Yes, the huge real estate bubble burst in a big way quite a few years ago starting in late 2006 and Palm Bay real estate is still taking a big hit. As a perfect example, we purchased a Palm Bay home in Riveria Key in late 2005 for $242,000 and it sold in October 2007 for $180,000 and now almost 3 years after that, those same homes in the Rivera Key development have an asking price of $109,000.
Over a course of 5 years, that’s a 55% reduction in the price of new homes. While that is only a single example of one neighborhood, it serves as evidence of where we are in the real estate market in Palm Bay Florida and the nation as a whole. Back in the days when people were anticipating new developments to open to buyers, on two separate occasions my wife and I were each paid $300 to wait in line overnight for other property buyers to be put on a list.
Those were also the days when nearly anything that had a roof on it, would sell for above $200,000 in Palm Bay and if a home came on the market that was under that limit it would sell in a matter of days or even hours. In fact as another example, our first home in Florida that we flipped was on the market for only 22 hours when our first offer came in and we accepted. Contrast that to the home previously mentioned in Rivera Key that was on the market for 1 year.
And just this last month a home in our neighborhood of Oakview Estates that was listed for $199,000 (a completely ridiculous price), dropped the price to $149,000, a 25% reduction in asking price almost overnight. I assume the real estate agent for this particular home might have looked at the MLS listings for Brevard County and noticed just down the street there is a home with about 100 less square feet listed for only $65,000. Somebody didn’t do their research on this one.
Whatever the case, it appears that real estate in Palm Bay FL is still taking a beating and may not recover for a long time. Are we finally looking at the bottom end of a real estate market that has been on the decline for nearly 4 years now, or is there still some room to go?
I don’t think we are yet at the bottom simply because when you see a nice house in a neighborhood like ours that is only selling for $65,000 and has been on the market for about 3 months without a buyer that spells trouble. What do you think?