Covid Real Estate Market Update 2nd quarter 2020
No matter what is going on in the world, people are always asking “How’s the market?” Now that we are through the 2nd quarter for 2020, which is also the 1st COVID19 quarter; here is what is going on with the real estate market in Brevard County and in the Cocoa Beach area.
Our active inventory is low and it keeps dropping. We ended the second quarter at 2561 property for sale versus 3538 properties for sale at the end of the second quarter in 2019, over a 25% drop in properties for buyers to choose from.
We do not have as many homes coming on the market for sale since COVID19 hit us. We only had 4250 properties come on the market during the second quarter of 2020 compared to the 5199 new listings we had in the second quarter of 2019. This is 949 less properties on the market or an 18% drop of new properties being listed for sale in Brevard County.
We are currently under a 2 month supply of property for sale in Brevard County.
What this means for a seller
Less property for sale means your home/condo/townhouse can more than likely sell for a little more today than it could have sold for 2 months ago. You can expect to see a lot of showings the first few days your home comes on the market. You can also expect to see at least one offer that first week too. Does this mean your palace is suddenly worth 20%, 30% or more? Maybe, but probably not. Most of the properties being sold are still being financed. This means your home will need to appraise at or above contract price. If the appraisal does come in low, hope the buyer loves your home enough to put the difference down to still make the purchase. More than likely, the buyer will ask to match the appraisal price or you can come to terms somewhere in between the appraisal value and the contract price. If you have been thinking about selling your home (or tried in 2018/2019 and didn’t like the values), you should give me a call/text/email to see what your home could be worth in today’s market. Buyers are out there and there aren’t that many properties for them to choose from.
What this means for a Buyer
We have been in a Sellers market for some time here in Brevard County, so low inventory isn’t really a new topic. Our inventory has been around 3 months supply for the last 5 years and we just dropped below a 2 month supply. You need to have a good plan in order to compete in this kind of Sellers market. Here are 5 things you need to do to have better success buying.
Get pre-approved for your mortgage
Prepare to put a larger than normal escrow deposit
Shorten your inspection time (or remove it altogether)
Expect to be one of several offers on the home you like
Use an escalation clause with your offer
More stats for the 2nd quarter in Brevard County
28% of the property sold the first 7 days on the market
52% of the property sold the first 30 days on the market
33 properties sold for over $1M
Highest priced property was a south Merritt Island home for $3.3M
Average priced property $288896
Median priced property $244150
Average days on market 48
Cocoa Beach & Cape Canaveral market update Q2 2020
We are seeing some of the same trends locally that were seen in Brevard County. Active inventory for Cocoa Beach and Cape Canaveral continues to drop with not as many properties coming on the market as we have seen in the past.
Our condo market has been down compared to previous years/quarters/months for some time. Active inventory the end of Q2 2020 was at 163 condos for sale versus 218 at the end of Q2 2019. Total sales for Q2 2020 is 137 condos versus 173 condo sales Q2 2019, a drop of 20%. New listings coming to the market for Q2 2020 is 185 versus 237 in Q2 2019, a drop of 21%.
The highest priced condo sold for $1.6M in the Ocean Oasis. 5 bedrooms 5152SqFt penthouse
The lowest priced condo sold for $59K in the Plaza in Cape Canaveral. 399SqFt efficiency.
Averaged priced condo $277793
Median priced condo $245000
Sales per SqFt $204
Average days on market 58
Most of the condo sales were at the Villages of Seaport with 7 sales ranging in price from $150000-$242000. They were tied with the Plaza with 7 sales ranging in price from $59000 to $135500. Third in sales was Stonewood Towers with 6 sales ranging in price from $365000 to $840000.
Single family homes
Even though sales were down in the 2nd quarter for 2020 with home sales in Cocoa Beach and Cape Canaveral, we are actually up for the year by 2 (89 total for 2020 vs 87 in 2019) There were 39 homes to sell in Cocoa Beach & Cape Canaveral in Q2 2020 versus the 57 that sold in Q2 2019. The second quarter home sales for 2019 was an anomaly compared to any other quarter of sales in CB/CC, with the exception of Q1 2020. Really the home sales for our 2nd quarter 2020 were pretty solid. The active inventory of homes for Cocoa Beach & Cape Canaveral is at 37 homes at the end of Q2 2020 versus 55 at the end of Q2 2019, a drop of 32%. I mentioned earlier in this post that we need more property for sale in Brevard County, this is especially true for single family homes in Cocoa Beach and Cape Canaveral.
The highest priced home to sell was an ocean front home near downtown for $1.45M
The lowest priced home sold for $220K in Cape Canaveral. Yes, this home needed work!
There were 6 home sales under $300K, which is another anomaly with our beachside sales.
Average home sale price $545045
Median home price $450000
Sales per SqFt $246
Average days on market 66
Most of the home sales occurred in the Cocoa Isles ranging in price from $262500 for a 3 bedroom home that could use some updates to a canal front home that was built in 2011 for $885000.
Whether you are simply curious about our real estate market and have questions or you have been considering buying or selling here in Cocoa Beach or anywhere in Brevard County; I am here to help. I am a local real estate agent with RE/MAX Aerospace that lives in Cocoa Beach and works throughout the Space Coast. You can call me, text me, send an email or comment below.
About the author:
Eric Larkin is a Broker Associate with REMAX Aerospace. He lives, works, and plays in the Cocoa Beach area. If you have questions about moving or relocating to Cocoa Beach and the Space Coast, let me know! I get calls, texts, direct messages & comments on my posts every day about the real estate market and things that are happening in Cocoa Beach and the Space Coast that I love answering. Ask me your questions on moving, relocating here, or anything about the community. I am here to help. I have been helping buyers and sellers with their real estate needs since becoming a real estate agent in 2003. My focus is always on helping, answering your questions, and doing everything possible to make certain you have a smooth transaction from beginning to end.
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