The True Nature of the Current Daytona Beach Real Estate Market

What is Market Price for Daytona Beach Homes and Condos?

The market price for Daytona Beach real estate is being driven by short sale and foreclosure transactions. If you are selling any property, whether or not you’re in financial distress or not, the price is being determined by these transactions.

The logic is quite simple - Why would a buyer want to pay the so-called market price, when they can buy 20-40% below market?

All the deals that I’ve done recently have been short sales or bank owned foreclosures. The prices were below market. Based on that and the experience of other agents in my office, we need to understand the true nature of the current market.

The True Nature of the Current Daytona Beach Real Estate Market

Condos in Daytona Beach and homes in Daytona Beach are selling below market value. Now, if all homes and condos are selling below market, what’s the real market value? It’s is, and always has been, what homes are selling for today.

There are two markets and that’s why 6,000 plus homes and condos are listed in the Daytona Beach MLS and there are many others that are being sold without listing in the MLS. It comes down to distressed properties and non-distressed properties. If you are attempting to sell a non-distressed property, you will need to be creative by offering incentives. The incentives may be something like  lease purchase or owner financing where you are tapping a market that cannot qualify for a mortgage in the current environment. You really need to offer a reason other than price because you can’t compete on price without losing significant equity.

Buyers are looking for bargains and if you home is priced at market, that’s not a bargain. We don’t see this situation changing anytime soon. Many ARMs and balloons are yet to come due - all the way out to 2011. It’s really a double whammy for a lot of people - they must accept the big adjustment because they can’t refinance the ARM, or worse, they can’t refinance when the balloon comes due because they can’t get mortgage money.

We see more distressed properties entering the market for the next few years. Worse, we fear that many of the people who are in negative equity situations, who need to sell, with walk away from their homes, making matters worse.

The situation is better for buyers, but many people are fearful of prices dropping further and waiting. This may be a prudent strategy, but if they are not involved in the market, they will miss the bottom. I suggest that anyone interested in buying or selling in this market, read our Daytona Beach Market Reports. We publish weekly and monthly reports with sales figures, interests and other important relevant information. You can always call me at 386-566-7503. We cover Ormond Beach, Port Orange, Palm Coast, Ponce Inlet, Holly Hill and surrounding areas.

Daytona Beach Florida Homes and Condos Monthly Inventory Analysis

Inventory Report for Daytona Beach Homes and Condos

We are establishing this new monthly report to analyze the details of Daytona homes and condos inventory on the market in the Daytona Beach MLS. The inventory numbers are shown in total by price range and the broken down by houses and condos.

Total August Daytona Beach Real Estate Sales

Price Range	Number Sold	Percentage of Total
Less than $100,000	53	19.1%
$100,000 - $199,999	127	45.8%
$200,000 - $299,999	46	16.6%
$300,000 - $399,999	25	9.0%
$400,000 - $999,999	24	8.7
Overs $1,000,000	2	<1.0%

Total Daytona Beach House and Condo Inventory

Price Range	Inventory	August Sales	Inventory in Months
Less than $100,000	487	53	9.4
$100,000 - $199,999	2059	127	16.2
$200,000 - $299,999	1337	46	29.1
$300,000 - $399,999	691	25	27.4
$400,000 - $999,999	1221	24	46.7
Overs $1,000,000	226	2	113

As of today, September 9, there are 5986 houses and condos listed in the Daytona Beach MLS. Based on 277 sales in August, the current inventory is 21.6 months. This is obviously a buyers market overall. However, look at homes priced under $200,000 and we see the average for those price ranges are below overall average. Above $200,000 and the months of inventory jump significantly. Under $200,000 is much stronger than above that number.

Daytona Beach House Inventory

Price Range	Inventory	August Sales	Inventory in Months
Less than $100,000	267	39	6.8
$100,000 - $199,999	1540	110	14
$200,000 - $299,999	995	31	32.1
$300,000 - $399,999	472	20	23.6
$400,000 - $999,999	588	12	49
Overs $1,000,000	191	2	95.5

There are 4053 houses on the market. 214 houses were sold in August for an average of 18.9 months of inventory. The houses number is lower than the overall combined house and condo average meaning that there is less inventory in months for houses than condos. Again, the under $200,000 market is the lowest price range in terms of average inventory in months.

Daytona Beach Condo Inventory

Price Range	Inventory	August Sales	Inventory in Months
Less than $100,000	230	14	16.5
$100,000 - $199,999	519	17	30.5
$200,000 - $299,999	342	15	22.8
$300,000 - $399,999	219	5	43.8
$400,000 - $999,999	588	12	49
Overs $1,000,000	35	0	Infinite

There are 1933 Daytona Beach condos on the market. 63 condos were sold in August for an average of 30.7 months of inventory. Condos are not selling at the same rate as houses with approximately 1 condo sold for every 4+ houses. At an overall average 30.7 months of inventory, condos are over 62% higher than houses in average inventory in months. Condos listed at $300,000 are not selling well with only 27% of sales, but 44% of inventory.

Summary

Daytona Beach real estate Inventory has been high and remains so. We have barely moved in inventory for months, remaining at about 6,000 properties on the market. There were about 7,000 properties on the market at the beginning of the year, so we’ve dropped about 14% since January 1. But, again, we haven’t seen any drop in months.

We are in a buyer’s market at all price ranges, but less so in the lower price ranges. This is what we have been seeing for the entire year, with sales under $200,000 ranging from 55% to almost 65%, of all sales.

Port Orange Real Estate – Is It Right For You?

Port Orange Real Estate a Florida Gem

Port Orange Florida is located just south of Daytona Beach on the central Florida coast. It’s not as well known as Daytona Beach, but offers a better alternative for many people.

Daytona Beach real estate includes many older homes and older neighborhoods. You won’t really find that in Port Orange. About 80% of Port Orange Homes were built in the last 30 years.

Port Orange is a planned city. You can see that when you drive on the main roads. Businesses are set back from the road and there are strict rules about signs. It’s very attractive and refreshing to see. There are also many activities sponsored by the city and City Center includes a large recreation facility. The facilities are excellent. My son played baseball and soccer there when we lived in Daytona Beach Shores in the mid 90s.

There are many communities in Port Orange including Cypress Head, Water’s Edge, Spruce Creek Fly-In. Cypress Head and Spruce Creek Fly-In include golf courses within the communities. Cypress Head is public and owned by the city, and Spruce Creek is private. There’s also an executive golf course at Crane Lakes which is a manufactured home adult community.

I like Port Orange. There’s great shopping, schools, and restaurants. I have a Port Orange Real Estate section on the site. You can search all Port Orange homes and condos for sale without needing to register.

If you need more information or would like me to search properties for me, please call me at 386-566-7503.

Who is Giving the Best Deals on Daytona Beach Homes and Condos?

Where Are The Best Daytona Beach Condos and Homes Deals?

Do you know where to get the best deals on homes and condos in Daytona Beach, Ormond Beach, Port Orange? I do. Do you know which builders and developers are really dealing? I do. Do you know how to present a short sale offer that will have a good chance of getting accepted? Do you know how to find short sales? Again, I do.

Why in the world would you know these things? It’s not what you do everyday, seven days a week. And really - you don’t need to know these things. You need to know someone who does.

There are really good deals being offered by developers and builders, the best deals I’ve ever seen. The developers need to move their existing inventory which has grown from cancellations. People walked away from the higher contracted prices, even forfeiting their deposits, as prices dropped. This leaves the developer in a lurch.

The situation can be used to your advantage, and I can help. How? When making an offer to a developer, seller or bank, the more high quality factual information you have, the more enticing we can make the offer.

My job is to help you find the Daytona Beach house or condo to fulfill your dreams and desires. Whether it’s a new home, a new condo, or a great deal on an existing home, I can help you.

Real estate is very complex right now, and there is just too much information for most buyers to gather and understand. There’s also alot of myths and plain BS. I can cut through the BS with you and get you the deal of lifetime. Call me at 386-566-7503 to begin the conversation. You can also contact me through our real estate informaton contact form.

Ormond Beach Real Estate Video - Ormond Lakes Community

Ormond Lakes Community Video

Ormond Beach real estate offers many options and beautiful communities. I am partial to Ormond Lakes. I started my real estate career there. This is a special place if you love nature, lakes, bike and walking trails and a friendly community. The community features tennis, a beautiful club house for events and a wonderful pool with a large deck.

Most the homes in the community are custom built homes, and there are many homes to choose from the 200’s up into the millions of dollars in the estate section. Most of these homes are newer. There are many lakes in the community, so many homes open to water in the backyard. Lots are still available for customer built homes.

It would be my pleasure to show you homes available in Ormond Lakes. Give me a call when you’re ready.

Ormond Beach Homes - Oceanshore Blvd - Video Listing

Daytona Beach Real Estate Video Listings are Here

We have created our first video listing. The home is located at 562 Oceanshore Blvd. in Ormond Beach. This home is what the Florida lifestyle is all about. It’s right across from the beach and has a marvelous pool and deck area in the back.

Check out the Video here or go to Ormond Beach Home - 562 Oceanshore.

It took awhile to get all the technical requirements, video hosting and production requirements nailed, but we were able to do it in a few weeks. It helps when I have a film maker and an IT Director available. I could not have done it without them. Thanks Michael and David.

We would appreciate comments about this video. Many more are coming now that we have the production and technical requirements complete.

Daytona Beach Home Sales - Detailed Inventory Analysis July 2008

Daytona Beach Real Estate Detailed Inventory Report

One of the primary indicators for a real estate market is the number of homes on the market compared to the number of homes sold. This is the home market inventory number and it is usually expressed in months.

The three tables below show units on the market by houses, condos and total. We can see that home market inventory numbers vary widely by price range and by type of property. For the total market, the Daytona Beach real estate market home inventory is at 22.5 months based on current inventory numbers and June 2008 sales results. Inventory of houses is at 19.5 months and inventory of condos is at 36.4 months.

Daytona Beach Area Homes

Price Range	Houses on Market	Houses Sold June	Inventory (Months)
Under $100,000	260	25	10.4
$100,000 - $199,000	1479	102	14.5
$200,000 - $299,000	1006	48	21.0
$300,000 - $399,000	509	22	23.1
$400,000 - $499,000	221	7	31.6
$500,000 - $999,000	411	4	102.8
Over $1,000,000	199	2	99.5
Totals	4085	210	19.5

Houses continue to sell best in the under $200,000 market where 60% of all homes sold in June. These numbers have been consistent in recent months. With 23% of sales in the $200,000 - $300,000 price range, a whopping 83% of houses sold in the Daytona Beach area were sold at under $300,000. 93% of the 210 homes sold in June were under $400,000. That doesn’t leave much for the over $400,000 price range where only 13 houses sold in June. This number has been pretty consistent as well.

Daytona Beach Area Condos

Price Range	Condos on Market	Condos Sold June	Inventory (Months)
Under $100,000	99	4	24.8
$100,000 - $199,000	402	9	44.7
$200,000 - $299,000	311	9	34.6
$300,000 - $399,000	219	8	27.4
$400,000 - $499,000	186	4	46.5
$500,000 - $999,000	385	10	38.5
Over $1,000,000	35	1	35
Totals	1638	45	36.4

Condos sales have traditionally been about 20% of the total sales. In June, condo sales were 18% of all sales, up from 13% in May. There is more condo inventory on the market in months than for houses, but in the upper price points, inventory in months is lower. Regardless, there are 36 times condos for sale than monthly buyers.

Daytona Beach Area Condos and Homes Combined

Price Range	Combined on Market	Combined Sold June	Inventory (Months)
Under $100,000	359	29	12.4
$100,000 - $199,000	1881	111	17.0
$200,000 - $299,000	1317	57	23.1
$300,000 - $399,000	728	30	24.3
$400,000 - $499,000	407	11	37.0
$500,000 - $999,000	796	14	56.9
Over $1,000,000	234	3	78
Totals	5725	255	22.5

Looking at the total of houses and condos for sale in monthly inventory numbers, we see that we are at a combined 22.5 months. This is still a market that is severely out of balance. A balance market is considered about 14 months. The Daytona Beach market is at or near that number in the under $200,000 house market, but not close in other markets. The good news is that after January, total inventory numbers were at 43 months.

The market will continue to be out of balance for some time, especially above the $200,000 price point. We have a lot of speculator purchased homes to cleanse through the market and this is going to take a long time. Our best estimate is at least two years, but probably closer to three years. Price declines will be greater in the higher priced market than in the more competitive lower priced markets.