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. It had to - 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 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, saw that they had been priced out of the market. In addition, Florida's "unique" property tax caps functionally kept people already living in Florida from moving up or downsizing. If they moved to a new home, their property taxes would have increased dramatically. The obvious result was too few buyers and too many homes for sale.
On January 29th 2008, the property tax issue was somewhat relived by a referendum vote, although more needs to be done. The change will allow a significant number of Florida residents to move up from that starter home or downsize. This has generated a new pool of buyers that have been basically "trapped" in their homes for the past few years.
At the end of 2007, we were still about 15%* ahead of the median price of 2004, but after the first half of 2008, the median home price is down 14.5%** from the median price of 2007. That puts home prices right now slightly below 2004 levels.
One caveat for those still on the sidelines - by the time you realize that the bottom has been reached, you are already too late, and things are on the upswing. Timing the bottom is a risky venture.
*Chart data from Brevard County MLS: Sold; Residential; Excluding 55+ communities
Right now presents a great buying opportunity for those looking to get into the market. With interests rates still 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: VA loans and the Florida Heroes program to name a few.
There are still 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 buyers market. Pricing, strong marketing, and excellent condition of your home are the keys to accomplishing this. Understand that you are not going to get the premium prices that you could have in 2005, but if you bought your home before 2004, you probably will get more than you paid for it.
*Chart Data From Brevard County MLS: Sold; Residential; Excluding 55+ communities
Data from Brevard County MLS: Sold , Residential
After an average of 3% declines in median home values per quarter in 2007 and an 8% decline in the first quarter for 2008 things appear to be settling down. The median home price from the end of the 1st quarter of 2008 to the end of the 2nd quarter fell only 1.7%. This is reflected with moderate demand and a declining inventory of homes on the market. We may be starting to bottom out.
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:
2004: 3
2005: 5
2006: 14
2007: 17
2008: 18 (1/1/08-6/30/08)
Looking at these numbers and trends, you can see that Brevard County is definitely in a "Buyers'" Market.
What does all this mean?
Now is your opportunity!
- If you are buying there are plenty of deals available, but due to the referendum vote in January 2008, there is a new pool of buyers entering the market.
- 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. The unemployment rate in Brevard is lower than the national average; we have a lot of high tech industries hiring in the area, plus the weather is fantastic! The market will rebound!
At AmericanAirmanHomes.com, you can download the Brevard County Real Estate Market Report. If you want, you can print it out and hang it on your fridge next to the spelling test.
John S Murphy is a full-time REALTOR® with RE/MAX Elite in Melbourne, FL, and the creator of AmericanAirmanHomes.com, a website that specializes in Military PCS, DoD, civilian, and retired military relocations to and from the Patrick AFB area in Florida. Please feel free to visit the website where you can search the entire Brevard County MLS.
*Based on Brevard County MLS Data: Sold 1/1/03 -12/31/07; Residential; Excluding 55+ communities
** Based On Brevard County MLS Data: Sold 1/1/08 - 6/30/08; Residential; Excluding 55+ communities