As promised

As I mentioned in last post, following are the last sales figures for Merritt Island and Viera.

Jan 1, 2007 thru May 30th 2007 there were 184 properties sold in Merritt Island. The prices ranged from $65,000 to $2.275M. In our MLS system we didn’t include short sale stats in 2007.

Jan 1, 2008 thru May 30th 2008 there were 151 properties sold in Merritt Island. The prices ranged from $41,000 to $2.8M. Of these sales 8 were short sales or foreclosures.


Jan 1, 2007 thru May 30th 2007 there were 286 properties sold in Viera. Prices ranged from $112,000 to 1.075M this was the only home over 1M sold during this period.

Jan 1, 2008 thru May 30th 2008 there were 231 properties sold in Viera. Prices ranged form $80,000 to 1.4M, in this time period there were 4 properties sold over 1M. Of these sales there were 16 short sales or foreclosures.

A couple of my favorite picks in Merritt Island are as follows they are in the higher price range, the multitude of choice in the low and medium priced homes are endless.

#1 is a short sale located on the Banana River. This home has over 5000 sq ft, pool, and 3 car garage and built in 2006. This home is priced at $929,900. It is a short sale so you have to be patient if you are the buyer.

#2 is a home built in 2006. The home has over 3500 sq ft with pool, 3 car garage with RV or boat space. This home is priced at $995,000. This is not a short sale so conventional closing will occur.

#3 is a home also on the Banana River. Priced at $849,000, it contains over 2400 sq ft with pool, 2 car garage and the views are amazing.

Next time we will explore Viera. This is a new community with upscale shopping and dining. Most shops are new and most properties are newer. The community has many golf opportunities as well as being convenient to everything. Why they even have a super Wal-mart and a super Target.

Stay in the game.

Jim Bagwell

"Its the economy stupid"

I know new home sales went up for the 1st month in forever and that is good news. The rise was 3.3%. I also know that all pundits want you to feel we are at the bottom.

“It is all about the economy, stupid” Just a paraphrase not an insult. All agents in our community are busier now than in couple of years and I believe the reason is twofold. One is the prices of the properties we are selling and two is there are fewer agents working in Real Estate.

I have just completed a course to become a “Certified Short Sale Professional”. I did this because I believe that there are a lot of people out there who obtained a mortgage in 2003 or 2004 which was 100% financed and was an ARM. These loans are due to adjust this year or next. The value is no longer there in order to refinance. These home owners are going to need help in order to stay on track financially for their future. Since we all helped these people buy the properties then we should be willing to learn what we can in order to help the same people get out with their future. Yes there are good buys everywhere you look; all you have to do is find the good buy not the buys that are stuck in 2004. Foreclosure and short sale no longer have the stigma that it once did, since there are so many people that are facing the fact that the value in property is no longer what it once was back in the day. The difference in foreclosure and short sale is the hit you will take on your credit score; it is probably about 150 pt difference.

There are remedies to the tax consequences also but I will have to refer you to your CPA but I can point you I the right direction.

Merritt Island canal homes were once the hottest investor property out there; recently there was a 4 bedroom 2 bath canal home with pool and boat lift that closed at short sale for $242,000. 3 years ago this home would have closed in 30 days for $389,000.

So if you selling price it well and if you are buying, get the price you need to make it work.

I believe the correct thing to do is to work for the people both buyers and sellers.

Jim Bagwell

"Change will do you good" Cheryl Crow

Diversity

Although I live on Cocoa Beach, my wife and I have been doing a lot of business in Merritt Island and the Viera area.

There are several active blogs in the Cocoa Beach area, a couple are cheerleader type blogs that will tell you that it is the time to buy. There is another that is down to earth and is realistic to the market. It all boils down to the buyer’s motivation. In an effort to service all potential buyers, I am going to focus this blog on the Merritt Island and Viera area. Of course I live in Cocoa Beach so if I can answer questions or show you properties, please contact me at walkerbagwell@aol.com. Keep in mind that if a Real Estate professional ever says you can’t lose, then run don’t walk to the nearest exit.

I hope you continue reading and I will start sharing with you deals and not so good deals in the Merritt Island and Viera area. For people who are relocating to our area, the choices are great. For the young family transferring to start a life the price range on the mainland is much more varied.

Consider this:
The median priced canal home in Cocoa Beach is priced at $465,000, good condition with dock.

The median priced Merritt Island canal home is priced at $329,000, completely renovated, 100 sq ft larger than the Cocoa beach home.

A 4 bedroom home in Viera, median price of $459,900, 3 baths, 3 car garage, pool and built in 2003.

A 4 bedroom home in Cocoa Beach, median price of $459,000, 1 car garage, pool and built in 1958.

These areas are great if you are relocating to our area or if you are looking for a canal front home to get away to enjoy a weekend of fishing. The choices are almost unlimited in the number, prices and style of homes.

At the time of this post there were 631 single family homes active in Merritt Island priced from $74,900 to $4M, of these 61 are on the Banana River priced from $299,900 (a short sale) to $2.5M and also 98 on navigable canals priced from $199,900 (a short sale) to $1.1M. Now it seems that a canal front home is more affordable than they have been for years. More people than you realize keep a home on the canals with their boat on a lift and commute from Orlando for weekend fishing and other holiday events.

At the same time there were 598 homes in the Viera area priced from $72,000 (foreclosure) to $1.799M, there are 26 homes in this area over $1M and one of these is a short sale. There are some beautiful golf course homes that are becoming very affordable.

The next post will be on sales in these areas and any trends that I can decipher.

We also do a newsletter for our complex and 2 adjacent complexes. You can view this at www.cocoabeachwindward.com . Research shows that 1/1/05 thru 5/18/05 there were 7 units sold in these 3 complexes. In the same period of 2008 there were 12 units sold only the prices were changed to protect the buyers.

Your friend
Jim Bagwell

Real Estate Excitement ?

It doesn’t take a whole lot to make us Real Estate people excited these days. We had a very much improved 1st quarter compared to the last couple of 1st year quarters. That being said it is still very much a buyer’s market and the price reductions are showing it to be true.

I have been attempting to assist a reporter on some research on the condo market which has been much more distressed than the single family home market. The results are interesting if you are into that sort of thing. I have to try to keep my finger on the pulse of the market so I do this sort of thing continually.

Please keep in mind that averages are just that averages. All kind of things affect the averages. You aren’t buying the average property; you are buying the property you desire with the amenities you desire.

Details

During the 1st quarter of 2005 in the Cocoa Beach/Cape Canaveral area there were 58 condos sold in this area. The average sale price was $529,328. Of the sold units 16 were new units which drove the average upward. These units are all oceanfront.

During the 1st quarter of 2007 in the same area there were 30 units sold for an average price of $464,237. Of the sold units 3 were new units which didn’t have a lot of effect on the average. Again all oceanfront.

During the 1st quarter of 2008 in the same area there were 38 units sold for an average sold price of $396,448. Of the sold units there were 4 new units and 1 was a foreclosure which had little effect on the average. Again all oceanfront.

Pick

The condo I mentioned on a previous post is a 2nd floor condo with over 2400 sq ft, totally redecorated with great ocean and river views. It is listed at $489,000, in 2005 there were 3 sales in the complex with an average sale price of $680,667.

I hope I have helped you and not confused you but the point is the prices we are seeing now are a much more true feeling of the market. The most severe price reductions are in the low to medium range priced condos.

At the end of the 1st quarter there were 803 condo town homes active in our area of that number almost 20% were new construction condos with a lot more than that not on MLS.

May the force and a good agent be with you in finding your buy!!!!!!

Jim Bagwell

Busy April !

We have had a very active April which makes everyone in our business very happy. There were 49 properties closed in the Cocoa Beach, Cape Canaveral area and another 39 went under contract. Almost every full time agent is showing on a daily basis. There are a lot of experts saying we are at the bottom of the market and we could very well be however I can’t call the bottom. I do know the prices I expected are not materializing; there are good ocean front buys that are priced at 2003 and 2004 prices. When I look at it this is what we should have expected to occur. I charted 3 complexes and this is what I have found in my research. I tried to take a very low priced complex, medium priced complex and a top end complex.

Essex house condo (river front complex of efficiencies)
Aug 2005, a 512 sq ft unit listed at 154,900 sold for 150,000
Oct 2003, a 512 sq ft unit listed at 62,500 sold for 60,000
April 2008, a 512 sq ft unit listed at 75,500 sold for 60,000
2003 Prices

Crescent Beach Club (a medium ocean front complex with above average sq footage)
Nov 2003, 1804 sq ft unit on the 5th floor listed 398,000 sold 394,000
Jan 2008, 1804 sq ft unit on the 7th floor listed 409,000 sold 350,000.
Below 2003 prices

The Constellation (A top end complex with large sq footage and all amenities)
Oct 2005, over 2400 sq ft in this 7th floor unit listed 859,900 sold 825,000
Oct 2007, over 2400 sq ft in this 7th floor unit listed 430,000 sold 415,500
2003 prices

Now you wonder what the hell he is talking about, I am saying that I think some prices are right where they should be even if it took 2 years to get there. I am concerned about the bounce when a couple of properties sell at listed prices and then serious buyers will be disappointed on the price they will end up paying.

For those of you who have been in the military you will remember how it was in basic training when they got in your head and you were so gung ho, ready to kick ass. Then you were deployed, the crap hit the fan and you were wondering what the hell was I thinking, these people are crazy!

There are some Real Estate people who are in the same frame of mind; it is a matter of survival. No expert can call the bottom; all we can do is look at the evidence.

Excuse my rant

Jim Bagwell