Housing Market The Impact of Rising Inventory and Sales Slowing January 2023

YouTube video on the market update

How’s the market?

Active inventory is up 292%

Sales are down 25%

Just looking at these two stats…the housing market is done…the crash is here…prices should be plummeting…Let’s dive into the numbers

Brevard County

Active inventory 2673

Sold property 801

Months Supply 3.34 months

Average Price $ 401,116 2022 $360,179 11.4% increase

Median Price $ 345000 2022 $308,430 11.8% increase

Sunrise photo from Cocoa Beach with text overlay showing the average sales price in Brevard County January 2023

Sunrise photo from Cocoa Beach with text overlay showing the median sales price in Brevard County January 2023

Average price per SqFt $226.02 SqFt

Days On Market 42.89 DOM

Property selling in less than 7 days 240 (30 % of the sales)

Property selling over $1M 25 properties

Highest price sale $5.5M South Merritt Island

Home sales under $200K 26

Cocoa Beach & Cape Canaveral

Condos

A: Price range $129,900 to $1.660M

S: Price Range $120K to $760K

Map view of the active condos in Cocoa Beach Florida

Map view shoing the sold condos in Cocoa Beach Florida

Active inventory 132

Sold condos 29

Months supply Months 4.55 months

Average Price $328,444 2022 $345,845 5% decrease

Median Price $321,000 2022 $305,000 5.2% increase

Average price per square foot $291.87 SqFt

Days On Market 29.69 DOM

Condos selling under $200K 8 ($120K to $167K)

Best selling complex Puerto Del Rio ($510K, $540K, $585K) and Costa Del Sol ($350K, $394K, $420K)

Map view showing the best selling condo complex January 2023 in Cocoa Beach & Cape Canaveral. Puerto Del Rio and Costa Del Sol

Single Family Homes

A: Price range $ 625K to $3.6M

S: Price Range $512,500 to $800K

Active inventory 30

Sold homes 5

Months supply 6 months

Average Price $629,000 2022 $699,690 10% decrease

Median Price $600,000 2022 $525,000 14.3% increase

Average price per square foot $378.97 SqFt

Days On Market 42.8

Homes selling under $500K 0

Homes selling over $1M 0

Now that you have had a chance to look at the stat’s from January 2023…what do you think?

I think comparing our current housing market to 2022 & 2021 then we are doomed. The crash is certainly coming. Let’s look at January & February sales from 2016 to 2020. These are traditionally the slowest months of the year. Our 2023 sales are in line with these 5 years.

Let’s look at the active inventory…We are below where we have been in the past…

The changes that we are seeing in the housing market are a very healthy correction and I am happy to see this. I am anticipating “normal” sales in 2023. March will be 1200+ properties closing. April through August we will have 1300+ properties closing.

If you are selling a property in 2023, price your home accordingly. If homes in your area sold for $450,000 in the last 6 months…You should list your home below that and anticipate a $435K sales price. I would definitely recommend pricing it below any active listing in your area to entice the buyers to submit an offer on your property versus the others. You also need to realize that a buyer will be paying significantly more for their homeowners insurance in 2023. If your roof is 15 years old (+/-) I recommend getting bids on replacement OR just getting it replaced to make the sale that much easier. Insurance companies are really getting tough on roof age.

If you are buying a property in 2023, you will have a better selection than in the last 2 years. You will have some negotiating power for the price, closing costs, and/or repairs. You will not get that $450K house for $375K. Be prepared to compete on multiple offers, because they are still happening. Homes are also selling for the first couple of days on the market. Remember, as long as our active inventory is under a 4 month’s supply, we are still in a seller’s market. We need to have over a 6 month supply to be in a buyer’s market and I do not anticipate the housing market in Brevard County shifting that far. We might see a balanced market in the fall of 2023…but I really see us returning to the market we had from 2016 to 2019.
If you have any questions about this information or making a move? Eric Larkin with Real Broker, LLC can help! Schedule a call or leave a comment here

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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