Melbourne Florida Homes for Sale

As we get closer to the end of another year, we begin to develop business plans for the next year and try to predict what the selling season will be like in the short future.  We can some times look to trends to give us an idea of where the next year will fall but real estate has been unpredictable since 2007 in Florida.  Here is what has been going on in October 2011 in Brevard County, Florida.  Homes that sold in October 2011 versus October 2010 are almost flat – down .8%.  This would be another sad tale of the housing market if it was for the performance of sales earlier in the year.  2011 is still running more than 11% up over last year in number of homes sold.  These results include single family homes, townhomes and condos. 

*New Listings are down from October 2010 – (12.55%) – YTD down (20.26%)

*Sold Listings are down from October 2010 – (.75%) – YTD up +11.38%

*Volume Sold is up from October 2010 – +9.49% – YTD up +7.64%

*Average Sale Price is up from October 2010 – +10.31% – YTD down (3.36%) 

Here is what is selling in Brevard County, Florida in average sales price:

$0-$49,999 - 131 units sold (19.8%)

$50K-$79,999 – 115 units sold (17.4%)

$80K-$99,999 - 73 units sold (11.0%)

$100K-$159,999 - 151 units sold (22.8%)

$160K-$199,999 - 59 units sold (8.9%)

$200K-$249,999 - 49 units sold (7.4%)

$250K-$299,999 - 23 units sold (3.5%)

$300K-$399,999 - 27 units sold (4.1%)

$400K-$499,999 - 20 units sold (3.0%)

$500K+ - 13 units sold (2.0%)

48.3% of all homes sold in Brevard County were priced between $0 and $99,999.  31.8% of homes sold were priced between $100,000-$199,999. The average median sales price in Brevard County for October 2011 was $140,227 which is up from September by 3.76%. 52.5% of all homes sold in October 2011 were paid for with cash which is much higher than the national average.

Current inventory on the market is broken down like this:

Residential Homes              3,048 on the market - 778 are short sales - 239 are bank owned

Condos                                    853 on the market – 114 are short sales - 89 are bank owned

Townhomes                          226 on the market - 53 are short sales - 23 are bank owned

Total                      4,127 homes on the market - 945 are short sales - 351 are bank owned

22.9% of homes on the market in Brevard County are listed as a short sale. 8.5% listed on the market are bank owned properties. Inventory has been dropping from 2011 although not as steady as it was in the begining of the year.  If inventory continues to drop we could expect to see more homes back on the market from banks needing to unload properties. So, just because inventory is going down it does not mean the area will see immediate price increases. If demand continues to keep pace and sellers keep their homes off the market, it could start to create average median price increases.  

So, those are the home sales statistics for Brevard County Florida for October 2011.

National home sales trends are important but real estate is very local and the performance of the market is also very local. Despite national trends, here is what has been going on in September 2011 in Brevard County, Florida. Homes that sold in September 2011 versus September 2010 are down 14%. A couple of months of strong sales results could have robbed the normal sales from September bringing the year to date sales to still be up 11.66% over 2010. There were negative sales results in all categories: single family homes, townhomes and condos.

*New Listings are down from September 2010 – (21.12%)

*Sold Listings are down from September 2010 – (14.00%)

*Volume Sold is up from September 2010 – (12.09%)

*Average Sale Price is up from September 2010 – +2.22%

Here is what is selling in Brevard County, Florida in average sales price:

$0-$49,999 – 92 units sold (14.8%)
$50K-$79,999 – 132 units sold (21.2%)
$80K-$99,999 – 74 units sold (11.9%)
$100K-$159,999 – 143 units sold (23.0%)
$160K-$199,999 – 69 units sold (11.1%)
$200K-$249,999 – 43 units sold (6.9%)
$250K-$299,999 – 21 units sold (3.4%)
$300K-$399,999 – 29 units sold (4.7%)
$400K-$499,999 – 9 units sold (1.5%)
$500K+ – 10 units sold (1.6%)

47.9% of all homes sold in Brevard County were priced between $0 and $99,999. 34.1% of homes sold were priced between $100,000-$199,999. The average median sales price in Brevard County for September 2011 was $133,610 which is down from August by 7.52%. 51.4% of all homes sold in August 2011 were paid for with cash which is much higher than the national average.

Current inventory on the market is broken down like this:

Residential Homes 3,067 on the market – 772 are short sales – 245 are bank owned
Condos 816 on the market – 109 are short sales – 93 are bank owned
Townhomes 217 on the market – 52 are short sales – 19 are bank owned

Total 4,100 homes on the market – 933 are short sales – 357 are bank owned

22.8% of homes on the market in Brevard County are listed as a short sale. 8.7% listed on the market are bank owned properties. Inventory has been dropping from 2011 although not as steady as it was in the begining of the year. If inventory continues to drop we could expect to see more homes back on the market from banks needing to unload properties. So, just because inventory is going down it does not mean the area will see immediate price increases. If demand continues to keep pace and sellers keep their homes off the market, it could start to create average median price increases but we are months from that happening at this point. So, if you are wanting to buy, now is a good time to take advantage of the market.

So, those are the home sales statistics for Brevard County Florida for September 2011.

Lifestyle Homes was recently featured on ABC’s Extreme Home Makeover for rebuilding a home in Cocoa, Florida. But that is not their only claim to fame in Brevard County. Lifestyle Homes has built their first Net-Zero Energy Home and it is showcased as a furnished model in the beautiful Capron Ridge community in Melbourne, Florida.

This breakthrough is part of Lifestyle Homes new SunSmart energy initiative. They have partnered with the Florida Solar Energy Center to produce a home that uses photovoltaic technology. These panels are placed in the roof system and absorb the power of the sun to produce enough electricity that would supply the needs of a family of five. This virtually eliminates the need for costly bills from the power company. This is just the start of a goal to build homes that can supply their own power and re-charge two electric vehicles on a daily basis.

Lifestyle Homes have been building homes in Brevard County Florida since 1984. They have established a reputation for building homes with solid construction and great aesthetics at a reasonable price. They currently build in 10 communities within Brevard County. Visit their St. Croix model featuring the Net-Zero Energy Plan in Capron Ridge and see what the future of residential construction holds.

For the 6th year, professional women’s tennis will visit Brevard County and tennis lovers can watch tournament matches between May 1-8 at Kiwi Tennis Club in Indian Harbour Beach, Florida.

The MIMA Foundation sponsors this professional tennis classic. World-class athletes will compete for ranking points and $50,000 in prize money. Players ranked as high as #25 usually play on the WTA Pro Circuit Tournaments.

There are plenty of free days where guests can stop in and watch matches for no cost. The tournament organizers have planned a variety of activities for different days during the tournament. There will be a kids day, a USTA league member day and a Mother’s Day brunch.

Audi of Melbourne is also in on the fun by offering a 2011 Audi A4 2.0 Turbo Sedan. Audi of Melbourne is selling tickets to win the vehicle and all proceeds are to benefit the MIMA Foundation of Brevard. Tickets sell for $150 each. If you test drive an Audi at the dealership you will receive a $50 discount on your ticket to win. There are only 750 tickets being sold.

The Melbourne Art Festival is back! It is a nationally recognized event that draws tourists and artists to historic downtown Melbourne every year. The event is host to over 250 artists who are exhibiting their work and competing for $38,000 in patron purchase awards and $27,500 in cash prizes.

The festival always draws plenty of local food vendors that set up and offer their goodies. They are going to be collectively set up as a Food Court this year off Depot Drive which will be convenient for the guests and vendors. Their is always live music and events for the kids. The festival planners will set up an entire Kids World where there are art workshops and activities to keep the little ones busy.

This event will draw approximately 80,000 attendees this year and you should be one of them. Join the city of Melbourne for their annual Art Festival and have a great time.

The new Da Vinci Robotic Surgical System at Holmes Regional Medical Center captures the power of high-level robotics and matches it to the most state-of-the-art health care. Holmes Regional is one of the main hospitals in Melbourne, Florida that serves the residents with their health care needs.

The Da Vinci Surgical System can be used to treat a variety of health conditions in a minimally invasive fashion. It is currently being used to treat a variety of cancer removal procedures, coronary artery disease, kidney disorders and uterine bleeding and fibroids. This technology is currently available at Holmes Regional but there are also plans to install another unit in the future at Viera Hospital which just opened their doors in April 2011.

The Health First Foundation is hosting their 29th Annual Ball aimed at raising funds for the Surgical System’s “Dual Console”. The event will be held April 16 at the Clemente Center at the Florida Institute of Technology at 6:30 pm. Tickets to the black-tie event are $225 and company sponsorships are still available. The theme of the evening is “An Evening of Modern Art & Da Vinci Robotics: Where Art and Medicine Meet” and guests will enjoy dinner, dancing and entertainment.

As a Realtor, many of us are confronted by either buyers or sellers who are distraught, disappointed or even confused by the market value of their home based on zillow.com. These homeowners believe that zillow is the bible of market value and may not be aware of what zillow is offering to the public.

Zillow does attempt to consolidate lots of public records in one space but this information is not supervised and managed by people. It is brought in and compiled through data feeds and the program uses general guides to interpret information. It does not have the capabilities to fine tune nuance in value and price that might be experienced in the market place because a buyer is willing to pay more for a school district or based on the desirability of an individual community. The system does use zip codes for value boundaries but that is still too general for most areas that might have a diverse representation of homes.

So, then how can zillow even be useful? Well it does base its information on public records including local tax appraisers information. So there is some basis for home value but it still may not be accurate because those valuations are then manipulated by factors that may or may not really apply to all home’s values. There is a way to understand how inaccurate the zillow value may be as long as you look in the right place.

At the very bottom of the zillow home page is a link to take you to a page that explains how the zillow home value tool or zestimate works. It is called the Zestimate Value & Accuracy as shown here:

A user can click that link and zillow explains more information about its zestimate system. There is also a chart that summarizes the accuracies of zillow based on major metropolitan markets or by state and county. Here is a sample for my home state Florida and Brevard County:

As one can see, even in a small section of represented counties in Florida, there is quite a variation of accuracy. If buyers and sellers are aware as to how accurate zillow is for their community or area, then they may have a better idea when they see a zillow zestimate as to what it means. Check out zillow and see how accurate it is for your community.

First time home buyers that are looking for down payment assistance may have access to a couple of bond programs in Florida depending on where you are going to buy. The way these bond programs work is the bond acts as a secondary mortgage on the property at a fixed percentage rate. Typically if the first time buyer sells the home down the road, these bonds have to be repaid to either the state or county where the funds were received. Here are two of those programs:

Florida First is a state bond assistance program. The program offers up to $7,500 in home buying assistance which can be used towards the down payment or closing costs. The bond has a rate of 5.0% now but it could change at anytime. Once the rate is locked it is fixed for the life of the bond. This bond is only applicable with a 30-year fixed rate FHA program and the buyer has to have a middle credit score of 620 to qualify. There are income limits and purchase price limits which vary from county to county. In Brevard County, a 1-2 person household has to make no more than $62,900 in combined income or $72,335 in a household with 3 people or more. The price of the home can not exceed $258,691 which in Brevard County is a lot of house these days. These buyers have to take an eight hour first time buyer class prior to closing on their home.

Brevard County Bond Program is another bond program that is offered by the Brevard County Housing Authority. It only applies to homes purchased in Brevard County which includes Titusville, Melbourne, Palm Bay, Cocoa Beach and Merritt Island. This bond is first come, first serve while funds last. The rate on the bond is at a low 3.9% rate. This program offers downpayment assistance up to $5,000. This program is only for first time homebuyers and the buyers must also take an eight hour class to received the bond prior to closing. This bond program abides by the same income limits as the Florida First bond and the sale price of the home can not exceed $258,691.

If you are a first time buyer looking at property in Florida, you can consult your loan specialist about these bond programs. If they are unfamiliar with these programs, I can direct you to lenders that know how to access and use these bonds for purchase. There is more information on the Florida Housing website.

You should come to Florida where the buying is easy . . .

Builders are still building in Florida

As most housing markets are depressed in value from their peaks in 2005 and 2006, many buyers that have not had the opportunity to ride the rise and fall of home values in the real estate market wonder why they would pay a higher price for new construction when they can get great value in a foreclosed home.

The builders have had a hard time in the last few years finding a small percentage of the buyers that were there before. They have offered incentives, changed their floor plans and altered product features to adapt to the buying mood and offer a great value home at a lower price. However, it can be hard for a buyer to wrap their head around the price. A new home built in 2006 may have sold for $180,000, is on the market as a foreclosure at $80,000 and the builder is building the same or comparable home today for $110,000. So why would the consumer choose to either pay more for the same/less or choose new construction?

There are several reasons why people are choosing new construction over a foreclosure and here are some of those reasons.

Warranty – Some people choose to a pay premium for the piece of mind they get in their new home warranty. Most builders warrant major and minor components for one year; some builders two years. There are also builders that offer 10-year structural warranties. On top of that, the manufacturers that have products in the home may also have their own warranty on items such as appliances, air conditioning systems, doors/windows, roofing material, flooring materials and even counter tops.

This edge has been rivaled by the foreclosure market with the growing offers of warranties on components by Freddie Mac in select homes or the buyer’s ability to buy a home warranty from American Home Shield or 2-10 Warranty. The buyer is still getting a warranty in these situations but they may not be as good as the builder warranties and most of these have service payouts that the home owner is responsible for in order to get repair work completed.

Built to the Most Current Building Codes – Florida has seen its share of hurricanes over the years and after devastating storms in the 90s, the state revised their building code to be more stringent on areas prone to wind damage particularly on the coasts. The Florida building code is updated every three years with revisions and exceptions added in between. The latest code on register is the 2007 code adopted in 2008 (so yes there is a new code coming). In 2004, there were changes put in place in regards to wind loads that had to be managed by roofs, windows and points of entry such as garage doors in coastal areas. Those changes were again modified in 2007. Buyers who want to feel like they have the best chance against a storm are likely to buy new construction because they feel like their home is safer and built better to match the potential storm conditions.

Energy Efficiency – Consumers have talked about being “green” until they are blue in the face. And with the adoption of the Montreal Protocol, the United States agreed to reduce ozone depleting gases in a staged program. The first noticeable impact to new construction was the requirement of a minimum 13 SEER air conditioning system installed in new homes as of January 2006. For those that don’t know, SEER (Seasonal Energy Efficiency Ratio) refers to the efficiency that the air conditioner cools the air as opposed to the amount of energy it consumes. As of January 2010, a home will also have R-410 as a coolant because manufacturers can no longer put Freon, R-12 or R-22 in new air conditioning systems and those coolants will no longer be manufactured after 2020. New construction will have newer, more efficient systems which impacts a home owners wallet every month.

Depending on the Stage of Construction a Buyer Can Select Cabinets, Countertops, Flooring, Appliances and Finishes.

Ability to Personalize – Why would someone buy a foreclosed home and then spend $40,000 to renovate the inside to match what the new owner wants in the home. The new home owner now has to live in dust and with contractor nightmares until the work is complete. The buyer should have the builder do the work and pay the premium to have the home done prior to closing.

Still Has That Brand New Smell – Just like when you buy a new car, when you buy a new home and you can smell fresh paint, new carpet and that clean plastic smell in new appliances, you know that you are about to live with things that are new. There are not years of mystery bacteria or mold hiding on the counters or pet hair from previous owner’s pets in the carpet. Especially for a family with children that might be concerned of where there kids are going to be, there is piece of mind that they are playing on a new, clean floor (or as clean as you can keep it.)

Buy Down Programs – The builders have been trying to sell homes so they are trying all kinds of things. A successful promotion which has been done by many of them are rate buy down programs. In these programs, the builder pays the buyer’s lender a premium to buy the mortgage rate down the first two years while the buyer is in the home and then the buyer hasa normal fixed rate the remaining life of the loan. This allows a home to be priced a little higher but adjust the monthly payment down so that it is more attractive for the homeowner in their monthly payments. The buyer will usually have to qualify for the higher rate that extends the life of the loan but that rate is comparable if not the same as current 30-year fixed rates. It is an affordable way for a buyer to get into a new home and is unlike the exotic loan products that were prevalent in 2005 and 2006.

Buyers should carefully weigh their options and think if they want to invest in a foreclosed home or new construction when they are buying in Florida in 2011.

The slow down over the last couple months may have spurred the step up in business for September. The annual trend is showing that listings are up a little more than 4% from last year while sold listings are just under flat from last year in Brevard County. The volume sold is down from last year but that is because the average home sales price has been in decline. The volume is down 6.98%. The average price is down from last year by 6.92%.

*New Listings are up from September 2009- +5.92%

*Sold Listings are up from September 2009- +.84%

*Volume Sold is down from September 2009- (10.13%)

*Average Sale Price is down from September 2009- (10.88%)

Here is what is selling in Brevard County, Florida in average sales price:

$0-$49,999 – 152 units sold (21.5%)

$50K-$79,999 – 144 units sold (20.4%)

$80K-$99,999 – 78 units sold (11.0%)

$100K-$159,999 – 150 units sold (21.2%)

$160K-$199,999 – 59 units sold (8.3%)

$200K-$249,999 – 49 units sold (6.9%)

$250K-$299,999 – 23 units sold (3.3%)

$300K-$399,999 – 25 units sold (3.5%)

$400K-$499,999 – 11 units sold (1.6%)

$500K+ – 16 units sold (2.3%)

52.9% of all homes sold in Brevard County were priced between $0 and $99,999. The average median sales price in Brevard County for September 2010 was $130,912. 55.3% of all homes sold in September 2010 were paid for with cash.

Current inventory on the market is broken down like this:

Residential Homes 4,798 on the market – 1,244 are short sales – 618 are bank owned

Condos 1,219 on the market – 214 are short sales – 122 are bank owned

Townhomes 348 on the market – 75 are short sales – 71 are bank owned

Total 6,364 homes on the market – 1,533 are short sales – 689 are bank owned