A Heavy Hand on South Cocoa Beach

Some of you may remember the photo above in a post last year about my favorite beach crossover in Cocoa Beach, 24th St. It was a wonderful thicket of dense, mature sea grapes and the sandy trail to the beach wound through a long tunnel in the vegetation. Sadly, the developer of the new Ocean Cove Condominiums next door did not appreciate the beauty of the old dune growth as much as I and has laid waste to all the old plants right up to his property line, apparently to open up the views for the lower units. The new residents in the building (if there ever are any) will likely never suspect their role in this callous destruction of one of Cocoa Beach’s little treasures.

The new “improved” crossover below. I am saddened by this remarkable lack of concern for the character of our neighborhood. I hope those responsible will re-examine their attitude about the community in which they hope to sell their units and take steps to make their footprints on the special place that is south Cocoa Beach as light as possible. This did not have to happen.

Well, I’m here to remind you
Of the mess you left when you went away.
______Alanis Morisette

 

grumpy hippies & the little red hen

We’re well into snowbird season now at the end of February and the usual mellow and easy pace of life in Cocoa Beach becomes somewhat more intense through the end of March. Traffic is not what the locals are used to and the strain is starting to show. It starts innocently enough late in January with an ill-timed U turn at 520 and A1A holding up traffic through two light changes and progresses to daily no-tee-time-available status at the Cocoa Beach Country Club. Blocker cars piloted by wrap-around-goggle wearing shuffleboard aces are strategically spaced out along A1A, cruise controls locked on 28 MPH, effectively turning normal traffic flow into a Macy’s parade without balloons and making a short drive up the beach an exercise in time management. At the Publix grocery store, shoppers must first navigate the all-male scrum around the free coffee at the front of the store to gain access to the actual game surface. Past the registers the shopping becomes much more competitive with success depending on a shopper’s ability to take or avoid the aggressive checks being thrown on every aisle by the coffee-drinkers’ partners. The approach to the check-out line can be the defining moment as players jockey for the shortest line and a well-placed titanium hip shot from Gretsky’s grandma with a full cart and a handful of coupons can turn a quick trip for a deli sandwich into a thirty minute outing. While these are all minor irritations, they are a favorite subject this time of year and we all indulge, from the laid back bicycle-riding Beach Shack drinking crew to the grumpy hippies at the Co-op. We love our snowbirds but we love to grumble more. Ain’t that America.

Why did the chicken in the photo above cross the road? Trick question. This chicken does not cross the road. I often see this little red hen in the morning between 5th and 6th Street South always on the ocean side of A1A. I’ve been noticing her for about a year now and her survival along that stretch of road during the morning traffic tells me that she is either very lucky or she does not cross the road. Hey, when you live on the ocean, why cross the road?

“We take the shortest route to the puck and arrive in ill humor.”
______________Bobby Clarke

 

Cocoa Beach Potpourri

This is a secret little kayak launching ramp on the Banana River behind the Cocoa Beach Country Club. I shot the photo early today on our first truly chilly morning of the winter. I was tempted to discard the flip flops in favor of closed shoes but habit overruled reason.

I thought for today’s report I’d sift through the available offerings and post my favorites. None of these are listed by my office. I’m more than a little surprised that some of these haven’t sold yet considering the price.

First up is a big price reduction this morning of a direct river 2/2 at River Lakes in Cocoa Beach just two blocks from the ocean. Comes with a private garage and is now offered for $165,000.

This next one is a mystery. Direct ocean 2/2 at Waters Edge in south Cocoa Beach offered for $164,000. Does the somewhat obstructed view and lack of a garage really mean this unit should be selling for less than $122 per square foot?

How about a direct river 2/2 at Harbor Isles for $169,000? It’s a short sale, so, that price is subject to bank approval. That’s half what these units were selling for a couple of years ago. There is also a lakefront 3/2 at Harbor Isles offered for $190,000. Both of these have private garages and use of three pools.

Lowest price unit with a deeded boat slip is a 2nd floor, 2/2 unit at Beachwalk behind the Publix Plaza offered for $199,000 with garage.

There is a 2nd floor, direct river 2/2 at the small River Place building in south Cocoa Beach offered for $197,900. It has an unobstructed view across the wide part of the river to south Merritt Island and the beach is right across the road. Comes with a garage.

Among the short-term rental condos there are several that stand out. Lowest priced short term rental unit in Cocoa Beach is a no-view studio at the Marlin Apartments behind the Holiday Inn, asking $130,000. Lowest priced 2/2 unit in Cocoa Beach is a side view Chateau next to the Pier offered for $239,000. It has a little peek of the ocean. Lowest price 2/2 with an unobstructed ocean view is a top floor Spanish Main for $299,000. Photo of view below.

My favorite of the available short-term units is a 4th floor south view Cape Winds one bedroom unit. The one bedroom units at Cape Winds are unusual in that they have two full baths making them comfortable for four people. They rent in the $900 per week range making the asking price of $179,000 quite attractive. View from this unit below.

In non-waterfront properties, there is a foreclosed, 2/2.5 townhouse, 2 blocks from the ocean and downtown Cocoa Beach with 1827 sq.ft. asking $124,900.

Lowest priced waterfront single family home is a partially gutted 3/2 on Cocoa Isles Blvd. Asking price; $209,000. Needs lots of work. Builders were paying $400,000 for these houses a few years ago and tearing them down to build new ones. If you don’t want to have do any work, you can get into a big, 3/2 home in excellent condition on the water with dock and boat house close to the Cocoa Beach schools for $370,000. View below.

Note to prospective condo purchasers: Freddie Mac and Fannie Mae have just announced revisions to their down payment requirements for Florida condos. If you haven’t talked to your lender in the last week about your condo purchase, you need to check back in to see if your loan is effected. Even though rates continue to fall, standards are becoming increasingly strict, even for owner occupied units.

“Your time is limited, so don’t waste it living someone else’s life.”
____________Steve Jobs

 

System of a Down

Delta rocket vapor trail over Cocoa Beach

Today we get another case history of a bad selling strategy. This is the price history of a 3rd floor original condition, side view condo in an older oceanfront building that has been on the market for 687 days.

Jan. 17 2007 – first listed for $499,000
Jan. 13, 2008 – price drop to $349,900
May 10, 2008 — 2nd drop to $324,900
June 12, 2008 — 3rd drop to $319,900
Aug 08, 2008 — 4th drop to $315,900
Sept 08, 2008 —5th drop to $310,900
Oct 09, 2008 —-6th drop to $305,900
Nov 08, 2008 — 7th drop to $300,900
Dec 04, 2008 — 8th drop to $299,900

After 687 days on the market this seller has shaved 40% off his asking price. During the time since first listing there have been sales of five units in the building, two for $330,000 and three for less than the current asking price. Several were in better shape than the subject unit. Today after eight price drops he is still asking more than two other currently-listed units in the building. My suspicion is that the price drops are not over if he seriously wants to sell. Since the day this unit was first listed, 181 oceanfront condos with at least 2 bedrooms and 2 baths have closed in Cocoa Beach and Cape Canaveral for less than the original asking price of this unit. Sellers take note. This is not the way to sell your unit.

“You say it best when you say nothing at all.”
_______Paul Overstreet and Don Schlitz

 

Doo-Doo

A fun fall day in and out of the water in Cocoa Beach.

The word doo-doo still makes me smile years after I first heard my mother use it to describe something that was often referred to in much less attractive terms by others. The real estate machine and it’s members are notorious for using similarly softened words and phrases to describe the real estate market when it’s not pretty; “soft landing” “slowed market” and so on. The surprising increase in sales numbers in September and the accompanying fall in median prices is being veneered with a pleasant-sounding spin once again by the cheerleaders, but, I still suggest maintaining the same level of diligence and skepticism I have been preaching for the last few years. Are there deals out there? Absolutely, but, some buyers, perhaps buying into the “doo-doo” speak of their agents, are overpaying for properties. Run your comps, look at the competition and factor in some insurance to the downside when making your offers. We’ve had some outstanding deals so far this month but there have been a couple of stinkers mixed in. If your agent is preaching the positive aspects of this market (time to buy, bottom, etc.) or you suspect that she is more concerned with inking a deal than in her representation of your interests, take a breather. We agents only get paid when a deal closes and sometimes the lure of a commission check may be enough incentive for a hungry agent to describe a turd in less offensive terms if it means getting a sale. Crap by any other name …

Click here for a list of all 16 closed sales in Cocoa Beach and Cape Canaveral since Oct. 1.

“It is better to know some of the questions than all of the answers.“
_______James Thurber

 

Currency Exchange Implications

Cocoa Beach kids prepare the boat for a sunset boat ride on the Banana River.

If you’re a foreign national and are planning on using another currency to purchase Florida real estate, you need to be aware of the exchange rate trend. Exchange rates have moved substantially in recent months in favor of the US dollar against most currencies, the Japanese yen a notable exception. The future trend can’t be predicted but the recent move is cause for some concern if one is planning on taking advantage of the favorable exchange. One example: A famous Australian surfer purchasing a Cocoa Beach condo on July 1 this year needed 23% less Australian dollars for that purchase than if he waited just two months later simply because of the rally in the US dollar. Click here to read Dan Green’s succinct post on the implications of these recent currency exchange movements as they apply to purchases of real estate.

“You can complain because roses have thorns, or you can rejoice because thorns have roses.”
_____Ziggy

 

Failure to Grok

Financial system rescue. On the one hand we have Treasure Secretary Hank Paulson telling us that quick action is imperative to avert imminent disaster while others are expressing skepticism about the immediacy of the problem and the cost-effectiveness of the plan considering the scale of the taxpayers’ commitment. And of course we have those who are politicizing this issue, either criticizing or cheerleading the plan, depending on their own agendas. From the caliber of questions I saw being asked yesterday in the Congressional hearings, the average Congressman has as firm a grasp on the issue as a caveman has on Avagodro’s constant (top of page). Thanks to Steve H. for bringing up this number. Don’t ask.

How will a bailout or lack of a bailout affect the Cocoa Beach and Cape Canaveral real estate market? To be honest, I’m having trouble sorting out the possible impact. I’ve listened to the brain trust on CNBC parsing the plan and I’ve read as many commentaries as I could cram in between taking care of everyday business and I’m stumped. I want to believe that the smart guys in control will fix everything but then I remember that it was the smart guys who got us in this mess. Meanwhile, in Cocoa Beach and Cape Canaveral, MLS activity is steady but slow despite the doomsday rhetoric on the tube with 27 closed residential sales so far in September. While I continue to absorb info and postpone opinion, I think I’ll walk over to Coconuts on the ocean for a seared tuna sandwich and watch the waves. Armegeddon can wait.

The drop below 6% for mortgage rates didn’t last very long and the nationwide average is well off it’s brief low of last week.

There are no new listings or price drops in the past week that I think worth mentioning other than a direct ocean 2/2, 2nd floor unit with a wide-open view in south Cocoa Beach for $282,500. The 2nd floor direct ocean 2/2 at Waters Edge is, remarkably, still available at an asking price of $219,000. Someone picked off a 2nd floor, 2/2 south view at River Lakes for a shocking $162,500 and a top floor A building Mystic Vistas unit is under contract for less than some of the auction prices back in May in the C and D buildings.

“The sad truth is that opportunity doesn’t knock twice. You can put things off until tomorrow but tomorrow may never come. Where will you be a few years down the line. Will it be everything you dreamed of? We seal our fate with the choices we take, but don’t give a second thought to the chances we take.“
__Gloria Estefan

 

Heaven in a Small Dish

South Cocoa Beach delivered a knockout last night. It began with a simple spinach salad and lobster bisque followed by fresh grilled local grouper perched atop layered vegetables. All were excellent and I would normally have ended my meal at that, quite satisfied, but, since it was my birthday, I decided to go for a dessert. Holy cow! As a redneck gourmand my descriptive skills are somewhat lacking but I’ll try. What appeared to be a straightforward crème brûlée revealed a few seconds into the first bite subtle flavors of peach that shifted into airy traces of lavender mixed with the toasted caramelized sugar that was last to dissolve on the tongue. This is only the second time that I’ve ordered dessert here, not being a fan of sweets. Both times, though, I’ve experienced such complex layers of flavors that I find myself slowing my eating to a crawl trying to discern each flavor shift. Last time was a similar dish, a crème brûlée but with flavors of bourbon and pepper drifting in and out of the background. All this gushing from a not-into-sweets guy. Thank you to The Fat Snook for once again delivering an eating experience that I’ll be daydreaming about for days to come. I’ll be back.

“One of the very nicest things about life is the way we must regularly stop whatever it is we are doing and devote our attention to eating.”
~Luciano Pavarotti

 

Ahhhh, September in Cocoa Beach

Osprey riding the updraft over ocean condos this morning.

Welcome to the best time of year in Cocoa Beach. Summer is over on the calendar but the only indication on the ground here is the lack of traffic and small number of people on the beach. The summer tourists are gone, the kids are back in school and the snowbirds are months away from their annual influx. The weather is balmy and the water is warm and should stay that way through November.

A positive development this week is the dramatic decline in long-term mortgage rates following the Fed’s bailout of Fannie Mae and Freddie Mac. 30 year fixed rates are once again below 6%. Real estate sales on the beach are slowing as they do every year this time. We fell back below last year’s sales numbers in July and August and should follow the seasonal trend of declining total sales through November. That is positive for buyers and negative for sellers. Some of the more notable sales so far this month include;

5th floor direct ocean 2/2 Windjammer for $275,000
2/2 Beachwalk corner with boat slip and garage for $154,000
3 yr.-old, 3/2.5 River Gardens townhome w/2 car garage $175,000

One note about the inventory numbers below; there is a shadow inventory of luxury condos held by the developers that isn’t included in the MLS numbers. By my unscientific count there are in excess of 100 additional over-$500,000 condos available for purchase in Cocoa Beach and Cape Canaveral that are not included in the MLS inventory of 78. If you’re thinking of dipping your toes into this dangerous market segment, you need to understand the implications of this inventory and more specifically the implications of a high number of unsold units within a complex. You also need to thoroughly investigate the condo association’s financials and budget. If the condo fees seem too low they probably are and will almost certainly be raised to adequately insure and maintain the complex. It’s not uncommon for developers to keep fees low until a project is sold out. The owners at Crescent Palms can speak to this; the previous $300 a month has been increased to $505. Also, if buying in an older building, ask about upcoming concrete projects. Even if a seller is willing to pay the assessments for you, do you want to buy into a building just embarking on a project that could take two years to complete? Jackhammers and construction crews can make your beach experience less than idyllic. Grill your buyer’s agent for all details about your target buildings.

MLS inventory Sept 12, 2008 Cocoa Beach & Cape Canaveral

Condos, all prices_____733
over $500,000________78 – 28 sold since New Year’s Day
Single family homes___118
over $500,000_________42

My favorite, attractively-priced listings in the MLS right now include;

9-yr old, 4/2 half duplex steps from the beach for $210,000
Big, 3/2 canal-front condo with boat slip for $235,000
Big, 4-yr old, 4th floor, 2/2 direct river w/expansive views for $266,900
Big, 8-yr old side ocean view 3/3 for $299,900 (sold in ’06 for $600,000)

If you have questions about our market or you’d like to know more about these or any other listings, please email me.

One last note about my earlier report on the Mystic Vistas auction in May; I incorrectly reported that 12 units had closed from the auction. The actual number of closed sales (as recorded on the tax appraiser’s site through Aug.20) is only 11, less than half the number widely rumored to have been sold at the auction. It is entirely possible that the developer is giving buyers longer than the stated 30 days to close but, at this point, we’re past 90 days and counting, so, it seems likely that 11 is the real number. If that changes, I’ll update in a later post.

“Fast is fine but accuracy is everything.” Xenophon

 

TS Hanna Sept. 5, 2008

A couple of frame grabs below from the Cocoa Beach Pier cam at high tide, 1 PM today, Sept. 5, 2008. Tropical storm Hanna is about 100 miles due east. Wind is 25 mph out of the WNW and air temp is 77 degrees. No rain at the moment but small showers earlier this morning. The 20 mile buoy is reading 17.7 foot swells with 12 second periods. Surf is bigger south but cleaner at the pier and north into Cape Canaveral.

A stoked individual drops in on a big left out in front of the pier.

Also the occasional right peels through. No takers for this one.

Surfing can only be peripherally explained and described. It is far too complex and much too internalized to approach in any other way.
__________________Steffen Mackert