MARKET AREA UPDATE
Report as of: 1Q 2Q 3Q 4Q
Year: 2015
Market Area (City, State): MSA: Palm Bay-Melbourne-Titusville, Florida
Provided by (Company / Companies): Prudential Sterling Properties
What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate)
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Define Market Area: Urban (city limit area only) Metro Area (as defined by MSA) Other: Please explain:
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(detached) / Condominiums / Townhomes
(attached)
**Sales Price (current)
Choose one: Average Median / $ 189,081 / $ 161,152
**Sales Price (same time prior year)
Choose one: Average Median / $ 160,490 / $ 147,044
Average Days on Market – list to contract (current) / # 38 (Median DOM)
Increase Decreasing Stable / # 40
Increase Decreasing Stable
Absorption – Months of Inventory (last 3 months)
Number of active listings divided by the average # of sales per month
(for the last 3 months) = # of months needed to sell existing inventory / # 3 / # 4.8
Absorption – Months of Inventory (same time prior year) / # 3.4 / # 5.0
Active Listings / # 2,453 / # 1,003
Closed ( total last 3 months) / # 2,274 / # 645
Expired Listings ( total last 3 months if available) / # Not Available / # Not Available
Change in Home Values / % 17.8
Increase in past 3 months
Stable
Decreasing in past 3 months / % 9.9
Increase in past3months
Stable
Decreasing in past3months
Sold LP/SP Ratio (last 3 months) / % 93.1 / % 92.7
**Average = the result by adding all sales prices and dividing by the number of units sold Median = denoting the middle of the range of values
How would you rate the overall economic conditions in area as defined above: Mixed Stable Healthy Shrinking Depressed
Supply of Listings: (Single family) Shortage Oversupply Balanced ~ (Condo/Townhome) Shortage Oversupply Balanced
Overall Market Conditions: Active Stable Sluggish Flat Depressed
Unemployment Rate: % % 6.1 Average – Please check trend: Increasing Decreasing Same
Please describe local economic conditions/climate: (draw upon newspaper articles concerning the coming and going of corporations, layoffs, etc.)
Our MSA/County is has been going through a period of growth over the past couple of years, and it does not appear to be stopping anytime soon based on the news from the EDC and the local newspaper. Embraer is relocating operations from Brazil to Melbourne. Lockheed is rumored to be considering an expansion to add 100 new jobs to the area. Northrop Grumman has had a group moves from Long Island & California to Melbourne. Merritt Island Boat Works is moving in the old Sea Ray factory to build yachts and is projected to bring 380 jobs to the county. Despite the initial impact from the loss of the space shuttle program (our area is known as "The Space Coast"), we are seeing an upswing in the space-related industry, with SpaceX and United Launch Alliance bringing at least one rocket launch per month.
With the influx of new residents, we are seeing a smaller supply of housing inventory and multiple offers are becoming commonplace, especially in certain pockets of the county. Builders have been making a strong comeback to help with the lack of inventory options. Our local real estate board does not typically allow builders to place their current & prospective listings in the MLS database, so the agents individually have to participle in builder tours and stay in communication with the builders to know the inventory, availability, and price ranges for their customers. While the MSA statistics show an average sale price of $189,081-SFH/$161,652-C&T, it doesn't reflect the average prices of the "hot" markets in our area-Viera/Suntree, Central/South Beaches, Merritt Island, where the values are much higher, from averages in the low $200,000s to mid-$300,000s.
Our rental inventory, especially short term rentals and those properties who allow pets, has been greatly reduced as well. This is due to the increase of the population, with many of them wanting to rent short term before they purchase to complete both transactions within 12 months (the typical time frame allotted for relocations to be completed). Many properties (in particular, condos & townhomes) are not pet friendly, especially for mid to large size dogs and multiple animals. Regarding rental assistance charges, that is a brokerage based service policy. The level of assistance depends on any finder's fees charges. Our MLS does allow for rentals to be showcased (with the exception of apartment complexes) and rental commissions are obtained from the landlords. They are typically small; About 1/4 of one month's rent before agent splits at their respective brokerages. Some brokerages will charge an additional finder's fee (typically no more than one month's rent, including the commission amount obtained from the landlord) for those customers who need a higher level of service to compensate the agents for their extra time and auto fuel. These are typically customers not familiar with Brevard County who require the help of agents over the course of multiple days to tour them and help them find the rental of their choice. There is also no standard rental procedure or requirements in our county. Each brokerage or property management company has their own rules & requirements for their rental listings.
Also, due to our growing population, we are seeing retail & restaurant expansions into Brevard County (WaWa gas stations, BJ Brewhouse, Red Robin, H&M, Sephora, etc). Local infrastructure is undergoing modifications (road projects, etc) to support the increased population as well. Traffic has been increasing as well, outside of our typical “snowbird” season, where residents from up north come down during the winter season (Thanksgiving to Easter, depending on the snowfall) and increase our resident volume.
Is There a Charge for Rental Assistance: Yes NoOutsourcedIs Home/Condo Rental Information Available in Your MLS: YesNo
Single Family Housing Availability: (3+Bedrooms)Shortage Oversupply Balanced Average Rent $1,275/Month
Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $1,208/Month__ ___
Apartment Availability: (2+Bedrooms)Shortage Oversupply Balanced Average Rent Not Available on MLS