August 2024 Housing Market Report: Palm Bay and Brevard County Insights

A Comprehensive Analysis of Price Movements and Market Dynamics

Palm Bay, FL — The Palm Bay housing market in 2024 presents a dynamic landscape with unique opportunities and challenges. As the largest city in Brevard County, Palm Bay's real estate trends offer insightful comparisons when examined alongside neighboring cities such as Melbourne, Titusville, and Cocoa. This article explores current market conditions, compares key metrics across these cities, and provides recommendations for various stakeholders.

Predicting the Palm Bay Housing Market

Current Market Conditions

Median Home Prices

Median Home Price Trends in Palm Bay and Brevard County (2020-2025, Conservative Projections)

The median home price in Palm Bay stands at approximately $330,079, reflecting a slight decrease of 1.4% compared to the previous year. This adjustment indicates a modest cooling in the market after several years of steady growth.

Comparative Analysis:

• Melbourne: The median home price is around $365,000, showing a stable trend with a minimal increase of 0.5% year-over-year. Melbourne's higher prices reflect its established infrastructure and proximity to major employers and recreational areas.

• Titusville: With a median home price of $310,500, Titusville has experienced an increase of 2%, driven by its growing aerospace industry and revitalization efforts in the downtown area.

• Cocoa: The median home price here is approximately $295,750, marking a 1% decrease from the previous year. Cocoa's affordability continues to attract first-time homebuyers and investors seeking rental properties.

Bar Chart: Comparing median home prices across Palm Bay, Melbourne, Titusville, and Cocoa to illustrate relative affordability and market positions.

Market Inventory and Days on Market

Palm Bay currently has 2,193 homes for sale, indicating a slight increase in inventory from June to July 2024. The average days on market (DOM) has risen to 57 days, up 30.2% from the previous year, suggesting a shift towards a buyer's market.

Comparative Analysis:

• Melbourne: Inventory levels are at 1,850 homes, with an average DOM of 45 days, reflecting a more balanced market with steady demand and supply.

• Titusville: With 1,200 homes available, the DOM averages 50 days, indicating consistent interest, particularly due to its burgeoning tech and aerospace sectors.

• Cocoa: The city has 900 homes on the market, and properties typically remain listed for 60 days, showcasing a slightly slower market pace, but one that offers ample opportunities for buyers.

Line Graph: Displaying trends in inventory levels over the past year across the four cities to highlight market dynamics.

Line Graph: Displaying trends in inventory DOM over the past year across the four cities to highlight market dynamics.

Housing Market Trends by Property Type

Palm Bay shows varied trends when dissecting the market by property type:

• Single-Family Homes: Slight price decrease of 1%, with steady demand but increased negotiation leverage for buyers.

• Condominiums: Prices have increased by 3%, driven by retirees and young professionals seeking low-maintenance living options.

• Townhouses: Stable pricing with a marginal 0.5% increase, indicating balanced supply and demand.

Comparative Analysis:

• Melbourne: Notable growth in condominium prices, up 4%, attributed to developments near the waterfront and downtown areas.

• Titusville: Single-family homes have surged by 2.5%, fueled by employment growth and infrastructure improvements.

• Cocoa: Townhouses have become more popular, with prices increasing by 1.5%, appealing to budget-conscious buyers and investors.

Bar Chart: Illustrating price changes across different property types in each city for a clear comparative view.

Affordability and Economic Factors

Area Median Income (AMI)

The Area Median Income (AMI) for Brevard County is approximately $49,316. Assessing housing affordability against this benchmark provides insight into the economic accessibility of each market.

Palm Bay:

• Mortgage Affordability: Monthly mortgage payments for median-priced homes often exceed the recommended 30% of income guideline, highlighting affordability challenges.

• Rental Market: Offers a diverse range of options, but rental rates have increased by 2%, tightening affordability for lower-income households.

Melbourne:

• Higher median home prices lead to greater affordability pressures, though the city offers more high-paying job opportunities, slightly offsetting the cost burden.

• The rental market is competitive, with rates increasing by 3%, particularly in desirable neighborhoods.

Titusville:

• Improved affordability due to rising incomes from the aerospace sector; however, housing supply struggles to keep pace with demand, leading to increased prices.

• Rentals remain relatively affordable, but limited availability is a growing concern.

Cocoa:

• Maintains the most affordable housing options in both ownership and rentals, making it attractive for low to moderate-income families, despite modest price increases.

Bar graph: Housing Affordability Index by City (2024)

Recommendations for Stakeholders

For Buyers

• Palm Bay: Buyers can leverage the current buyer's market conditions, with increased inventory and longer DOM providing room for negotiation. First-time buyers may find attractive opportunities, especially in single-family homes.

• Melbourne: Buyers should act swiftly due to stable prices and moderate competition, focusing on condominiums for better investment value.

• Titusville: Prospective buyers should be prepared for competitive bidding, particularly for single-family homes near employment hubs.

• Cocoa: An excellent market for budget-conscious buyers, but due diligence is essential to identify quality properties amid slower market movement.

For Investors

• Palm Bay: Investment in condominiums appears promising due to rising prices and demand from specific demographics. Rental properties can yield stable returns given the steady rental market.

• Melbourne: High demand for upscale rentals and proximity to amenities make it suitable for long-term investments, particularly in downtown developments.

• Titusville: Rapid economic growth offers lucrative opportunities, especially in single-family homes catering to professionals in the tech and aerospace industries.

• Cocoa: Affordable entry points for investment with potential for appreciation as the city develops and attracts more residents.

For Policymakers

• Palm Bay: Initiatives to increase affordable housing stock and support infrastructure development can enhance market stability and accessibility.

• County-wide: Collaborative efforts to address housing shortages, particularly in high-demand areas, and programs to support first-time homebuyers will benefit the broader community.

Conclusion

The 2024 housing market in Palm Bay and across Brevard County exhibits a complex interplay of trends, with each city offering distinct opportunities and challenges. Palm Bay stands out with its buyer-friendly conditions and diverse property options, while neighboring cities present varying market dynamics influenced by economic and demographic factors. Stakeholders should consider these nuanced insights when making informed decisions in the current real estate landscape.

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