net bumps to $1913 a month neccesary to break even. Without even looking for examples I can tell you that there is not a single $200,000 condo anywhere on the beach that will bring $1913 per month rent year round even if it were possible to carve out 2 months for personal use and rent the other 10 months. Does this mean there are no cash-flow possibilities? No. If there were no mortgage in our example the numbers would slide into the relm of possibilty but we're still faced with the impossible task of renting 10 months while carving out two months for our own use. In this case, with no mortgage, the only realistic possibilty is to not use the unit ourselves and have a long-term renter paying at least $800 per month, a very feasible scenario.

The biggest (but often invisible if you don't ask) fly in the ointment for investors exploring condo investment is rental restrictions. I have written about this before. In a nutshell, Cocoa Beach and Cape Canaveral, unlike most Florida coastal communities, have very few condos that allow weekly rentals. Most here restrict rentals to at least one month and some have as much as a one year minimum rental. Even with a one month minimum, an owner is faced with the daunting task outside of the main snowbird season of January through April of finding tenants who want to rent for at least one month. Our summer and fall guests are primarily vacationers who are here for one or two weeks. That reduces the options to finding a long-term renter which kills the idea of occasional personal use of the unit. The obvious best solution to this dilema is a weekly rental unit.

Let's explore the same scenario as above but with a weekly rental unit in the $200,000 range like Chateau, Ola Grande or Cape Winds. The units that are selling in this price range in these complexes are renting in the $600 to $900 per week range. It quickly becomes obvious that the no-mortgage scenario is only going to require about 50% occupancy to net enough after-management cash to break even. With no mortgage, positive cash flow is a very real possibility with halfway decent occupancy. Expect to pay more (20 to 40%) for good short-term rental management. Good long-term management can be had in the 10 to 12% range. If an owner is able to and does their own management the possible returns for weekly rentals become quite attractive. The other obvious plus of the weekly rental units is that owners can chop out a few weeks here and there for themselves without destroying the income stream.

For buyers who don't want or need personal use of the unit, one other way to tilt the odds in their favor is to find a unit at a price far below the assumed $200,000 purchase price. In our first scenario, dropping the purchase price significantly assuming the same desirability of the unit, the numbers begin to shine a little brighter even with a mortgage and a long-term renter. There are some other tweaks that will change the numbers like condo fees and utilities but those differences aren't big enough to change the tone of our hypothetical purchase.

As a potential condo buyer, your takeaways here are;

All other things being close to equal, a well-managed weekly rental unit will always generate more income and offer greater flexibility for personal use.
If you do stick with longer minimum rental buildings, don't think that because January through April rents and demand are high that you'll be able to find monthly renters the rest of the year. If you do, consider yourself lucky.
Be realistic with your expectation. Only considering positive cash flow scenarios might mean never using your unit yourself or could have you looking at units you don't like. The benefits of owning a condo that you use occasionally that is slightly negative on cash flow might make sense.
Ask your buyer's agent about rental restrictions. Not all of them will go out of their way to tell you why your dream of income/personal use won't work in many of our complexes. Many of them have never stopped to even think about the implications of restrictions.
And lastly, if you don't have to have the income, you'll probably enjoy your time here more in a longer-term building without all the transients. It's all about what you want and need.

I merely took the energy it takes to pout and wrote some blues.
________Duke Ellington

Putting right along

noreply@blogger.com (Larry Walker) — Thu, 18 Jun 2009 13:07:00 +0000

Photo above was taken from the top floor of Xanadu looking south towards downtown Cocoa Beach. The Pig and Whistle Pub is the brown roof building in the dead center of the shot. The white buildings on the river in the top left are Harbor Isles with Merritt Island off in the distance.

Sorry for the lag between posts as I've been traveling. We are back on the regular schedule now.

Action in the Cocoa Beach and Cape Canaveral condo market has been strong so far this month with 46 accepted contracts since June 1. Fourteen of those were short sales and a few others were foreclosures. Only 2 of the units were asking above $500,000. With sales at Meridian winding down to the last few developer units I expect the over-$500,000 sales to drop off the cliff. Of the fourteen condo sales over $500,000 so far in 2009, eight were Meridian units. That leaves us with a rest-of-the-market sales rate of one half-million-dollar-plus condo per month. That's with an inventory this morning of 97 units, eight years worth not even factoring in the shadow developer inventory which will easily swell that number by 50% or more. Not good news for the luxury condo market.

We have had an impressive 25 closed condo sales so far in June, two over $500,000, both at Meridian. Twenty of the thirty sold for less than $230,000. That paints a pretty clear picture of our market. If I gave any credence to median price numbers that metric would look horrific year over year. The bright spot in all this is the fact that so many units are selling despite significant hurdles with financing and the difficulty of bringing a short sale to the closing table.

Only one single family home has closed this month in our market, a direct Banana River home on Jack Drive that closed for $450,000. Another three went under contract since the 1st.

Of the sales of note so far this month, my favorite has to be the Fountain Cove 3rd floor unit that closed Monday for $185,000. I presented an offer exactly one year ago today on this unit for $190,000 when it was listed for $243,500. Not only did the listing agent rudely dismiss the substantiating comps we included with our offer, she actually called back after the seller refused to counter to deliver a second message from the sellers, "Tell them to go buy another condo." We did. You can read the entire sadly funny exchange here. Others of note included;

A five year old top floor, 1918 sq.ft. Solana on the River closed for $215,000 as a short sale.
A 2 year old 3/2 Puerto del Rio in Cape Canaveral with 1862 sq.ft. sold for $205,000 as a short sale.
A direct river River Bend 3/2 with 2050 sq.ft. and a boat slip in south Cocoa Beach was stolen for $260,000.

MLS inventory June 18, 2009 Cocoa Beach & Cape Canaveral

Condos, all prices_____681
over $500,000_________97 - 14 sold since New Year's Day
Single family homes____102
over $500,000_________39

“If you can't make it good, at least make it look good.”
_________________Bill Gates

Semi-charmed life

noreply@blogger.com (Larry Walker) — Tue, 02 Jun 2009 15:42:00 +0000

Big fish in the surf at sunrise in south Cocoa Beach. The office can wait.

We are seeing more and more condo sales fail because of financing-related issues. With Fannie Mae's new rules related to association health, many condo complexes are missing the cut for Fannie Mae loans. As these loans represent a sizable chunk of the available condo financing, the impact is significant. The new scrutiny includes review of reserves, number of owners past due on condo fees and percentage of units owned by a single entity. I am aware of buildings that are immediately disqualified because of the latter. Another fly in the ointment is the new appraisal rule mandating no direct contact between the lender and the appraiser. Good intentions but the result has been less than impressive. Instead of experienced local appraisers who understand our market and who receive the entire appraisal fee enabling them to spend the time necessary to do an accurate appraisal, the man or woman doing the appraisal now is often the low bidder who is receiving at times 1/3 of the fee,(2/3 going to the appraisal management company) and may be driving across the state to do the job. For the fee being collected, there is not a lot of incentive to research the difference between a weekly rental building and a one-year-minimum rental building or the significance of the higher value of a building with a recent major concrete reno project and one staring at a major project in the near future. Think the low bidder will consider other good comps when it's pointed out that the ones he used aren't really comparable. Not happening.

There are a few takeaways here;

Buyers, your financing may not happen no matter how shiny your credit report is.
The appraisal will likely not represent a true picture of the condo's worth (could be high or low), although a buyer may use a low appraisal to his benefit in renegotiating a lower price post-contract.
Cash is no longer king. It is ruler of the universe. Sellers, you must treat cash offers as golden because they may be the only way you will sell your unit in this environment.

Time for predictions. The biggest question on everyone's mind is, when will the market bottom? I can't say but we have already seen sizable upticks in selling prices in a few complexes. That doesn't mean another distressed seller or bank-owned unit won't surface in these complexes. It does indicate that we are sniffing around the bottom when there are buyers willing to pay more than the previous low price. With prices now at pre-runup levels, the amount of downside is reduced enough that, barring total economic collapse, the "bottom" is close enough that risk levels are tolerable in some buildings and complexes. I am talking about existing buildings with no developer-owned units. This does not apply to any of the new luxury units. I expect more price erosion, possibly significant, in the over $500,000 condo market with the most pain in the brand new buildings. I would not pay today's asking price in any new building in Cocoa Beach or Cape Canaveral.

If you are looking for a very specific type of unit or in a specific building or area, waiting for the bottom could turn into an exercise in frustration. You need to to recognize when you've found the perfect unit and do your best to negotiate the best price possible rather than hoping to find the perfect unit at the exact market bottom. Example: if you wanted to buy a unit in Mar Bleu in south Cocoa Beach, you have had 2 chances since 2003. No units have been offered since the last sale last summer.

One thing that is easy to predict is the rate of sales for the rest of the year. We are right at the peak time of year for condo sales and we can expect sales to decline from this point through the end of the year if recent years are an indication. Graph of sales so far this year over the last two years below.

Sellers; take note. If you don't have a contract yet and you'd like to sell this year, get aggressive and do your best to reach acceptance on any offer you receive. Recognize that it's very likely that your expectations are not realistic and that you may have to accept less than you thought. When I bring you an offer please consider it carefully. There are 671 condos currently offered on the Cocoa Beach and Cape Canaveral MLS and, if you are unwilling to accept the June 2009 reality, we'll move on to the next one.

No fashion error was ever made in black.
_______________Calvin Klein

So long Spring, hello Summer

noreply@blogger.com (Larry Walker) — Sun, 31 May 2009 11:47:00 +0000

A quiet morning this week in south Cocoa Beach.

It's the last day of May and the month has been another busy one in the Cocoa Beach and Cape Canaveral real estate market. We're still lagging last year's numbers but the pace is steady. May was the peak month for condo sales last year and there is no reason to think 2009 will be different. There were 36 closed condo sales in the two cities during May as indicated today in the Cocoa Beach MLS. Only 2 of those sales were for more than $385,000, one, as always, a brand new Meridian penthouse for $630,000 and the other, a huge Ocean Pines penthouse with 65' of ocean balcony that sold for $575,000.

There were nine single family home sales in the month with eight of those in Cocoa Beach. Six were waterfront with the highest price paid for a massive, 2 year old, 6354 sq.ft., 7 bedrooms and 4.5 bath canal home that closed for $690,000.

Other notable deals of the month included;

A Brisa del Mar condo conversion 2/1 that sold new in 2006 for $200,000 sold as a short sale for $76,400.

A very nicely remodeled, non-waterfront Oaks 2/2 in Cape Canaveral sold for $85,000

Direct Banana River ground floor, River Lakes 2/2 in south Cocoa Beach was stolen for $130,000

Four year old Shores of Artesia townhome, 1 block from ocean, sold new in 2005 for $307,000. The new buyer got it for half off in a short sale for $150,000. On the market just 17 days.

A huge (2424 sq.ft.) Perlas del Mar w/2 car garage didn't last long on the clearance table. This 2 year old unit sold new in 2007 for $453,000. The brain trust at JP Morgan Chase agreed to dump it for $162,000. Also on the market for just 17 days.

A 2-year old, 3/3.5 townhome in a small building (Sea Shell Cay) close to Villages of Seaport that sold new in 2007 for $437,000. It was also a foreclosure and closed for $166,250, full asking price. Sold in 6 days.

A direct Banana River Rock Pointe, oversized 2nd floor 2/2, went for $180,000.

A 3-year old Cape Canaveral Bayport villa w/2 car garage that sold new in 2006 for $350,000 sold for $190,000 as a short sale.

There were 3 excellent deals in weekly rental ocean condos this month. One was a ground floor Ola Grande 2/2 next door to the Cocoa Beach Pier that sold for $200,000. This unit rents for $800 to $1100 per week. Do the math. A 4th floor southern view, 2/2 next door at Chateau by the Sea closed for $202,000 and a 3rd floor north facing Sandcastles 2/2 was stolen for $210,000. Similar rents for all and all three sold fully furnished.

A ground floor direct ocean 2/2 at Beachwinds in Cocoa Beach closed for $280,000.

A very nice, partially furnished Harbor Isles 3/2 corner, direct river sold for $285,000.

A nicely remodeled, 3rd floor, southern view Windward East also sold for $285,000.

A rarely available, east end unit, 3rd floor, 3/2 at Cocoa Beach Towers closed for $340,000.

And rounding out the most interesting deals of the month, a partially remodeled, huge (2484 sq.ft.) 3/2, 2nd floor direct ocean with balconies on both the east and west sides at Constellation way down in south Cocoa Beach (Little Malibu) sold for a remarkable $385,000 or $155 per square foot.

In the sky, there is no distinction of east and west; people create distinctions out of their own minds and then beleive them to be true.
____________Buddha