I’m hearing and reading that people are looking for foreclosures and short sales to get a great deal. I say, let’s back up a bit and talk about what most buyers really want – they want the best price they can get. If you’re buying Daytona Beach homes and looking for the best value, does it really matter if it’s a foreclosure or short property? No, all that matters is the you get your best deal.

It’s All About Discount to Market Value

Bank and mortgage lenders dealing in short sales or REO or foreclosed properties are getting better at knowing market value. They are a lot better than they were two years ago. That being said, it is possible to get great deal from distressed properties. However, if you remember nothing else, remember this – not all foreclosed and short sale properties are great values.

A Better Home Buying Strategy

Want the best possible deal? Here’s one strategy. Find the most narrow area and focus your efforts. The best value is the highest discount to market. That means that you need to understand the market. The market for Ormond Beach homes, Port Orange homes and Daytona Beach homes are different. Further, within those cities, neighborhoods and communities are different. If you want the best deal, pick an area with a good number of homes for sale and then learn what’s sold and what’s for sale. Then and only then will you know if you are buying below market.

It takes a lot of work and it takes a real estate agent who is willing to work hard for you. Yes, that’s my specialty. I work closely with my clients to find the best deal for them. And – we do it. We’ve found tremendous bargains with a combination of patience and hard work. If anybody tells you it’s easy, you just might want to run.

Now, to get an idea of the foreclosure and short sale homes in the area, click on the following pages:

Daytona Beach Foreclosures
Daytona Beach Short Sales
Ormond Beach Foreclosures
Port Orange Foreclosures
Port Orange Short Sales

There are some amazing homes for sale in Daytona Beach. I marvel at some of the old Victorian style homes in the city as well as well as Ormond Beach. I love things Victorian and have a Victorian clothing collection.

A marvelous piece of local history just changed hands when two cousins purchased the Blodgett House on South Ridgewood Ave. in Daytona Beach. According to an article in the Daytona Beach News Journal, Sale, renovation plans for old Victorian home thrill Daytona historians, Nicholas Montagna of South Daytona and his cousin, Russell LaRiviere Jr. bought the home to renovate it.

I toured the Blodgett House a few years ago after the hurricanes that caused so much damage to the structure. Act Corporation was using the facility for offices when the 2004 hurricane damage forced them to move out. I was in tears by the end of the tour because it was such a shame that this old Victorian was sitting vacant and hurting. The home was built in 1896 as the home of Delos A. Blodgett. It passed through many other owners over the century plus of its existence. You can read the entire ownership train in the New Journal article.

I’m really excited that the cousins will be restoring the home to it’s original style. They’ll need to convert the structure back into a residence after it was converted to office space. I wish Mr. Montagna and Mr. LaRiviere Jr. the best of luck and hope to see her when they’re finished.

Sales of Daytona Beach Florida Real Estate continued their rise in May (2011). Sales of Daytona Beach properties in May improved 6.1% over last month and 11.0% over May of last year.

Daytona Beach MLS reported sales were 473 homes and condos sold vs. 446 in April and 426 over May of last year. Sales continue to grow at the prices ranges under $300,000. Looking at the chart below, we can see that 94.1% of sales were under that $300,000 number with 78.2% under $200,000. Sales in the higher price ranges were few in comparison.

Year over year, for the first five months of this year, sales were 1,941 vs. 1,835 in 2010 and 1349 in 2009. So year to date, we are up 5.8% over 2010 and a whopping 43.8% over 2009.

4,366 Residential and multi-family homes and condos were listed as of today. That’s down very slightly from 4,457 last month. However, because of the increased sales, total months of inventory for listed properties is down to 9.23 months. That’s down from months at the end of April. This is the first time months of inventory has dropped below 10 months since 2006.

268 of May’s sales were cash transactions. This means that a lot of Daytona Beach homes are being purchased with cash. Conventional financing accounted for 116 of the sales. That’s an improvement in raw numbers, so maybe the banks are beginning to loan a little more than they have been.

Analysis for the Daytona Beach Area Homes Sales

National numbers have reported dropping pricing and sales numbers dropping. That’s not the case in our area. Sales are up and prices are stable. Out median sales point for last month was the same as this month – $115,000. That number is driven by most of the sales coming at under $200,000. Average prices were down, but we believe that’s because of the trend that we’ve seen over the past few years – homes in the lower price ranges are selling. Homes above $300,000 are struggling.

The national economic numbers are not attractive and talks of a double dip to the recession are heard. Somehow, that hasn’t seemed to affect us. We believe we have that resource that never goes out of style – sun and sea. We believe we are at the top of seaside communities in the country for value. Many of my customers are buying second homes or buying their retirement homes now for a few years down the road. These buyers believe prices are near the bottom and are acting.

We can say about Daytona Beach home prices that they have not started moving up, but we can also say that the banks and other lenders are countering with closer to market prices than a few months ago. It’s seems that they now have a good sense of market value and “steals” are harder to find. However, the negotiation game hasn’t changed much. If you’re willing to be patient and submit offers on multiple properties, you can still get a fantastic deal.

To find out what’s available in the local area, go to the following pages:

Daytona Beach Homes for Sale
Daytona Beach Condos for Sale
Ormond Beach Homes for Sale

Daytona Beach Real Estate Sales Up 6.2%

Sales of Daytona Beach condos and homes were up in April by 6.2% over April of last year. For the year, sales are up 4.2% over 2010 and 38.1% over 2009. Here’s a look at the first four months of the last three years.

As you can see, sales for 2011 are pretty close to 2010. The big increase came from 2009 to 2010. The best we can say about this year is that the sales volume is holding pretty consistently since that big increase.

April 2011 Daytona Beach Real Estate Sales

April 2011 sales of Daytona Beach area homes and condos are showing the same trends that we’ve been seeing for over 3 years now. Look at the chart below:

The percentage of all sales under $200,000 came in at 78.7%. This is consistent with the sales distribution since prices began falling in 2006. Add sales between $200,000 and  $300,000 to count and over 90% (90.4%) of all sales of homes and condos were under $300,000. The median price, which is the mid-point distribution of sale (1/2 above and 1/2 below), was $115,000, but the average sales price was $158,000. Both the median and the average sales prices have been holding close to this range for about a year.

Have Daytona Beach Real Estate Prices Bottomed?

This is a big question and the answer will be more opinion that fact at this point. Saying that prices have bottomed is risky because we will still see monthly variations in the numbers. However, the numbers appear to be saying that we are in a more stable period than we were last year at this time. If we look back to 2009, we are in a much more stable market than then.

There are 4457 residential and multi-famlity properties listed as of this morning. This puts us at 10 months of inventory. In September 2008, there were 21.6 months of inventory. There were 5986 properties on the market then, but only 277 homes and condos were sold. Now, we have a drop of more than 25% in listings and a 61% sales increase.

So, the slighted convoluted answer to price bottoming is – inventory is down significantly, sales are up over the past few years and median sales and average prices are pretty stable. If we haven’t reached bottom we are close barring a major economic calamity.

Please contact Lynn at 386-566-7503 to discuss the market and what you are looking for. Click this link to –>search all Daytona Beach area homes and condos for sale.

Daytona Real Estate Sales Up in May 2010

A 1.6% increase may not seem like much. That’s what we saw in May over April sales. That’s not the news. The news is that we are up 23.5% year over year when we compare May of this year against last year. Local Daytona Beach home sales gains over 2009 are holding.

For the first five month of 2010 sales are up 30.4% over 2009. We’ve sold 428 more homes and condos than during the same period last year. That’s the important trend. Even if sales were to stay steady, or even decline slightly, on a month to month basis, the market has regained a lot of its strength lost during 2007 and 2008.

The composition of sales however has changed radically. Most home sales are still occurring in the under $200,000 price range. Take a look at the chart below and you will see how sales under $200,000 dominate the market.

80.5% of sales in May were under $200,000. Add the 11% of sales between $200,000 and $300,000 and the total rises to 91.5%. Only 36 of the 426 homes and condos sold were sold for over $300,000. This is a trend that we have seen for over two years and is still increasing slightly. In April, 90.4% of sales were under $300,000.

What Do May Numbers Mean?

First, with sales under $200,000 dominating the market at 90.5% of all sales, homes and condos in this price range are going to sell faster for sellers. For buyers, homes in the this price range that are priced right, will have more competition with other buyers. It’s not unusual for an aggressively priced bank-owned foreclosure property under $200,000 to have multiple offers and a bit of a bidding war.

Second, more expensive homes and condos have significantly lower sales and less competition. Homes and condos over $300,000 must jump out as a significant value. The listing price must be backed up by value. An attractive, properly priced listing in any price range must have its value showcased and made clear to prospective buyers.

Three Factors to Watch

We see three factors to watch closely this year to time your home purchase:

• Home Prices
• Mortgage Rates
• Inflation

It’s rising prices you need to be watching. No, we are not seeing rising prices yet, but it will happen. Some markets are recovering in price, but not sales. We have recovered in sales, but not price. When prices of Ormond Beach homes for sale and other area homes start to rise, we expect a mini-boom if people panic about getting what they see as a once in a lifetime bargain.

Mortgage rates and inflation are tied together. Watch both because if you are financing, it can cost you a lot. A big jump in inflation rates will boost mortgage rates. Here’s what happens:

Monthly Payment for a $200,000 mortgage at 5.14% = $1,090.82

Monthly Payment for a $200,000 mortgage at 5.44% = $1,128.06

Monthly Payment for a $200,000 mortgage at 6.00% = $1,199.10

Monthly Payment for a $200,000 mortgage at 6.5% = $1,264.14

Rates going from 5.14% to 6.5% is not unrealistic. Remember 1980s Interest Rates.

Is Now the Right Time to Buy?

We think it’s a good time to buy, but don’t take our word. Look at the 426 people who bought homes and condos in May. 1835 votes were cast by buyers so far this year, 30.4% more than last year and 57.1% more than in 2008. The people who vote with their money are the people we watch.

We are concerned about inflation. We believe there will be higher inflation to pay for record government spending and borrowing. It’s a matter of when, not if. If you are financing and qualify now, consider the value of having a 5% mortgage rate if rates go to 7, 8 or 9%.

Please give me a call at 386-566-7503 to discuss the market and your options.

Sales of Daytona Beach Homes and Condos Up 35%

Daytona Beach homes and condos continued their sales increase in April moving 35% higher than last April and increasing 6.9% over last month. April’s 420 properties sold is the highest level since the market dropped in 2006. For the year, sales are up 32.7% over the first four months of 2009.

Looking at the chart below, the sales trend we’ve seen over the past few year continues with 78.6% of all sales in the under $200,000 price range. Sales under $300,000 encompassed 91.7% of all sales in April.

Sales in March were 393 homes and condos. Last April’s sales were recorded at 311 properties. To add a little perspective, sales in April 2007 were 270 properties and April 2008 recorded 277 sales.

What’s Next

There’s no doubt that sales have increased over the past 16 months. There was concern that when the Federal Reserve stopped buying Mortgage Backed Securities at the end of March that sales would be impacted. That didn’t happen. Mortgage rates are up only a bit from where they were before the Feds action. So, we didn’t see a major impact.

Next, the First Time Home Buyers Tax Credit expired for new contracts on April 30th. Service members and some other overseas government workers have another year to take advantage of the credit. We believe the impact of the expiration will be minimal on sales. In the Daytona, Ormond Beach, Port Orange area, we see people taking advantage of the tremendous values available. We believe more people will take advantage over the coming months.

That being said, we will look to May to give us another indicator. May sales were higher than April sales over the past three years. If that happens again this year, or sales levels are close, we can say that the expiration of the tax credit had little to no effect.

Note: Sales reported in this post are from the Daytona Beach MLS which covers Daytona Beach, Ormond Beach, Port Orange, Ponce Inlet and surrounding communities. You can search the local MLS by going to our Daytona Beach Real Estate Search Page.

Daytona Beach Sales Up Big in March 2010

Sales of homes and condos in Daytona Beach continue their steep climb over both March last year and last month. 393 homes and condos were sold last month against 282 sold last March – an increase of 34.9%. Sales were up 23.6% over last month when 318 homes were sold. The number reported are from the Daytona Beach MLS.

Take a look at the chart and we can see that sales by price range remains consistent with the past two years.

Sales under $200,000 were 75.1% in March, down from 80.5% in February, but consistent with the ranges we have seen recently. This is where the market is strongest. Many of the foreclosed and short sale homes are in this price range and this is where buyers are most active. Sales in the $200,000 to $300,000 price range were stronger this month at 13.2%, up over last month when we saw 11.6%.

We are looking for an increase in the higher price range to show a market shift. That just has not been there in the past two years. When homes sold at over $300,000 begin to increase in numbers and as a percentage of sales that will indicate stabilization in those price ranges. Until then, inventory will remain high.

We have four listings over $499,000 and we’ve sold properties in the higher price ranges, but most of our sales and total market sales are in the lower price ranges.

If you have questions about the market, please give me a call at 386-566-7503. We can talk about specific properties or discuss the market in general.

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Positive Sales Trend Continues for Daytona Beach Real Estate

February 2010 Daytona Beach real estate sales continued a positive trend with a 27.7% increase over February a year ago, and a 14.4% increase over January sales. The numbers reported from the Daytona Beach MLS show the continued improvement we’ve seen over the past 14 months.

Looking at the chart below, we can see that sales under $200,000 continue to dominate the market.

Daytona Beach Real Estate Sales February 2010

This is the highest percentage sales that we’ve seen in that price range since we’ve started tracking over three years ago. When sales under $300,000 are considered, 92.1% of all sales come from the lower end of the market. A total of only 28 homes and condos were sold over $300,000.

The reason for sales dominance in the lower price ranges is that many people are finding what they are looking for. Distressed properties in the form of short sales and foreclosures are keeping prices down. There is also the factor that many of these properties need work. I have seen kitchen cabinets, plumbing fixtures and even wood flooring removed from distressed properties. That further lowers the value and the price of these properties.

Median sales of Daytona Beach homes and condos came in at $110,000 in February. The median is the middle point of the distribution of sales – one-half above and one-half below. This low value is no surprise when 44% of sales came in at under $100,000, and 79.5% were under $200,000. As long as this high a percentage of sales is in the lower price ranges, median values will stay low.

Quick Review of January 2010 Daytona Beach Real Estate Sales

The final numbers are in, and in January, Daytona Beach home sales were up against last January and down against last month. This is a mixed bag of up and down, but in-line with historical data. January and the first quarter have been the weakest month and quarter over the past two years. The summer and fall are the strongest months over the same period.

December was the highest sales months in over three years, so we need to keep that in mind when we compare January against those numbers. We’ve put together two charts to show the differences.

January 2010 vs. January 2009 Daytona Beach Home Sales

Daytona Beach Home Sales January 2010 vs. January 2009

Year over year, we saw a big 37.7% overall sales increase last month. The chart is broken down by the categories from the Daytona MLS. Single family houses dominate total sales with a total of 75% of all sales. Daytona Beach condo sales are the next strongest category with 22.2% of all sales. This is a good sign that January is stronger than last year, but when compared against last month the news doesn’t appear as good.

January 2010 vs. December 2009 Daytona Beach Home Sales

January 2010 vs. December 2009 Daytona Beach Home Sales

December was a big big month. With 417 properties sold, it was the highest sales month since the bubble burst. January show a 30% drop from December. We are not taking this lightly. Although we can look at historic numbers for an explanation, we’ve learned in this market not to attempt to predict anything too boldly. January has been the lowest sales month for the past two years, but last year the drop was only 4.9%. However, in 2008, the drop was 28.7%.

So there is some historical support for a drop of this size, but we need to keep in mind the pressures against home sales from the economy and distressed properties.

Where Do We Go From Here?

I boldy stated last month that I thought that with last year’s sales of close to 4,000 units, we were about where we would be without the bubble burst. I believe we are within 10% of that number. The January sales are in line with that view. Last year, the average monthly sales were 333. With January, the weakest month of the year, coming in at 292 properties sold, we are in line with meeting a average of 333 properties. Of course, there are no guarantees and we will need to watch as the year progresses. Make sure to visit here for regular updates.

Sales of Daytona Beach Homes – Down Against Last Month – Up Over January Last Year

Daytona Beach homes and condos sold at a 33.2% slower pace than last month, but were up 29.9% over last January. What’s next? These numbers are preliminary, but will not change significantly over the next few days.  The fall in sales is not unexpected. Here’s why:

• January sales have been the lowest sales months for both 2008 and 2009
• The 1st quarter has been the lowest sales quarter historically in the area
• December sales of 416 properties through the Daytona Beach MLS were the highest in over three years

Our inquires and website traffic were down during the fourth quarter, even though our sales were strong. In January, our website traffic was up 61.1% over December, back to the numbers we see during the summer high selling season. We are showing a lot of properties and my listings are being shown.

Seeing this level of website traffic and inquiries shows a lot of interest in the Daytona Beach real estate market. Our web traffic is about 50% higher than it was for last January. We believe sales will improve in February and are looking for a strong first quarter. Beyond that, we need to see what happens with the economy and whether the home buyers tax credit is extended.

Here’s a quick breakdown of January sales by price range.

Daytona Beach Homes Sales by Price January 2010

The distribution of sales by price is consistent with what we have seen over the past two years. Homes and condos sold under $200,000 made up 75.5% of January sales and under $300,000 made up 88.1%. The under $200,000 market is consistently strong and over $300,000 sales have been weak. This will change, but not until there is more certainty of price stability.

We will publish a full breakdown of home and condos sales for January later this week; after all the numbers are in the system.