Have Daytona Beach Home and Condo Prices Seen the Bottom?

I’ve been looking at the Case-Shiller home price data today and the data seems to be showing that the two Florida areas included in the index are at or near bottom. The index includes Miami and Tampa metro areas. There is no specific listing for Daytona Beach home sales, but I think we are pretty much in line with Miami since we are on the east coast while Tampa sits on the west coast.

During the past twelve months, prices in Miami are up 1.8% while prices in Tampa are down 2.0%. If we average them, we’re pretty much flat. That’s a pretty good indication of where we are in Daytona Beach, Ormond Beach, Port Orange and the surrounding areas.

The Pundits Speak

The National Association of Realtors Chief Economist, Dr. Lawrence Yun, and Zillow chief economist Dr. Stan Humphries, have spoken recently on the market. While they’re not in complete agreement, their message is that home prices will bottom or rise slighly in 2012.

Dr. Yun says, “The housing market has clearly turned the corner… Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses.”

Dr. Humphries said recently, “For people who have been waiting to time their home purchase close to market bottom, it’s time to start shopping… When the bottom will hit will vary by market, and it’s nearly impossible to time a purchase exactly right. But home prices are not the only part of the equation. Buyers also should take into account the possibility that rising mortgage rates could offset any further home value declines that may occur.”

You may be thinking there’s some conflict of interest with these organization predicting a bottoming of prices, but I think it’s important to note that they haven’t made predictions of this sort previously. They are very careful because their predictions will be well publicized and they’ll lose credibility. They err on the side of caution. So when these two chief economists speak and agree, it’s a pretty big deal.

What Now For The Daytona Beach Real Estate Market?

As Dr. Humphries says above, no one can predict the exact bottom. Further, just because we’ve hit bottom doesn’t mean prices are going to leap upward. From the Miami Case-Shiller data, we see that the area hit bottom about six months ago, but there hasn’t been a big jump in prices since then.

Buyers of Daytona Beach homes and Daytona Beach condos who have been on the fence about prices, may want to start looking now. We believe there are plenty of bargains out there and there will be for the short term. Remember all price data reflects averages. Some buyers will get much better deals than others. That’s where we can help. We know the market and what’s selling and can help you get the best price for a property. We also are still working a lot of short sales and that’s where many of the best bargains can be found.

Please give Lynn a call at 386-566-7503 to discuss your options. Check here to –> search all homes and condos for sale in the Daytona Beach area.

Technorati Tags Daytona Beach Condos, Daytona Beach Homes, home prices, port orange, Short Sales

Mortgage rates are very low right now, but it can be very difficult to qualify for a conventional mortgage. A stellar credit score and 20% down payment is needed for many conventional loans. Government guaranteed mortgages, such as a VA, FHA or USDA mortgage are a better option for many people.

The major advantages of the government guaranteed loans are low to no down payment and a lower credit score won’t automatically disqualify a borrower.

USDA loans can be made with no down payment and a credit score as low as 620. Not only that, but the loan can be for 103.5% of the appraised value. Up until now, there’s been no mortgage insurance, but that’s going to change as of October 1st. There is a funding fee with government loans and the new USDA funding fee will be 2.0%. The funding fee is down from 3.5% to help cover the new annual 0.3% mortgage insurance premium (MIP).

Another change to USDA loans will be changes to the eligibility maps. Since the last changes, suburban areas have creeped into the program and it’s expected that many of these areas will loose their eligibility. However, that doesn’t mean that a lot of towns around larger cities won’t be eligible. Towns of about 25,000 have been eligible in the past. We suspect that will remain with the new changes.

It’s a good idea to check out your eligibility for government guaranteed loans. They can keep money in your pocket by reducing your down payment and rolling closing costs into the loan. We suspect that much of Flagler county and Palm Coast homes will be eligible with the new changes.

It’s probably a really good time to consider buying a home if you’re going to finance. These loan rates will not hold. We suspect that when loans are freely available, the rates will explode. It’s interesting to note that rates are incredibly low, but few people qualify. One about 20% of Daytona Beach homes purchases are purchased using conventional mortgages. Case buyers account for about 55% and government loans and other forms of financing account for the rest.

Technorati Tags Daytona Beach Homes, Mortgage News, No Money Down Mortgage, Palm Coast Homes, USDA Mortgage

There seems to be a trend developing where people are choosing smaller houses and condos. There are lots of small houses in Daytona Beach and surrounding areas. In Ormond Beach, Ormond by the Sea and Daytona Beach, there are a lot of bungalow type houses that are ideal for people looking for a great location smaller home.

Mint.com published an article last week talking about the trend to smaller homes. See - The Tiny House – Save Big By Living Small. In the article, they give four reasons for people moving to smaller or tiny houses:

• Building or purchase cost reductions
• Energy Efficiency
• Less Hoarding
• Maintenance economy

These are all great reasons, but I think one is missing - the chance to live in the area of your dreams. Do you see yourself waking up in the morning and walking on a beautiful beach? You can do that for under $125,000 in the Daytona Beach area. That’s pretty amazing when compared to other areas of the country.

Prices on the mainland are even lower and it’s still just a short drive to the beach. This area is great for boating and golf, tennis and other sports. It really is sun and fun. Buying small is economical. It conserves capital and retirement funds and allows you to live better on less. Maybe it’s worth thinking about.

You can view homes in the area by clicking on one of the following links. Each of the links will allow you to search by price:

Daytona Beach Homes for Sale
Daytona Beach Condos for Sale
Ormond Beach Homes for Sale
Ormond Beach Condos for Sale
Port Orange Homes for Sale
Port Orange Condos for Sale

Technorati Tags Daytona Beach Homes for Sale, Daytona Beach Houses for Sale, Daytona Beach Small Houses, Small Houses in Daytona Beach

Port Orange is a beautiful vibrant community on the Atlantic coast of central Florida. Many Port Orange Homes for sale will allow you to live in an upscale neighborhood without the upscale price. Located just south of Daytona Beach, many people in the area choose to live in Port Orange. It’s home to a beautiful City Center, golf courses, the Halifax River, Spruce Creek and much more. The schools are some of the best in Florida.

We’ve made it really easy for you to search homes for sale in Port Orange. Click on one of the links below to view all listings in a price range.

Port Orange Homes Under $100,000

Port Orange Homes $100,000 to $200,000

Port Orange Homes $200,000 to $300,000

Port Orange Homes $300,000 to $400,000

Port Orange Homes $400,000 to $600,000

Port Orange Homes $600,000 to $800,000

Port Orange Homes $800,000 and above

You can also find out more about some of the more popular communities in Port Orange by going to:

Ashton Lakes Homes for Sale

Cypress Head Homes for Sale

Town Park Homes for Sale

Spruce Creek Fly In Homes for Sale

Visit Port Orange Real Estate for more information on the area. If you have any questions, please call Lynn Byrne at 386-566-7503 or David Byrne at 386-566-4169.

We’ve recently set up a new site just on Port Orange. Please visit Port Orange Homes for Sale.

Technorati Tags Ashton Lakes, Cypress Head, Port Orange Homes for Sale, Port Orange Real Estate, Spruce Creek Fly In, Town Park

April 2011 Daytona Beach Real Estate Analysis Published

Are Daytona Beach homes and condo prices finally at the bottom? Are sales holding at their high levels? In what price range are the highest sales?

We’ve just completed our analysis for the month of April and our take on the current market. To get the full report, go here –> Daytona Beach Real Estate April 2011 Sales Report.

The quick take is that sales are up slightly over last year and big-time over 2009. Median and average sales prices have been steady within the current range for about a year. Home inventories are down over 25% since September 2008 and sales are up about 64% since then. Current months of inventory is at 10 months. In September 2008, the months of inventory was at 21.6 months.

While we can’t say that prices have hit bottom, we can say that we are near. That assumes, of course, that there are no catastrophic economic problems.

The numbers are all trending in the right direction and I’m seeing that in the market. Home and condo sales under $200,000 account for 78.7% of all residential sales and sales under $300,000 account for 90.4%. That mean that there is a huge gap in sales between lower priced and higher priced homes. The market might be considered hot for well-priced homes under $200,000 and cold for home above $300,000.

It’s important to keep in mind when thinking about real estate prices, that we remember that every sales is the result of negotiation between a buyer and a seller. The numbers reported in the Daytona Beach MLS are useful for guidance, but your skills in negotiating and choosing an agent to find the best value are important. When working with an agent, make sure to select someone who is active in the market and closing. With short sales and foreclosures, you need someone who is working with lenders every day and knows the complexity of those negotiations.

Please call me to discuss your needs. I’m available at 386-566-7503.

Technorati Tags Daytona Beach Condos, Daytona Beach Homes, daytona beach mls, Daytona Beach real estate analysis

A Few Thoughts About the Current Daytona Beach Market

I was looking through the MLS today at some of the Daytona Beach real estate market numbers. I found a few interesting things - cash is king; 25% of homes and condos sold were on the market for 30 days or less; and August sales will be higher than July.

Cash is King

Well over 50% of home and condo sales in Daytona Beach are bought with cash. With a few days left in August, 58.2% of homes purchased this month so far were paid for with cash. This is very close to the percentage in July. Conventional loans account for only 27%. This tells me two things:

• There’s a lot of cash investors out there
• Mortgage loans are still difficult to obtain for many people

Aggressively Priced Homes and Condos Sell Quickly

There are 5188 homes and condos on the market as of this morning, but so far in August 24.8% of properties sold were on the market for 30 days or less and 44% have been on the market for less than 60 days.

These numbers tell me that aggressively price homes and condos are selling quickly meaning that there is a hot market for these properties. Yes, foreclosures are influencing these numbers, but they don’t account for all sales. Short sales are generally not in these numbers either. Although many banks are getting better at turning around short sales offers, most closings are taking over 60 days.

If a home is priced to sell in this market, it will sell.

August Sales Will Surpass July

I am 99.9999% that August sales will surpass July. As of this morning, with two big closing days left in the month, 314 homes and condo sales have been recorded in the Daytona Beach MLS. July sales came in at 330 properties. Many closing take place on that last day of the month, so it’s a slam dunk that August sales will be higher.

I’m involved in selling Daytona Beach, Port and Ormond Beach homes and condos everyday. When I look at numbers like I did today, I see things that can be useful for buyers and sellers. This is a sampling. If you would like to talk about the market, give me a call at 386-566-7503. I’m happy to answer questions about the general market and what’s available.

Technorati Tags Daytona Beach Condos, daytona beach mls, Daytona Beach Real Estate, Foreclosures, Ormond Beach Homes and Condos

Renting Your Daytona Beach Vacation Home or Condo

It’s a very good time to buy a vacation home or condo in Daytona Beach, Ormond Beach and Ponce Inlet. Prices remain low and there’s still a fairly large inventory. Many of my buyers are buying second or vacation properties. Some of these buyers are renting the properties out for a few years before they are ready to make the move.

I just found a good article at the Finance Blog, written by Ilyce Glink who is a nationally syndicated real estate author and writes for CBS Moneywatch. In Renting Your Vacation Property? Here are Nine Things You Need to Know, she lists the following 9 things to consider:

1. Get the word out.
2. Be visual.
3. Make your property appealing for travelers.
4. Anticipate your renters’ desires.
5. Price it right.
6. Describe your property in minute detail.
7. Write the right ads.
8. Respond to questions immediately.
9. Have a handle on the logistics.

I urge you to read the article for more detail, but the point is that it takes some work to rent and manage your property. There will be expenses, just like any other property. If you are living close to the property, you may want to handle renting and managing the property yourself, if you are out of town, you will probably need a property manager.

Property management firms vary in fees and services. You will need to shop around. As part of my full real estate services in Daytona Beach, I do offer property management services that are reasonable and reliable. I’ve been managing property for about seven years and have solid relationships will plumbers, lawn services, pool services and a very few select handymen. My large internet presence also makes renting properties easier.

However you go about, know that you are in a competitive situation with all the other similar properties. You need to be aggressive in marketing your home or condo and responsive to your renters.

Technorati Tags Condo, Daytona Beach Second Home, Daytona Beach Vacation Home, Real Estate Service in Daytona Beach

580 More Daytona Beach Homes and Condos Sold in 2010 First Half

Sales of Daytona Beach area real estate are up 33.4% in the first half 2010 compared to 2009 and 62.3% over the first half of 2008.

Here is the breakdown of the first half sales for the last three years:

• 2010 - 2316 homes and condos sold
• 2009 - 1736 sold
• 2009 - 1427 sold

Numbers tell a little of the story, but the picture below shows the progression visually.

It’s obvious that the market has improved significantly over the past two years. Each month in 2010 has shown an increase in sales from the month before. Sales in June were 481 condos and homes sold.

The market is much stronger in the lower price ranges and that where about 90% of all sales are taking place. Homes and condos under $200,000 made up 74% of sales in June and sales under $300,000 made up 88.1% of all sales. Check out the June 2010 Daytona Beach homes sale report.

Contact Lynn at 386-566-7503 for more information or to discuss the current market and your options.

Technorati Tags Daytona Beach Condos, Daytona Beach Homes, Daytona Beach Real Estate Sales

Cleaning Your Home or Condo Hardwood Floors

Beautiful hardwood floors are common in Daytona Beach area homes and condos. There’s a hard way and an easy way to clean hardwood floors. You can spend good money on specialized products, but an old standby from your pantry can work wonders.

Plain white vinegar used properly will clean you hardwood floors without worries about harsh chemicals on your floor or in the air. Vinegar won’t harm your children or pets either.

I found a nice article that describes the process of cleaning your hardwood floors. It’s written by a Brit, so enjoy the color (colour) of the language. Oh and 150ml is about 5 ounces and 4.5litres is just under 1 gallon and a quart (4.2 gallons). Enjoy the article.

Cleaning Your Hardwood Floor

Graham Baylis

Now that you have your beautiful hardwood flooring laid and settled, you need to know how to care for it.  Natural wood is very easy to care for and will last a very long time if looked after properly.  You do not need to spend hours cleaning and polishing your hardwood floor, a short time every few days or weekly will be enough.  There are many commercial products on the market for cleaning and caring for your wooden floor, however, there is a very effective old fashioned remedy which is cheap and easy and very natural.  It is distilled vinegar, the clear one which most of us have in our larders anyway. [Read more →]

Technorati Tags Cleaning Hardwood Floors, Condos, Daytona Beach Homes, Wood Floors

Remember - All Real Estate Is Local

Getting your real estate news through national news sources is dangerous to your financial health. I read a lot about real estate and too often I see so many examples of news reported that just doesn’t fit with our local situation.

I read today that mortgage applications are way down over the past four weeks. My initial reaction was a little panic about my business, but then I remembered that what’s happening nationally is out of sync with what’s happening in the Daytona Beach area.

My business is good. We had 17 phone and email inquiries over a 2-1/2 day period this week. These are people are buyers. We have a load of closings on the books over the next two to three months and we are writing a lot of contracts.

The Daytona Beach real estate market is out of sync with the national market. The things that make Daytona Beach, Ormond Beach and Port Orange attractive have not changed. The beach, ocean and weather that made the area to begin with are still here.

I urge you to take your real estate news in local doses. A good place to start is our just published Daytona Beach Area Home and Condo Sales Up in May 2010. We’ve also just updated our foreclosure pages to reflect current listings, you can see that at Daytona Beach Foreclosures Pages Updated.

As always, you can call me to discuss any home or condo, or just talk about the local market.

Technorati Tags Daytona Beach Homes, Real Estate News