Should you buy a condo in 2025? Headlines are pretty scary, but what’s really happening with our condo market? Let’s take a look at the Cocoa Beach & Cape Canaveral condo market.
Active inventory has been steadily rising over the last 2 years. In 2024, our inventory returned to a “normal” level, similar to what we were seeing pre-pandemic. In 2025, the inventory reached record highs, surpassing the 300 level. Yes, it peaked in April at 359 active condos available. The inventory has pulled back some, but we still have over 300 condos available for sale in Cocoa Beach and Cape Canaveral. As a Buyer, you have more choices today than there ever have been. If you are looking to sell a condo, the condition of your condo and the price you list it at have always been important; it’s even more important today.
Condo sales have been slowing down over the last couple of years. 2024 had some of the lowest sales numbers for individual months, with 25 or fewer sales happening in the last 3 months of 2024. Even though this bumped to over 30 in January 2025, our sales year to date are flat and could be the worst year of condo sales I have seen in Cocoa Beach and Cape Canaveral. There was even a brand new condo complex in Cocoa Beach, the Surf Condo, which closed out their sales in the first quarter and added 21 sales to our 2025 numbers, and we are still behind last year’s record low closings.
Our condo sales typically peak during the summer months. Depending on the year, June or July are usually the best selling months for sales, and the number of closings lower in the remaining months of the year.
It is no surprise that with higher inventory levels and lower sales, our months supply of condos available is up. We ended July with an 8.44 month supply of condos in Cocoa Beach and Cape Canaveral. Our average year to date is 9.20 months supply. We will probably break the 12 month supply towards the end of the year, like we did in November 2024.
Since we have an 8 to 9 month supply of condos on the market and we are only selling on average 36 condos per month, it only makes sense that prices have to come down. Not only are we seeing more condo sales under $200,000, but we have had some close under $100K. It isn’t just the low end properties that have lower prices…it’s in every category: River front, ocean front, & dry lots. Here are the average and median prices year to date compared to the past 4 years. This includes the 21 sales from the Surf condo that happened during the first 3 months of 2025.
Taking the 21 Surf condo sales out of the equation and you can see that the average and median prices are more in line with what we were seeing in 2021. As long as the inventory remains higher and sales average 36 closings per month, prices will more than likely continue to soften.
Interest rates always have an impact on what’s happening in the real estate market. You can see that over the last 2 years, rates have been in the high 6% range. Will the rates be coming down anytime soon? No one really knows. If it does, great, that will bring more people back to the market.
The interesting thing about all this is that most of the condo sales this year in Cocoa Beach & Cape Canaveral have been cash. There have been 255 condo sales from January 1 to July 31st. 159 were cash. 73 were conventional financing. 9 “other”. 8 seller finance. 6 VA loans. Interest rates haven’t really been a factor in most of the sales. Or, you can look at this and wonder if we would have more sales if rates pulled back some. I was happy to see there were a few condos purchased with a VA loan. There are only a handful of condos that are approved by the VA in the Cocoa Beach and Cape Canaveral area. Here are the 35 condos per the VA website.
Besides price, there are a couple of other factors that have had an impact on the condo market. The condo association fee is a big factor. The range of condo fees in 2020 was considerably lower than what condo owners are looking at today. Looking at the condo sales in 2020, the association fees ranged from $175 per month to $1175 per month. 8 of the 656 sales were over $900 per month. The average condo fee was $428 per month. Median association fee was $405 per month
Looking at the condo sales in 2025. The condo association fees ranged from $150 per month to $1,476 per month. 52 of the 256 sales were over $900 per month. The average association fee was $725 per month. Median association fee was $600 per month. It costs an extra $200 per month to live in a condo with just the association fee.
The biggest influence on the association fee is the insurance for the complex. There have been dozens of carriers pulling out of Florida over the last 5 years due to their losses from storm damage across the state. The smaller pool of carriers has pushed rates up across the state. Some associations were seeing a 40% increase in their annual insurance policies.
The other increase for condo associations is tied to new laws that went into effect after the Surfside condo collapse in South Florida. Condos need to have their reserves funded. This is being done by increasing the association fee, doing special assessments, or a combination of both. The good news is that this should be a temporary increase until the reserves are back to a particular threshold.
The other circumstance from the new laws was having milestone inspections done on the condos. This is for any property 3 stories or higher that is at least 25 years old (which are most of the condos in Cocoa Beach and Cape Canaveral). If these inspections show issues with the concrete and the structure, then there will be assessments to cure these issues. The “small” assessments are under $20,000. The larger ones are $50,000-$80,000. These are handled as either one time payments or a variety of smaller payments. Some associations have taken out loans that are then a second association fee for the owners for a time frame that has been anywhere from 1 year to 10 years. The milestone inspections are also required every 10 years once they hit the 25 year mark.
Buying a condo has always been a little more complex than buying a single family home. The current market and changes in the laws over the last few years haven’t made it any easier. Just know that as a Buyer, you have leverage and the ability to negotiate terms. You can work on price, you can ask the Seller for repairs, you can ask the Seller to prepay some of your monthly assessments, and if you are getting a loan, ask the seller to help with some of your closing costs. There are a lot of condos on the market, and 36 closings a month on average.
Do you have questions about a particular condo or curious about what’s on the market? I am here to help. Simply leave a comment below or give me a call. I am happy to help.
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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