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