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 / $ 203,030 / $ 175,403
**Sales Price (same time prior year)
Choose one: Average Median / $ 177,089 / $ 148,250
Average Days on Market – list to contract (current) / # 31 (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 / # 2.9 / # 3.7
Absorption – Months of Inventory (same time prior year) / # 3.9 / # 4.7
Active Listings / # 2,439 / # 801
Closed ( total last 3 months) / # 2,853 / # 759
Expired Listings ( total last 3 months if available) / # Not Available / # Not Available
Change in Home Values / % 14.6
Increase in past 3 months
Stable
Decreasing in past 3 months / % 18.3
Increase in past 3 months
Stable
Decreasing in past 3 months
Sold LP/SP Ratio (last 3 months) / % 94.5 / % 93.2
**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/Town home) 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.)
Since the Q1 MSA report, there have been several new and exciting announcements stemming from the Space Coast Economic Development Commission. In mid-June, Embraer Air announced they would be constructing a new building in Titusville (Project Eagle), which would bring 150 new jobs to the area with salaries averaging $48,000 annually. Also, in mid-June, Lockheed Martin announced that they will be expanding their workforce by 130 jobs over the next two years with an average annual wage of $85,000. The expansion is needed to support the US Navy's Trident II D5 Fleet Ballistic Missile program in Cape Canaveral. These two major announcements signify a positive change, especially in the northern areas of our MSA, which were the most devastated with the loss of the shuttle program. GrowFL has announced its 2015 Florida Companies to Watch finalists and six finalists from Brevard County made the list. Those companies were include, Certified General Contractors, Inc., K. Parks Consulting, Inc., Modus Operandi, and Sorensen Moving & Storage. Representing Titusville is RUSH Construction, Inc., and from Cocoa Beach, Novel Engineering, Inc.
The EDC has been key in recruiting and providing incentives for businesses to move to the area or to expand their current footprint. The EDC was selected to receive $75,000 to continue its activities highlighting the positive economic influence military installations have in Brevard County
We continue to see low housing inventory, which has been one of the major driving factors in the rise of home values. Builders have really taken off to fill the void in existing home inventory. There are several new phases of existing developments that continue to expand and begin development in the area. The new construction homes are not available on the MLS, so the local real estate agents are responsible for knowing the information about the upcoming inventory. The new construction homes average $200,000s-$400,000s, depending on the location. The most expensive new construction homes are located in the Viera area.
Rental inventory appears to pose a real challenge to tenants coming to the area. Regarding relocation transferees, many want to rent for a period of time before purchasing to become acclimated to the area first, but many are finding they have to purchase instead. Tenants with pets and short term tenants are the individuals with the highest level of difficulty in finding rental housing. Due to the rental shortage, we have seen a couple of new apartment complexes being constructed in the "hot" real estate markets. Landlords are being more selective with their tenants, due to the demand.
With all of the new commuters, we are seeing a huge expansion of large gas stations/convenience stores, in particular, WaWa and Cumberland Farms (both new brands to Brevard, but popular up North). In the last quarter, we've had 3 open and 3 begin construction.
The 2nd Quarter was our busiest with real estate activity, as many families want to find a home and get settled prior to the start of school. Registration is required in the summer, and particular school preferences are fueling pockets of highly in-demand towns.
Overall, the real estate market is strong, the economy is thriving, & the engineering workforce continues to expand.
Is There a Charge for Rental Assistance: Yes No Outsourced Is Home/Condo Rental Information Available in Your MLS: Yes No
Single Family Housing Availability: (3+Bedrooms) Shortage Oversupply Balanced Average Rent $1,397/Month
Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent $1,279/Month__ ___
Apartment Availability: (2+Bedrooms) Shortage Oversupply Balanced Average Rent Not Available on MLS