Unfortunately, Palm Bay real estate in some areas of the city is still getting hammered and it appears that the bottom of the real estate market in the South Brevard, Palm Bay Melbourne area has yet to find the bottom.
Since we made a feeble attempt at flipping houses back about 5 or 6 years ago it intrigues me to just peruse through the Brevard MLS and see what prices are doing. It certainly is interesting to see where things have gone from the heydays of 2002 to 2005 to now. Prices have dropped considerably and many homes are selling for less than half of what they were just 7 years ago. Below are a couple of examples:
We sold a 3 bedroom 2 bath, 1,704 square foot home in Riviera Key in October of 2007 for $180,000 in a short sale. We purchased that home in October of 2005 for $242,000 and that exact model of home in the Rivera Key subdivision in Palm Bay, is now listed for $95,500. That’s a huge total reduction of 61% off of the original price and a 12% reduction off of the price since my last report on Palm Bay real estate.
The second example is a Florida home we sold in April 2005 for $345,000 that now has an exact model listed in the Brevard MLS for $205,000 six years later, a 40% reduction in the price. Other examples are a couple of homes in our neighborhood, one that was listed for $199,000 a year ago, then dropped to $149,000 and is now priced at $74,900 and is still sitting. The other has been priced at $65,000 and is a nice house that the previous owners put some nice upgrades in and it has been sitting at that price for more than a year.
While Jean and I go out to eat quite a bit and see lots of people in local restaurants and around town and at times wonder where the recession is, it is right here in real estate. Something is not correlating between what’s happening to real estate prices, how long homes are on the market and how much money people seem to have that they can spend on discretionary items such as dinner out.
All this is happening in our local economy while the Brevard County unemployment rate has gone from 2.8% in April of 2006 to 11.4% in February this year (the most current stats as of this post). Unfortunately, this information doesn’t make our local economy look all that great and it may even spell for much harder times ahead.
If you have a job and or a good source of income right now, be thankful and count your blessings and maybe put a little or a lot back, as the case may be, for when things get tougher because we still don’t know where the bottom of the Palm Bay real estate market is. It is still really anyone’s guess.