Daytona Beach Real Estate Up 15.7% for March 2009

We are off to a better start for the first three months of 2009 than 2008. How much better? Daytona Beach Florida real estate sales are up 24.3% in 2009 for the first three months. March sales are 15.7% over February.

Daytona Beach Real Estate Market Report Video - March 2009

Hereís a chart showing home and condo sales this year and last year:

Month

Sales 2008

Sales 2009

Month +/-

January

164

214

+30.5%

February

222

249

+18.0%

March

218

288

+15.7%

April

277

 

 

May

287

 

 

June

259

 

 

July

301

 

 

August

277

 

 

Sept

233

 

 

October

224

 

 

November

203

 

 

December

225

 

 

Total

2900

751

 

From the chart of 2008/2009 sales below, we can see that sales have begun to rise again. Traditionally, April through September are the highest sales months. So with the increase in Daytona Beach MLS sales in January and February of this year, we are in a much better position than last year. We are 146 properties ahead of last year's pace. I am receiving a lot more inquiries and doing a lot of showings. The sales cycle have increased because most of the properties are short sales or foreclosure and require lender approval. That takes extra time - sometimes a lot of extra time.

2008 Daytona Beach Real Estate Sales Chart

I've had conversations with a Title Company owner who stated that about 50% of the closing he has handled have not been listed in the MLS. This is very unscientfic, and I have no way of determining the exact number sold, but not listed. However, the information should be considered as part of local market knowledge.

Early and late in the year are the weaker periods for sales in Daytona Beach condos and homes. So, seeing an increase in sales early in the month is a good sign for the months to come.

Money is tight. Unless a buyer has top notch credit and 20% down, it's very difficult to get a loan. Mortgage rates are low, but most loans being made are refinancing of existing homes for prime borrowers. Check out our Daytona Beach Homes Weekly Report for weekly updates on intereste rates, sales, and more.

Fear. Watch CNN or Fox News for an hour and you will probably feel uncomfortable buying a pair of shoes, let alone a home. The old saying that good news doesn't sell newspapers has never been more evident than now. Many people are afraid for their jobs, their retirement and the next few months. They are not thinking about buying a home.  A new bailout seems in the works every week with the automakers taking the headlines for the past few weeks.

Median prices of Daytona Beach condos and homes were up in March to $133,500. February's median price was $127,500 in February. That means that 1/2 of properties sold below $125,000 and 1/2 above. That's low and we expect it to be pretty close to the low. Average price was down to $159,922 which continues going down from $166,945 in February.

Residential Daytona Beach property for sale inventory stood at 5494 units at the end of the month. With the increase in sales, we are now at a big 19 months of inventory, down from almost 34 months at the end of November. Inventory numbers started the year at 5,656 properties . So as sales fluctuate, months of inventories do as well. There are just too many homes on the market.

The market is still strongest in the under $200,000 price range at 75.7% of sales, the highest we've seen this year, up from 68.8% in January. That's why average prices and median prices are falling. Homes sold under $300,000 account for an incredible 90.3% of all sales. The higher price ranges are not selling at the same pace and are dragging the inventory in months figures down. Only 19 buyers were available to all the homes and condos competing for sales above $300,000.

Price Range

Number Sold

Percentage of Total

Last Month

Less than $100,000

96

33.3%

37.5%

$100,000 - $199,999

122

42.4%

37.5%

$200,000 - $299,999

42

14.6%

15.6%

$300,000 - $399,999

12

4.2%

2.3%

$400,000 - $999,999

16

5.5%

6.25%

Over $1,000,000

0

0%

<1%

The average price and median prices are readily explained by 75.7 of all sales coming at under $200,000. For a breakdown of condo sales, go to our Daytona Beach Condos Monthly Sales report.

You can see 2007-2009 sales trended at the Daytona Beach Real Estate Sales Trends. The chart shows sales and average home prices. In this case, we believe a picture is worth thousands of words.

Whatís the affect for Daytona Beach Homes for Sale?

Signals, we need signals that it's OK to buy. Those signals will come from:

  • Mortgage Money availability
  • Better economic news
  • Prices bottoming

Positive signals from any of the factors above will have a good affect on the market, and all three would go a long way to restoring the market.  On the downside, until defaults and foreclosures start to go down, market inventory will remain too high. Good news for buyers, bad for sellers. We have begun to see a few people calling a bottom to the market, but that remains to be seen. We will only know after the fact.

If you are looking for bargains, the next eight to ten months is probably your window. However, remember for short sales and foreclosures the process is much longer than normal.

Action to Take Now

Short sale opportunities abound. Speaking with local people involved in handling a lot of transactions, short sales prices are averaging about 30-40% below the currently perceived market prices. The deals are outstanding and if you have the resources, now is the time, especially in the higher prices ranges where there are few sales and more desperation among sellers. Foreclosures are marketed as real estate owned properties. You can learn more at Daytona Beach REO.

Sales of Daytona Beach homes were higher this month. We expect sales to be close to 2008 levels, perhaps a little higher. Our prices are still lower than many areas in Florida, especially for beachside communities, and with short sale pricing, you can get a great deal now.

If you are a buyer planning to make a purchase in the near future, there are a few things to monitor:

We publish weekly reports to keep you abreast of changes week to week. We were publishing this monthly report on our Daytona Beach Real Estate Blog, but have moved it here to put all the reports in one place. 

We issue the Daytona Beach Real Estate Market Report every month based on sales numbers that we see and key economic trends. We make no guarantees, but provide this information for your use. It should be useful if you are considering selling or buying a home in our area. Please call me at 386-566-7503 if you have any questions. Long-term real estate market analysis is available at Daytona Beach Real Estate Market Analysis. Itís worth a look.

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