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JUNE 2020 VS 2021
UNEMPLOYMENT
USA UNEMPLOYMENT RATE
Adam's Insight: COUNTRY 2 STEP, 2 FORWARD AND 1 BACK
The unemployment increased in April, the change the in wrong direction caused many concerns. However, in May the unemployment started moving in the right direction again. June, is another month of concern. What caused the unemployment rate to increase? I don't know why but I do believe that the United States has hit the new "normal" of unemployment. A 6% unemployment rate is not healthy for a country and it may contribute to inflation as the government prints money to mitigate the lack of taxable income. The best form of inflation protection is real estate.
FLORIDA UNEMPLOYMENT RATE
Adam's Insight: FLORIDA FOLLOW SUIT
As homes prices soar and Jeff Bezos completes a mission to space, Florida's unemployment rate increases following the national rate. 0.1% may not sound large but with a population in Florida of 21.6 million that's 21,600 people are not out of work. That means 21,600 families struggling to buy meals and pay rent or mortgages.
HOMES SOLD
HOMES SOLD IN BREVARD COUNTY
May 2020 899
May 2021 1,343
June 2020 1,343
June 2021 1,507
Adam's Insight: MORE HOMES SOLD THAN THE MONTH BEFORE
The 1,507 homes closed in June, this means that these homes went under contract in May. June was a busy month and I believe that July will be the same. There are 5,000 registered Realtors in Brevard County. If every transaction had 2 agents involved, that means there were 3,014 possible commissions and nearly 2,000 Realtors didn't make a paycheck (I have a feeling some of us had multiple transactions.
HOMES SOLD IN COCOA, FLORIDA
May 2020 76
May 2021 104
June 2020 128
June 2021 122
Adam's Insight: ANOTHER RECORD BREAKING MONTH
The City of Cocoa has been able to keep sales high even as the unemployment increases. The City of Cocoa is not a city of tourism, Cocoa is where the working families live that support the tourism parts of the county. The world is still moving to our community, we are happy for new neighbors.
ACTIVE HOMES FOR SALE
HOMES FOR SALE IN BREVARD COUNTY
May 2020 3,495
May 2021 1,297
June 2020 3,056
June 2021 1,309
Adam's Insight: SUPPLY IS INCREASING EVEN THOUGH RECORD NUMBERS ARE SELLING
For the last year the inventory has decreased, month after month. May was the first increase in inventory on record and now we are on a second consecutive month of inventory increases. If this trend continues, home prices will level off and some areas will see home values drop. Don't worry, inventory levels are still less than 1/2 of a stable market. It is still a great time to sell.
HOMES FOR SALE IN COCOA, FLORIDA
May 2020 241
May 2021 82
June 2020 211
June 2021 88
Adam's Insight: AGAIN, ARE THE FACTS BACKWARDS?
In June 2021, 122 homes sold, yet there are only 88 have for sale? This number can be confusion because a home isn't sold until is has closed and money has changed hands. An Active Listing is home that is not under contract, so most of the homes that sold in June went under contract in May. That being said, last month 104 homes sold and this month there are only 88 available. Another month that sellers should earn top dollar.
ABSORPTION RATE
The absorption rate is a measurement of how long the current inventory of properties would last at the current rate of sales. For example, in 2008 (a buyers market) the rate reach 23.45. This means that the rate of sales in August of 2008, there were 23 months of home inventory on market. In September of 2020, the absorption rate of 1.93 (sellers market) means that there are very few options for buyers and only two months of inventory available.
ABSORPTION RATE IN BREVARD COUNTY
May 2020 3.08
May 2021 0.92
June 2020 2.8
June 2021 0.99
Adam's Insight: A MONTH OF RELIEF
Absorption rate is a hard metric to understand and often difficult to communicate what a rate of 0.99 means to the real estate market. This low absorption rate means that home values are increasing and if you want to buy a home you need to be preapproved and ready to offer the best package. We have fewer new listings than the number of homes that sold in the previous month. If you are a buyer you need to be prepared to make a great offer.
ABSORPTION RATE IN COCOA, FLORIDA
May 2020 2.46
May 2021 0.74
June 2020 2.23
June 2021 0.78
Adam's Insight: NOT MUCH CHANGE BUT ANY AND ALL IS APPRECIATED
The City of Cocoa just doesn't have much for sale. There isn't much new construction and the people that live here don't want to leave. If you want to join our community, you will need a good real estate agent and I happen to know a few. Amazon is moving here soon and I hope there is available housing for the employees.
AVERAGE SALES PRICE
AVERAGE HOME SALES PRICE IN BREVARD COUNTY
May 2020 $270,496
May 2021 $331,359
June 2020 $299,158
June 2021 $348,285
Adam's Insight: AS INVENTORY INCREASES, PRICES WILL FALL BUT NOT TODAY
The average price of a home is still much more than previous years, however we are starting to see pricing level off. Remember, a small change doesn't mean a trend has started, but we should keep our eyes open.
AVERAGE HOME SALES PRICE IN COCOA, FLORIDA
May 2020 $188,289
May 2021 $220,697
June 2020 $226,241
June 2021 $254,660
DAYS ON MARKET
MEDIAN DAYS ON MARKET IN BREVARD COUNTY
May 2020 23
May 2021 5
June 2020 31
June 2021 5
MEDIAN DAYS ON MARKET IN COCOA, FLORIDA
May 2020 19
May 2021 6
June 2020 21
June 2021 6
Adam's Insight: EVEN DOGHOUSES ARE EARNING TOP DOLLAR!
Real estate agents are starting to see that only the best offers get accepted. Every month homes sell faster than the previous month. This number will be the last to change in a market shift. Homes that are selling fast! Obligation free property pricing is available, inquire through our contact page.
SHORT SALES / BANK OWNED / AUCTION
SOLD SHORT SALES/BANK OWNED/AUCTION IN BREVARD COUNTY
May 2020 24
May 2021 8
June 2020 24
June 2021 19
Adam's Insight: MORE THAN IN THE LAST 3 MONTHS COMBINED
The banks have started to unload a few properties, however you will still pay full price. A three bedroom 2 bath in Melbourne is selling for over $200,000 bank owned.
MOST EXPENSIVE SOLD IN BREVARD COUNTY - MAY 2021
6275 N Highway 1, Melbourne, FL 32940
Sold Price: $3,500,000
Listed Price: $2,500,000
Living SqFt: 6,137
Year Built: 2019
Bedrooms: 5
Baths: 4 Full 1 Half
Acreage: 0.7
Listing Agent:
Reference:
Written by:
Adam Maxfield
Realtor
Keller Williams Space Coast Realty
(321) 423-8283
Adam@MaxfieldHomeSolutions.com
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