Daytona Beach Real Estate Sales lower than May But Improving

We just published our Weekly Daytona Beach home sales report. Sales in June started sluggishly and we are still about 10% behind May. We’ve made up a lot of ground in the past week. Last Monday, we were 28.7% behind May. We should know the final numbers for the month by Thursday when we will publish our monthly report. You can read the May Daytona Beach Real Estate Report here.

As of this morning, 232 homes and condos were sold through yesterday. That’s already above January, February and March sales numbers. We won’t make the 285 sales in June, but we are still much better than the dismal 164 properties sold in January.

We will need to see what happens in July to see if we’ve just had a small blip, or, sales are turning down. My business is much better and I’m working with a good number of buyers. Agents in my office are also seeing new sales. I suspect current sales level will hold. I don’t see a large increase, but a regular monthly sales level of between 250 to 300 residential properties a month.

In other weekly news:

• Mortgage Rates dropped slightly to 6.23% for a 30 year conventional mortgage.
• Daytona Beach Residential Homes Inventory numbers dropped slightly to 6142, 12% below January and the lowest number of this year.

Contact me if you need additional information or real estate sales or information on homes and condos in Daytona Beach.

Daytona Beach Homes - Remember We Have a Great Beach

It’s very odd, but a tourist who comes to Daytona Beach for a one week vacation, will spend more time on the beach than most year round residents. I live on the mainland, but I sell real estate in Daytona Beach and manage property beachside, so I’m beachside most days. I get to the beach a few times a month, but that’s about it. Yes, I’m busy, but I love the beach.

Daytona Beach has some amazing beaches. The Travel Channel lists it as the number 10 beach in Florida. I rank it number 3 on my list. You can see my list and the Travel Channel list at Florida Beaches rated.

Daytona has a variety of beach styles in its 26 miles of beach. Most of the crowds can be found around the boardwalk. This is where the show takes place with the most vehicle traffic. It can be fun, but I usually go a little further north where it’s not so crowded and the beach is still wide, flat and white. I have several friends who live in condos in Daytona, so it’s natural to visit and take in the beach.

To the north, it’s like your in a different world. There are dunes and the beach is not so flat. You’ll see more people fishing up there. Just go about 3 miles north of Granada Blvd. (SR 40) and you’ll be there.

To the south, Daytona Beach Shores is less crowded than Daytona Beach and the beaches are flat and white and wide. It’s very nice. Further south is Wilbur-by-the-Sea and Ponce Inlet. Ponce Inlet is popular with surfers. The beaches are much less crowded because there are no hotels and only a few restaurants and restaurants.

All Daytona Beach area beaches are public, but driving is not permitted on all areas of the beach. Driving is not permitted north of Granada Blvd. and south from Emilia Avenue in Daytona Beach Shores to Ponce Inlet. Different areas of the beach may be closed due to tides, storms or beach work. You can get daily beach driving reports at http://volusia.org/Beach/driving.htm

When I’m not busy selling Daytona Beach Homes, I plan to spend more time at the beach. How about you. I hope I see you there.

Oceanfront Daytona Beach Condos and Homes - Watch the Maintenance Costs

Living on the beach in Florida is great. It’s a pleasure to get up in the morning and take a walk on the beach, or enjoy your first cup of coffee watching the waves breaking and birds and people. Sunset walks are my favorite. It always seems brighter and more relaxed on the beach.

We’ve lived both on the beach at 3072 Oceanshore north of Ormond Beach and in the Sherwin Condos in Daytona Beach Shores. We enjoyed both, but I must say that it was much easier living in the condo.

Daytona Beach Oceanfront Home Maintenance

The biggest problem with the home on the beach is maintenance caused by salt air and sea spray. Nearly every morning the cars are covered in a thin film of salt moisture and the windows facing the beach very quickly film over from salt spray. So, my first piece of advice is to park the car in the garage, and to have a good window cleaner on call. Also, be sure to look at all the hardware and fittings on the outside of the home. The salt air will corrode the wrong materials fast - really fast. There is specific hardware and fittings required for oceanfront properties. Make sure the right material is installed before you buy.

Sand will get everywhere in Daytona Beach oceanfront homes. I don’t know how, but it will get everywhere. Whether you open windows and doors or not, you will find sand in unusual places.

Daytona Condominium Maintenance

Condos are much easier, especially on the higher floors. We were on the 16th floor, but we continuously battled sand from the beach in the tracks of the sliding doors and in the carpet. We cleaned those tracks every week. We also had the salt film issues on the doors and windows, but not as bad and they were easier to clean.

Many Daytona Beach condos are right on the beach. Cars should be parked under cover, or plan regular trips to the car wash. The maintenance fees will cover a lot of the maintenance but make sure to find our exactly what’s included. For instance, do you or the condo association pay to have your balcony rails painted. Also, your air conditioner on the roof is usually your responsibility. So, plan for regular maintenance, cleaning and scraping of those units.

Because of hurricane and their flooding threats, homeowners insurance for Daytona Beach oceanfront homes and Condos on the beach is more expensive on the beachside than on the mainland. The cost can be almost double for the same type of home in different locations just a mile or so apart.

Living on the beach is great, but you need to go in with your eyes wide open. Maintenance costs will be higher than on the mainland, so plan accordingly.

Update on June 2008 Daytona Beach Florida Real Estate Sales

After two months of significant gains, it looks like sales of Daytona Beach Homes will fall in June. At this point, we are 28.3% behind the May pace. What does this mean?

Well first, when sales increased 27% in April, we were cautious about saying that the market has turned around. Second, trends almost always take a sawtooth pattern, not a straight line.

Now, the truth is that we really don’t know what is going to happen next. I have several properties under contract that will close next month and agents in my company also have several contracts ready to close next month. I am working with more people to find properties than in the past two years. I can tell you that activity is up and my sales are up, but that’s one agents story.

Daytona Beach Florida Home Inventory Numbers

Daytona Beach residential real estate inventory numbers (6158) are holding steady, but they are still very high. We have not turned the corner just yet and we expect that we will see an up and down ride for the rest of the year.

Mortgage Rates

Interest rates this week held steady and dropped very slightly. We are still concerned about inflation pushing home mortgage rates up. It’s very important that you check mortgage rates regularly if you are going to finance a house or condo purchase. Mortgage rate increases can lead to significantly higher monthly payments, or less house.

Condos for sale in Daytona Beach have not been selling at their historic rate. We expect that that rate will return and some point and that will give a boost to overall sales.

A more detailed Daytona Bearch Florida Real Estate Weekly Report is available. We will be providing our monthly Daytona Beach Real Estate analysis for June in the middle of next week, after all the sales number are in.

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

Buying Daytona Beach Homes - What’s Most Important Right Now?

I’ve just posted a new article, Should I Buy That Daytona Beach Home Now or Wait?, on my main Daytona Beach Real Estate Information website that looks at the two most important factors to buying a home:

1. Home Price Stability
2. Mortgage Rates

If you’ve seen some of our recent posts, you know that we are as concerned about interest rates on home loans as we are price stability. There is just so much inflationary pressure in this economy that we see long term interest rates increasing to provide a hedge against that inflation.

We also talk about the two major decisions you will make when buying Daytona Beach condos or Daytona Beach Homes.

1. The Personal Decision
2. The Financial Decision

The personal decision is often emotional and it should be. You need to buy a home or condo that you love, or at least like a lot. It’s the financial decision that is almost everyone’s focus right now. There are some great opportunities and homes for sale in Daytona Beach. We are still one of the lowest priced coastal areas for condos and houses. Read the article on Buying Daytona Beach Homes to see how buying decisions are different for cash buyers and those financing their purchase.

Technorati Tags Daytona Beach Homes, Daytona Beach Real Estate

Is affordability Driving Market Bottom for Daytona Beach Homes?

Maybe. Over the past few days, we’ve seen a few articles that are saying that the bottom of the recent big price drops may have been reached. We also see that the median price of Daytona Beach Homes has jumped from $175,000 in May to $189,000 this month. That’s a fairly big increase, but we are not ready to call the bottom of the market. Here’s why:

• Just as we are increasing sales and prices are rising, mortgage rates jumped 0.5% over the past two weeks
• Market behavior by sales price range is very different
• Daytona Beach Condos are selling below historic percentages

Mortgage Rates Jump

We reported a few days ago that mortgage rates jumped 1/2% in the past two weeks. This will impact buying decisions and may put pressure on prices for buyers to get the same home value at a higher mortgage payment. Many people buy their homes based upon the total payment, not necessarily home price. See Mortgage Rate Increases Headline Daytona Beach Real Estate News for more on the impact of the mortgage rate increase.

Daytona Beach Real Estate Market Segmentation

There are three distinct markets that we have identified through our recent analysis:

1. Daytona Beach Homes for sale under $200,000
2. Daytona Beach Homes for sale over $100,000
3. Daytona Beach Condos

In May, over 58% of all sales in Daytona Beach were under $200,000 and 85% were under $300,000. We would say that this market is fairly stable and in balance. Homes sold at over $300,000 are not selling at the same rate and we expect the price bottom has not been reached in that market.

Daytona Beach Condo Sales Lagging

Finally, condos have historically been selling at about 21% of all home sales, or, one condo for every 4 houses sold. Last month, condos made up only 13% of sale and this month to date, they make up 17%. So the condo market is not showing enough strength yet and will probably see prices drop a little more.

Our Call for Daytona Beach Real Estate Prices

Our analysis says that we are at or near the bottom of the under $200,000 house market. Other markets are lagging and sellers will need to be very aggressive in those markets, resulting in price drops. The condo market is still soft and we are not willing to call a bottom to that market.

The good news is that homes are more affordable and because of this, new buyers, who were priced out of the market in the past, can now afford a home. New buyers coming into the market can do nothing but improve the market.

I’m not an economist, I’m a Daytona Beach Real Estate Agent who looks at the numbers and talks to a lot of people. My personal sales are improving this year and I have had a lot more inquiries and showings in the past few months. I am busy again. This is not translating into as many sales as I would like, but, is an indicator that things are improving “beyond the numbers.”

The Daytona Beach Homes market will eventually stabilize as will the economy. We’ve seen these cycles before and we’ll see them again. We will continue to analyze and report as best as we can.

Technorati Tags Daytona Beach Condos, Daytona Beach Homes, Daytona Beach Real Estate, Daytona Beach Real Estate Agent, Real Estate Market Analysis

Daytona Beach Real Estate News - Mortgage Rates Up 1/2%

Mortgages rates are up 1/2% over the past two weeks. This is not good news for people in the market for Daytona Beach Homes or condos. The 30 year fixed conventional mortgage rate was at 5.8% two weeks ago. The rate today is 6.3%.

What does an increase of 1/2% mean when making your home buying decision. If $200,000 is financed, here’s how it breaks down:

$200,000 financed at 5.8% = $1,183.71 monthly payment
$200,000 financed at 6.4% = $1,241.86 monthly payment

The difference in payment is $58.15/month.

Looked at another way:

$200,000 financed at 5.8% = $1,183.71monthly payment
$191,000 financed at 6.3% = $1,185.98 monthly payment

Basically, if you are financing 80%, you get $11,250 less home for the same payment. ($250,000 vs. $238,750 at 80% financing)

Will prices adjust further downward because of increased interest rates? We can’t be certain, but at some point, inflation will cause prices to rise. We’ve recently been hearing about housing housing affordability putting the breaks on falling home prices. We believe that’s possible and for the first two weeks of June, the median Daytona Beach condos and homes sale price is up $15,000 over May and the average sale price is up about $14,000. This number could change, but median prices had been dropping for a while now. We’ll see what happens going forward.

For a more information and analysis, see our weekly Daytona Beach Real Estate Market Report.

Technorati Tags Daytona Beach Condos, Daytona Beach Homes, Daytona Beach Real Estate, mortgage rates, Real Estate News

Where to eat in Daytona Beach - When You Just Don’t Want A Chain

What do good restaurants have to do with Daytona Beach Homes for sale? Well, to me it’s very important. When looking at property, a good meal can be a good break. And after a day of looking at Daytona Beach and Ormond Beach real estate, you may be ready for a great meal.

If you’re planning a visit from out of town, these are some great restaurants to try and enjoy.

I just posted a new page on my main Daytona Beach real estate site recommending Daytona Beach restaurants including Ormond Beach and Port Orange. I have eaten at all of these restaurants many times, with the exception of Cerchio, but it just opened. There are recommendations on breakfast places, Mexican food, Chinese food, Italian, music and food and more. I also reveal my favorite restaurant in the area.

There are a lot of good restaurants and I’m not a food critic. I am a Daytona Beach real estate agent, so I’m all over town and I probably eat out more than most people. It comes with the job. So these are the places that I try to get to if I can.

Try them and let me know what you think. If you have a place that you want to recommend, just leave a comment and it be permanently included as part of this post.

Bon Appetite! Enjoy our Daytona Beach restaurants.

Technorati Tags Daytona Beach Homes, Daytona Beach Restaurants, Ormond Beach Real Estate

How Do Florida Foreclosures Impact Daytona Beach Real Estate?

It’s prices not foreclosures hurting the Daytona Beach Homes market.

Foreclosures in Florida continue to headline news stories, and nationwide over 1,000,000 homes are in foreclosure. Daytona Beach Homes have been impacted, but not nearly as much as other areas in Florida.

Here are some of the numbers for comparison (1 foreclosure for every x number of homes)

Florida Foreclosure Rates for April 2008

Volusia (Daytona Beach/Ormond Beach/Deltona/Port Orange) 1 foreclosure for very 350 homes

• Flagler (Palm Coast) 1 in 204
• Seminole 1 in 356
• Orange (Orlando) 1 in 222
• Osceola (Orlando) 1 in 109
• Pinellas (St. Petersburg, Clearwater) 1 in 513
• Dade (Miami) 1 in 161
• Hillsborough (Tampa) 1 in 264
• Sarasota 1 in 248

Counties in the Panhandle region of Florida are in the best shape with over 1 foreclosure for every 1,000 homes. (Source: Realtytrac.com)

In general, Volusia County and Daytona Beach are in better shape than many of the other counties in Florida. Florida, overall, is second in foreclosure rates behind California.

Sadly, these high foreclosure rates are not going to go down significantly for a couple of years. 5/1 ARM sub-prime mortgages without income verification were being issued through 2005 and will not come due until 2010. The biggest problem, in our view, is that prices have dropped and we have not had an

Technorati Tags Daytona Beach Condos, Daytona Beach New Homes for Sale, Ormond Beach Real Estate

Daytona Beach Real Estate Market Update for June 9, 2008

Sales of Daytona Beach Homes and condos for June are lagging behind the first week of May by 13 properties (41 vs. 54). We don’t find this alarming, but, we will watch the coming weeks with interest.

Mortgage Rates

Mortgage rates were up slightly for fixed conventional mortgages, while the 30 year jumbo rate was down slightly. 5/1 adjustable rate mortgages (ARMs) dropped slightly. We continue to emphasize our concern that mortgage rates will come under pressure unless inflationary pressures from fuel, food and government borrowing abate. We don’t see that happening soon.

Daytona Beach Home Inventories

Home inventories are stable at 6159 residential Daytona Beach homes for sale. This figure includes houses and condos. 6159 represents about 22 months of inventory on the market, with about 14 months in the under $200,000 price range. Of course that means homes and condos in higher price ranges have more inventory on the market and are taking longer to sell. In fact, in May, 85% of Daytona Beach property sales were sold at under $300,000 with almost 60% sold under $200,000. See May Daytona Beach real estate sales results for more.

Recent results have been encouraging, but there is still a lot of uncertainty in all markets. There are great deals to be found. I visited the home of a friend in client yesterday who was able to buy a home in Plantation Bay at well under market price. The home sits on a double lot on a lake with a beautiful pool and 99 palm trees on the lot. There is a lot of wonderful Ormond Beach real estate like this home available at prices we probably won’t see again.

Daytona Beach real estate will rebound before some of the other areas in Florida. Our high prices were still low compared to Miami and some of the gulf cities. We are sure living in interesting times.

Technorati Tags Daytona Beach Homes for Sale, Daytona Beach Property, Daytona Beach Real Estate, Ormond Beach Real Estate