Update

Can you believe we are half way through 2008? The older I get the faster this life goes by. I thought I would catch you up on the market trends for our 3 complexes. It doesn’t always have to be bad news.

So far in 2008 there have been 13 units sold in the 3 complexes. 5 in The Diplomat, 5 in Windrush and 3 in Windward East. In the same period of 2007 there were 4 sold in the 3 complexes. 3 in The Diplomat and 1 in Windrush.

Now the main difference is of course the price but any movement is good to bring prices back to stabilization. I believe we have a ways to go for stabilization because I feel the lenders are still hiding foreclosures by not foreclosing. I believe we will see the foreclosure rate increase for the rest of the year. Keep in mind that lenders try to hold their bad debts to around 3% in order to attract investment money.

The 3 front buildings sold in The Diplomat sold for an average price of $159,300. The Windrush with over 1800 sq ft sold for $475,000. This is what happened in 2007.

So far in 2008 there have been 4 units sold in the front of The Diplomat at an average sold price of $131,750. This would be a decrease of 17% of sold price. This figure is typical of the market. The 3 units in the Windrush tower sold at an average price of $312,500 this compares to the unit in 2007 sold for $475,000. This would be a decrease of 34% but the unit sold in 2007 had about 300 more sq ft which would equate to the difference in price.

Bottom line is you can’t take too much stock in the talking heads or the media in general. You have to get specific data when comparing markets.

Peace to all!

Jim

Summertime Blues!

There has not been a lot of activity this past week in our complexes.

I do believe in Windward East we have the hardest working maintenance man you could ever find and the place looks great.

What is going on in Cocoa Beach?

Prices are still falling rather rapidly, I even saw a canal pool home reduced to $325,000. If you don’t need to sell a single family waterfront home then my advice would be to hang onto for awhile. However if you really need to sell then find a agent who will show you what the competition in a comparable market, the worst thing that can happen in this market is to price yourself out of market. You really need to be in the lowest 3 priced properties that are comparable to yours. If you price too high to start with then you will miss showings and that will be the downfall of selling your property. The last thing you need is an agent who will tell you what you want to hear and waste your time with unrealistic expectations.

Update

Windward East

There is a new side tower unit 2 bedrooms 2 baths1450 sq ft priced at $335,000 on the 4th floor.

The potential flip on the 1st floor has been reduced to $185,000. That price is just about break even. Be very careful when you are considering a flip in today’s market. Whoever looks at this unit will look at when it sold and at what price it sold at previously. Please get good advice!

The Diplomat

The oceanfront unit with 2520 sq ft has been reduced to $649,000. This is still a hard sell but I wish them well.

Windrush

The 2nd floor unit with sand dollar floor plan that was listed at $354,000 closed for $310,000. This is typical of what is happening in today’s market.

If you are listing in the market today, list it at a little above what you will take. If you list at $60,000 or even a $100,000 above what is the realistic price then you just shot yourself in the foot or the head.

Peace to all

Still Crazy!

Greetings Neighbors

Some of the prices we are seeing is getting rather crazy!

There is now a 3 bedroom 2 bath condo on the 4th floor in south Cocoa Beach. Kitchen updated and looks very nice. Priced at $250,000, we are not sure what this will do to the appraisals once this unit closes.

Windrush

The side unit in the tower has been reduced to $199,900 from $220,000. 1st floor, no ocean view,1517 sq ft and a 2 car garage. Nice price!

The 2nd floor unit with sand dollar floor plan is scheduled to close next week. I will let you know what it closes for.

Windward East

The 1st floor unit that is being flipped is still active and still priced at $190,000. Time is getting short for the profit.

The 4th floor unit is still priced at $459,000. This is a tough sell since you can buy a brand new unit with 2000+ sg ft, direct ocean priced at $499,000. I wish them well and hope it sells for full asking price.

The diplomat

Nothing new has occurred and the 2 oceanfront units haven't had price changes.

Activity is still occurring and buyers are still trying to get good deals. The good deals are what is closing. If you are overpriced right now, you may have to ride it out for awhile.

Jim Bagwell

Guess whos coming for dinner?

Have you ever had one of those friends or relatives that always knew what time dinner was served and just happened to drop by. This crane is such a friend, our neighbor feeds him so he drops by at the same time everyday.

OK so lets review!

We have had 2 more units go under contract in our 3 complexes.

Another front building unit at The Diplomat 2/1 750 sq ft. List price is $155,000.

A 2nd floor direct ocean, sand dollar plan, 2/2 1444 sq ft. List price is $354,000.

So far in 2008 there have been 12 closed units in our 3 complexes.
The Diplomat 4 front buildings average sold price $131,750 1 oceanfront $170,000
Windrush 1 front unit $137,500 3 tower units average sold $312,500
Windward East 1 town home $184,000 2 1 bedroom in the tower average $177,500

In the same period in 2005 there were 7 units sold.
The Diplomat 2 front units average sold price $186,000
Windrush 4 units in the tower average sold price $302,000
Winward East 1 town home $235,000

Our 3 complexes are still very desirable especially at today's prices.

Hang in there neighbors.

Jim & Ada

Hello to all you great people

We have not had much activity during the last week in our 3 complexes.

There is what appears to be a much updated unit now listed on the 4th floor of Windward East. This is a 2 bedroom 2 bath unit with 1394 sq ft of living. It looks very appealing. Priced at $459,000.

Now as you can imagine I have a vested interest in Windward East since it is my home. You could go to The Constellation in South Cocoa Beach, a unit there is over 2400 sq ft, designed by Clay Stephens (renowned local designer), underground parking, and priced at $489,000. Hmmmm!


If you are buying or selling you have to do the research. Good buys are there, you just have to find them.

49 properties have sold in April with another 39 under contract in the Cocoa Beach, Cape Canaveral area. Could it be the bottom, maybe but I couldn’t call it.

Hope you all have a great Sunday.

Jim Bagwell

Flip ???

I am sure you have all seen the new listing in Windward East. If you have been reading you will remember that one property that I recommended as a good buy was the 1 bedroom unit on the 1st floor that was listed at $179,900, I said if you really tried to keep it rented you would almost be in a positive cash flow situation. The unit closed for $155,000 which was a great deal for the buyer.

Well it looks as though the 1st flip in our 3 complexes is trying to be accomplished in a very long time. This unit is back on the market at $190,000. The old rule for turning Real Estate was that it has to be closed for a minimum of $10,000 return to the investor. This is close but it could be done. In a slow market the fly in the punch bowl is the carrying cost. Even if you paid cash you are still paying condo fees and taxes each month until closing. So you can see that it is imperative that you close quickly. The problem is that in the market today even though we see some improvements there are very few quick closings. I wish them the best of luck and it would great to see a flip.

Other possibilities

The front buildings in the Diplomat have had closings at prices that could also come close to being cash flow positive. There have been 4 closings this year in the front buildings. The average list price was $161,100 the average closed price was $131,750. The last one was listed at $175,000 and closed at $112,000. Now at this price if you crunch the numbers and wait for the rebound, an investor will look at these units. When I see the shuffleboard tournaments it sure looks like people enjoy staying there.

Optimism

I have cautious optimism about the remainder of the year. There have been more sales this year than the same period last year although the sales prices are down for the same period.

We have a long row to hoe but we are getting there!

Jim Bagwell

Any news that is news!

Hope all is well in our little beach world!

Has anyone else encountered the crazy crane that visits our backyard at Windward East? This beautiful bird comes in for a landing in the grassy area and walks around giving the eye to anyone who happens to be outside. Now I am not a timid person but when he walks right up to you and looks you in the eye at least I think he is looking you in the eye since his eyes are on the side it totally freaks me out so I usually run inside like a little girl.

New activity

Two new listings in the Diplomat. Direct ocean 2/2 900 sq ft priced at $375,000 this is on the top floor so it may get offers but the competition is fierce. Front building 2/1 750 sq ft priced at $162,000 on the 2nd floor. The front buldings are priced all over the place.

Reduced price

there is a home on Esther that is now priced at $599,900. This home sold in 2005 for $400,000, it was then taken down and rebuilt. It is now a beautiful 2 story home with 3250 sq ft 5 bedrooms 3 1/2 baths with dock and all the bells and whistles. The downside is the street is year's away from catching up to this home. If however one wanted this for their home and not instant gratification then you could enjoy this beautiful waterfornt home and wait for the equilty to build.

Hang in there and don't take any wooden nickels.

Jim Bagwell