Housing Market Update 2022 predictions and 2021 review

Housing Market Update 2022 predictions and 2021 review

Housing Market Update Video

How’s the market???

We ended 2021 being the best year for real estate sales in Brevard County. Beating the previous year and record holder by 11%. We had 17,202 closings in our MLS compared to 15,437 in 2020.

The Median sales price for 2021 was $288,500 which is a 15% increase over 2020’s $250,000 median price.

The Average sales price for 2021 was $347,577 which is a 16.7% increase over 2020’s $247,777 average sales price.

The Average Sales per Square Foot was $217.40 which is a 16% increase over 2020’s $187.31 price per SqFt.

The Average Days on Market was 23.57 days in 2021 versus the 47.31 days in 2020.

Over 9200 properties sold in 7 days or less in 2021 or 53%…vs 5185 in 2020 or 33%

There were 361 properties to sell over $1M versus the 202 that sold for over $1M in 2020.

Average months supply of property available in 2021 0.9 months vs 2.19 months in 2020

Map view of the $1M+ sales in Brevard county for 2021.
Map of the $1M+ sales in Brevard County for 2021

Active inventory is trending lower to end the year versus trending up. This is along with sales trending up versus pulling back are strong indicators our extreme seller’s market will continue into and throughout 2022. I see no signs of a market crash or big adjustment in our market

I would be happy to get back to 2018 and 2019 sales (which is still a seller’s market). 

We need inventory to increase while sales decrease. New listings were up in 2021 vs 2020 but they were below our new listings in 2019 and 2018.

Graph of the last 3 years showing the trend for active listings, new listings, and listings sold in Brevard County.
Trends from the last 3 years of Active listings, sold listings, and new listings coming on the market

There will not be a huge wave of foreclosures or short sales in 2022. They have been declining the last 4 years. Most homeowners have some type of equity in their home. 31% of all homes have 50% equity or more. 37% own their house free and clear. 4% are significantly underwater. More than likely if you had gotten behind on your mortgage in 2020 or 2021, you have some equity in your home. If your lender/bank has started the foreclosure process, you research to see what kind of equity you have and if it makes sense to sell prior to the bank foreclosing on your home.

https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2021-u-s-home-equity-and-underwater-report/

Ideally, if you have a second home you haven’t used that much or would like to have a second home in a new location…this is an excellent time to consider selling. This is also a good time to consider selling if you have a rental property that the tenant is moving out soon. Maybe this is the year you cash out or update your rental portfolio.

That is what happened in 2021 in Brevard County, here is what is happening in the Cocoa Beach area.

Single Family home sales in Cocoa Beach and Cape Canaveral

Even though 2021 was an amazing year for sales throughout Brevard County, single family homes in Cocoa Beach and Cape Canaveral were actually down from 2020. We had 176 homes that sold in 2021 versus 203 in 2020.

The reason for the slight drop in sales for homes in Cocoa Beach & Cape Canaveral is due to the big drop in active homes for sale. We averaged 27 homes available for sale in 2021 versus 42 in 2020. As of today (January 8th 2022) we have 20 active listings. 7 of those homes are new construction in the Laurham Village community that is just breaking ground…

South Cocoa Beach site for the Laurham Village community has broken ground. 3 of the riverfront homes are starting to go up. The Banana River is in the background.
Laurham Village construction has begun

Another reason for the drop in sales is the increase in the price of a home in Cocoa Beach and Cape Canaveral.

Median sales price in 2021 was $635,000 versus $480,000 in 2020

Average sales price in 2021 was $771,533 versus $562,003 in 2020

Average price per SqFt was $344 in 2021 versus $266 in 2020

I am pretty sure the 32% increase in the median price & the 37% increase in average price also had an impact on the number of sales happening in Cocoa Beach and Cape Canaveral.

Condo sales in Cocoa Beach and Cape Canaveral

Condo sales in Cocoa Beach and Cape Canaveral seem unstoppable in 2021. There were 767 condo sales in 2021 versus 656 in 2020.

We had a HUGE jump in sales in spite of a huge drop in condos available for sale. In 2020 we averaged 164 active condos for sale and in 2021 this number dropped to 62. 

Graph showing the trends of active condo lisitngs in Cocoa Beach and Cape Canaveral for 2020 and 2021
Active Condo Inventory trends in 2020 vs 2021

Median sales price in 2021 $309,000 versus $278,000 in 2020.

Average sales price in 2021 $345,003 versus $302,527 in 2020.

Average price per SqFt in 2021 $264 versus $220 in 2020.

Days on Market 31 days in 2021 versus 64 in 2020.

2022 will continue to be the hyper-active sellers market that we have been seeing the last 2 years. We will need to have a good increase in our inventory for sale with a slight pull back on the number of properties for sale in order to change things back to the market we had in 2018 or 2019; which was still a sellers market. 

Graph showing the inventory trends for Brevard County.
Until this starts trending up, we will stay in a sellers market

How will this happen?

Interest rates rising will always have an effect on buyers. Homeowners insurance rates are rising and could make it difficult for someone qualifying for a mortgage or could force some homeowners to sell because of a 40% or more increase in coverage (this increase is happening right now) New construction gets their supply chain caught up and has the labor force to do the work. Right now, it is taking 8-12 months or longer to have a home built. 

If you have any questions about our current housing market or making a move to our area, I am happy to help. You can call/text Eric Larkin with Real Brokers at 321.795.1854 or leave a comment below. 


About the author:

Eric Larkin is a Broker Associate with Real Broker, LLC. 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.

What questions do you have about buying or selling a home? Contact Me

Call/Text 321-795-1854

Email Eric@EricLarkin.com

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