How’s the market???
I have been saying for some time that higher insurance costs are going to have an effect on our real estate market. I have also said that when interest rates start to rise, it will have an effect on our real estate market. Now that we had a major hurricane hit the state of Florida, this will also have an effect on our real estate market. Before I go into the trends on how this trifecta is influencing our real estate market, here is a breakdown of stats for the month of September.
Active inventory 2375
Sold property 1127
Months Supply 2.1 months
Average Price $402,752 2021 $370,532
Median Price $350,000 2021 $300,000
List/Sale ratio 95%
Average price per SqFt $231.61 SqFt
Days On Market 17.44 Days
Property selling in less than 7 days 404 (36 % of the sales)
Property selling over $1M 30 properties
Highest price sale $3.2m
Home sales under $200K 35
Cocoa Beach & Cape Canaveral
|A: Price range $145K to $2.499M||S: Price Range $129K to $1.585M|
Active inventory 98
Sold condos 52
Months supply1.88 Months
Average Price $436,273 2021 $304,175
Median Price $385,000 2021 $235,000
Average price per square foot $344.68 SqFt
Days On Market 24.31 Days
Condos selling under $200K 5
Best selling complex Several with 2 sales: Canaveral Towers, Harbour Isles, La Riviera, Portside Villas.
Single Family Homes
|A: Price range $450K to $2.550M||S: Price Range $415K to $2M|
Active inventory 38
Sold homes 14
Months supply 2.71 Months
Average Price $940,464 2021 $950,750
Median Price $735,000 2021 $560,000
Average price per square foot $408.97SqFt
Days On Market 40.86
Homes selling under $500K 2
Homes selling over $1M 4
We are quickly seeing our real estate market trend back to where things were at in 2019 and earlier. The active inventory is up almost 300% since March 2022. Sales are trending down since March 2022 as well. Even with these changes, our active inventory is only at a 2-month supply. New property coming on the market has been trending up at record levels and this seems to stop in September. Same with the number of properties going under contract.
Sure, this time of year (October through December) things do start trending down with activity. Time will tell how much things will slow. We can easily be back to the inventory levels of a few years back, 3000-4000 properties available; with 1000-1200 closings per month. This will put things at a 3 to 4-month supply of property, which is still considered a seller’s market. We will just have to see how the higher interest rates and higher insurance costs will have an impact on our real estate market.
When rates went above 5% earlier in the year, the activity seemed to pull back for 4 to 6 weeks before picking back up. More than likely this will be the same with the more recent rise of interest rates in the high 6% to 7% range. If there is good news with this, it is the fact that buyers are less likely to be in a multiple offer situation, will be able to have a reasonable inspection period (back to 7-10 days), and not be paying $40K+ over the listing price.
Here in Brevard County, our real estate market should remain strong due to the jobs that are coming into the area to support the Space Center (SpaceX, Blue Origin, NASA, etc) and for the jobs that are coming in around the Melbourne airport for the aerospace/government contracting jobs (L3Harris, Northrop Grumman, Lockheed Martin, Raytheon, etc)
If you do have plans of making a move and have questions, I am here to help. Simply fill out the box below.
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.
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