This article is part of "The Patrick AFB Online Relocation Package".
Recent History For Home Values In Brevard County FL, "Florida's Space Coast":
The median home price in Brevard County, like almost everywhere else, has declined since its highs in 2005. From 2003 to 2005, the median single-family home price shot up 72% in two years. That was "silly appreciation" and was one of the highest in the country. This obviously was way ahead of what the "normal" appreciation would have been, and should have been. It was fueled by a lot of speculation, new construction, cheap money, and the overall hot market. It did create quite a problem though. For first-time homebuyers, and many already living in the area they had been priced out of the market. Oh my how things have changed.
As with the rest of the country we have had quite a slide in the median home price since those highs of 2005. As of the third quarter of 2009 prices have declined 47% from their peak. Foreclosures and short sales have put an incredible downward pressure on home values. It isn't all bad news though, the number of homes sold in the third quarter of 2009 is up 17% compared to the third quarter of 2008. (1728 in 3Q 2009 vs 1472 in 3Q 2008), and inventories have been declining. I think much of this activity is due to the $8000 tax rebate that the government has been offering, but we'll see if this activity continues after the rebate deadline of November 30th, 2009.
It appears for now that the downward spiral of home prices may have reached a plateau. The median home price in Brevard County has been flat or has had a little bit of an uptick in the past six months. This can be seen in the chart below.
*Chart data from Brevard County MLS: Sold; Residential
Right now may present a great buying opportunity for those looking to get into the market. With interests rates at historic lows, now just might be the time. There are many financing programs available to ALL military personnel moving into and around Brevard County
There are many homes on the market (but inventory has been shrinking) which allows, you as the buyer, to find the right home for you, at a good price.
If you are selling a home, and, it is priced correctly, IT WILL SELL. I have done this many times in this market. Pricing, strong marketing, and excellent condition of your home are the keys to accomplishing this.
ABSORPTION RATE is a calculated ratio that can show you the relationship between supply and demand. It is calculated by the total number of homes for sale at the end of the month divided by the total number of homes sold. The ratio represents how many months it would take to sell all the homes on the market at the current pace.
The Average Residential Absorption Rates For Brevard County:
Looking at these numbers and trends, you can see that Brevard County is still in a "Buyers'" Market, but the inventory of homes is starting to come down and is starting to level out.
What does all this mean?
Now is your opportunity!
- Historicly low interest rates and an $8000 Tax Credit for first time homebuyers, untill November 30th.
- If you are buying there are plenty of deals available and sellers are willing to negotiate.
- If you are selling, don't listen to all the bad news. IT CAN BE DONE! You just need realistic expectations and an aggressive marketing plan.
Brevard County is great place to live, and this is just one of those inevitable cycles in the real estate market. This cycle is just a little more severe than most. The market will rebound!
John S Murphy is a full-time REALTOR® with RE/MAX Elite in Melbourne, FL. He is also the creator of www.AmericanAirmanhomes.com, a website that specializes in PCS, DOD, and Civilian relocations to Patrick Air Force Base, FL. --- Doing a home search? Visit his website and search the entire Brevard County MLS.
John S Murphy
Certified Distressed Property Expert