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

Energy costs for Daytona Beach homes are very high in the summer months when air conditioners run around the clock. US Building codes are being updated to significantly reduce energy costs. I found the story about the updates to the national building code in an article at Sustainable Business – Landmark US Building Codes Finalized. Here are the highlights from the article:

The changes represent the largest single-step efficiency increase in the history of the national energy code. It requires homes and buildings to achieve energy savings 30% higher than the 2006 code.

And the effects for residential homes:

• Better seal new homes to reduce heating and cooling loss
• Improve the efficiency of windows and skylights
• Increase insulation in ceilings, walls, and foundations
• Reduce wasted energy from leaky heating and cooling ducts
• Improve hot-water distribution systems to reduce wasted energy and water in piping
• Boost lighting efficiency

Local codes are based on the national code, but there are differences. What happens in Daytona Beach, Ormond Beach and Port Orange will depend upon state and local changes. The code changes are expected to save homeowners an average of $500 per year in energy costs. The article states that incremental building costs will be small, but I’m not so sure about that.

I see the costs affecting lower price homes more because these are the areas where builders focus on keeping costs as low as possible. These changes will be a bigger percentage costs than cost homes.

The changes will take some time to work through, but the affect for Daytona Beach, Ormond Beach and Port Orange homes for sale will be that existing homes will cost less per square foot, but new homes will be less costly to operate over the long term. If you’re planning to spend many years in a home, the savings will pay for the added initial cost.

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.

How Are People Paying for Daytona Beach Homes?

Sales of Daytona Beach homes have been strong this year. People are buying homes and condos, but how are they paying for their properties. There’s an interesting new feature in our local MLS (multiple listing service) that shows how people paid for the property purchase.

In June, 52.4% of buyers paid cash. This doesn’t surprise me at all. I’m seeing about 80% of my buyers paying cash. Here’s the breakdown of how properties were paid for:

• Cash – 255 (52.4%)
• Conventional Mortgage – 136 (27.9%)
• VA/FHA 72 (14.8%)
• Other 24 (4.9%)

I went back to take a look at how financing has changes since the boom days. In June 2005 the numbers were completely different. 74.4% of homes and condos were purchased through conventional mortgages and 22.9% were cash buyers. In rough terms, 3 out of 4 people were using conventional financing in 2005 and 1 out of 4 are doing so today. Also interesting is that 1.3% of buyers in June 2005 used FHA or VA loans versus 14.8% last month.

Conclusions

More than half of buyers of Daytona Beach condos and homes are paying cash, about 1 out of 4 are using conventional financing and 15% are using VA or FHA loans. This tells me that if you want to finance at the good rates and you’re eligible that VA/FHA money is available (see Get Your FHA Loan Now) and people are getting loans. Make sure to check this avenue for the best options. If you have good credit and are willing to go through the new more stringent processes, mortgage money is available.

Sales of Daytona Beach Homes and Condos Up Again

And so it continues. Sales of Daytona Beach homes and condos were up 46.2% over last June and 12.9% over May.  Total sales for the first half of 2010 are up 33.4% over the first half of 2009. The uptrend continues, but…

There is a lot of speculation that sales have been driven by the Homebuyers Tax Credit. The date to close has been extended (see: Congress Approves Homebuyer Tax Credit Closing Extension for more). We won’t argue with that, however…

Daytona Beach area real estate is different than most other places in the country. To put it simply, most of our sales are driven from out of town money and buyers of second, rental and vacation homes. Those buyers are not eligible for the tax credit, so the affect of the credit is not as significant in Daytona Beach. See our article The Current Daytona Beach Homes Market in 142 Words for more details.

We will know the effects of the expiration of the homebuyers tax credit in July numbers. July and August are traditionally strong sales months in area, so if sales drop in the next couple of months, we might be able to say that the tax credit expiration was one of the causes.

The major trend continues…

The chart shows that 74% of all sales of homes and condos were under $200,000 and 88.1% were under $300,000. However, this is the first time in a long time that sales of properties over $300,000 were over 10%. At 11.9% of sales, this may be a signal that homes in higher price ranges may be becoming more attractive to buyers. One month does not make a trend, but this will bear watching.

If sales over $300,000 start to improve, that will add more strength to our market.

We are still receiving a lot of inquiries from this website, so activity does not seem to be declining at all. Most of our sales are from short sales and foreclosures. If you need more information, or just want to discuss the market and your options, please call me at 386-566-7503.

International Instability Keeping Mortgage Rates Down? – Nah

Most people who buy Daytona Beach and Ormond Beach homes and condos care only that mortgage rates are low. With prices being low, it’s a pretty good situation right now for buyers. However, there are those who like to speculate rather than report useful facts and information.

It appears that whatever is happening in the world is often used as an explanation for favored opinions. I been seeing a few references in the past few days that domestic mortgage rates are being held down by instability in international financial markets. I don’t believe this at all.

I’m not an economist, but that doesn’t stop me from understanding some basic things about money and interest rates. Mortgage rates are low because the demand for loan money is down. If there were better places, safe places, for banks to loan money, they would – at higher rates. Long-term bond rates that are correlated with mortgage rates are low, so mortgage rates stay low.

If the economy were in any state close to normal, we suspect rates would be much higher. The US government has been borrowing and printing money during this recession and we will eventually pay for that with inflation. We can’t know for sure when, but if history repeats, we can fully expect it to happen. When inflation kicks in, interest rates and mortgage rates will rise.

Mortgage Rates Next Year Don’t Matter Now

My point is that mortgage rates are low now. Prices are low now. If you are planning to buy, this year and next year will probably be the best opportunity for a long time. If you’re in the market, watch prices and watch mortgage rates. In the long-term, you won’t need to hit the absolute bottom of both mortgage rates and prices. Anywhere close should put you in a solid position for future appreciation.

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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Daytona Beach Homes and Condos Inventory Analysis Report

Total months of inventory for Daytona Beach condos and homes stands at 14.3 months, but a slow rate of sales in the upper price ranges is pushing the number higher. Taking a look at the chart below, we can see that months of inventory in the lower price ranges is lower than in the higher price ranges.

Daytona Beach Home and Condo Total Months of Inventory

Inventory is higher in the lower price ranges, but sales are higher as well giving a months of inventory number of 10.7 months. In the highest price ranges, inventory rises to 28 months.

Daytona Beach Homes Inventory

Homes inventories are lower than condo inventories. Looking at the chart below, we can see again that the lower price ranges have the lowest months of inventory.

Daytona Beach Homes Only Inventory

The less than $200,000 homes price range show the lowest inventory numbers. The over $300,000 price range comes in as the highest. Now, let’s compare home inventories against condo inventories.

Daytona Beach Condos Inventory

Condo inventories are again lowest in the under $200,000 price range, but not as low as home inventories. In the higher price ranges, the inventories are double the lower price range. The over $300,000 price range show 26.1 months of inventory – high, but not as high as the home inventory in the price range.

Daytona Beach Condos Only Inventory

What Do Current Daytona Beach Real Estate Inventories Mean?

February has shown to be a low sales month over the past three years. We are not yet in the buying season, so we should be aware that months of inventory will fall as more sales are recorded during the higher sales months. Sales were up in February over last year. See Daytona Beach Real Estate Sales Up 27.7% in February 2010 for more information.

We are seeing much more strength in the lower price ranges. In February, 79.5% of all sales were under $200,000. There is also a distinction that we need to make. Not all homes are priced to sell. If a home is well priced, for its condition, in the lower price ranges, it is selling. If you are looking for the best price and value, you are likely to have competition.

There is a general view that prices are stabilizing, but have not stabilized. We need to segment the market into price ranges when considering such generalizations. Understand what’s happening in the price range where you are looking to sell or buy, not in the general market. Higher priced homes and condos do not have the same numbers of buyers competing and will take longer to become stable. Lower priced markets are probably very close to stable.

We report inventory numbers monthly, so check back often. Tremendous bargains are available in all price ranges. We are selling homes and condos in this market and helping clients find the best values. Please contact me with any Daytona Beach real estate questions at 386-566-7503.

Note: This report included Ormond Beach real estate, Port Orange Real Estate, and local communities including Daytona Beach Shores, South Daytona, Holly Hill and Ormond by the Sea.

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.