Daytona Beach Homes

Have Daytona Beach Real Estate Prices Hit Bottom?

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.

Going Small in Daytona Beach

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

Daytona Beach Real Estate April 2011 Sales Analysis

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.

Home Improvements That Can Cost You

Not All Home Improvements Are Worth It

Not all home improvement are created equal. Some will never pay you back the full value of your investment.

Financial Web recently published an article citing two improvements that don’t pay back the full investment. They mention spa and pools and special purpose rooms. On pools and spas Financial Web says:

“The number one money trap for many home owners is installation of a
pool or spa. Very few residents are actually willing to pay the cost to
own and maintain a pool in their home.”

On special purpose rooms, they say:

“Adding a bedroom or bathroom to your home will generally add value.
Adding a recreation room, sun room or movie room, on the other hand,
will not often pay off.”

You can read the full article here –> Unrewarding Home Improvements to Avoid.

Obviously if you’ve already invested in these improvements, you will not get the return. However, if your purpose is sheer long-term enjoyment of a pool or spa, go for it. But, remember, other people (like buyers) won’t pay the premium for the pool or spa that you added.

When buying a Daytona Beach Home, keep in mind that what others value about their properties may not translate into the appraised value.

Spectacular Ocean Views – Daytona Beach Condo

Daytona Beach Condo

Mediterranean Building

Mediterranean Condo View

Many people prefer condos that are on higher floor, but this second floor luxury unit in the Mediterranean Condo building in Daytona Beach has some of the most beautiful views I’ve ever seen. Being on the second floor gives views of the ocean that you don’t see from higher floors. It’s almost like living right on the ocean.

This 3 bedroom / 3 bath condo was a former developer model and the design and layout are beautiful. Check out the video below to get a feel for the beauty of the condo and the views.

Check out Mediterranean Condo in Daytona Beach for more info on this amazing condo. Call me at 386-566-7503 for more information or to see the unit. You can also find more information on all Daytona Beach Condos for sale.

April Daytona Beach Home Sales Highest Since July 2006

April 2009 Daytona Beach Homes Sales

It was the end of the real estate bubble in Daytona Beach. 343 Homes and condos were sold in July 2006. August and September of that year saw sales of 306 properties. Since then, Daytona Beach real estate sales have been above 300 only once – in August of last year.

Homes sales recorded in the Daytona Beach MLS for April were 308 condos and homes. The highest since the bubble burst in July of 2006. And these are preliminary numbers taken late tonight. We may see that number rise a bit more when all sales have been recorded.

April is the beginning of the Summer sales season. Last year in April, 278 properties were sold. As we sit now, we’re 10.8% highers than last April and 6.6% higher than last month. For the year, sales are 19.5% higher than last year.

We will be issuing a full Daytona Beach real estate monthly report for April during the next week. We will also issue a full report on sales of Daytona Beach Condos.

The Daytona Beach MLS includes Daytona, Ormond Beach, Ponce Inlet, Port Orange, Holly Hill, South Daytona, Daytona Beach Shores and Ormond by the Sea real estate.

2 Things That Must Happen for Daytona Beach Real Estate to Grow

Daytona Beach Florida Real Estate Sales – 2 Things Need to Grow

There is a lot of news, analysis, analysis of analysis, finger-pointing, blame gaming, doom and gloom predictions, and plain bickering going on about the economy and real estate. It going to go out on a limb here and attempt to simplify what needs to happen for home sales in Daytona Beach to break out of the current level.

There are two major factors, and I believe only two, that focus our market problems:

  1. Lack of money for mortgage loans
  2. Lack of confidence of home buyers

Lack of Money for Mortgage Loans

As easy as it was to get a mortgage a few short years ago, it is that difficult now. Near perfect credit and 20% down is being required by many lenders. In addition, income to cover the payments needs to be verified. Why? Lender’s are looking to be as close to zero risk as possible.

For the Daytona real estate market to grow from current levels, credit must be available to people with good credit who fall into what used to be considered reasonable risk. This will happen, the question is when?

Congress and the Administration are attempting to pass a widely unpopular measure to remove bad mortgage debt for giant mortgage lenders. The reason is that with this debt on the books, they are hurting for cash to fund operations, and they are unable to borrow against the lousy debt. The banks and mortgage companies don’t trust each other because they are nowhere close to zero risk themselves. Who would want to do business with Washington Mutual, IndyMac or Wachovia knowing there disasterous financial conditions.

If this bill is passed in some modified form, credit may be available much sooner than if the markets take care of themselves. In the meantime, the market will continue as it is. I’m not calling it bad now, bad was January, when only 164 homes were sold in the Daytona Beach MLS. I’m not calling it good by a long shot. Too many sellers are really hurting because of the drop in prices and the lack of buyers.

Lack of confidence of home buyers

Home buyers lack confidence in two ways:

  • Buyers are unsure that prices are finished dropping
  • They are unsure about the economy in general

Falling Prices

Are prices finished dropping? Probably not and the reason is that short sales and foreclosures are flooding the market. Short sales are selling well under market value and sellers without problems are competing against those lower prices. The economically distressed sales are depressing prices.

I could argue that buyers can get such good deals now, that they are protecting themselves pretty well against prices falling, but that is a longer term view. I believe the deals that people are getting now will be the best for a long time, but, they will not be able to sell until the market recovers. So they are getting great deals, but they’re stuck with them for a few years.

General Economic Conditions

Everybody knows that consumer confidence is low and if it wasn’t low before, it is now. When the President of the United States says that unless Congress takes action immediately, Americans will lose their pensions and jobs and that home values will fall further, most people panic – at least a little. Now honestly, President Bush doesn’t know for sure what will happen, no one does. But, action is required. The bailout of Wall Street excesses leaves a bad taste in my mouth, and if polls are to be believed, 8 or 9 out of 10 people agree with me. But something needs to be done and this is a good start.

If money is available for mortgages, people still need to be confident that they will have their jobs and companies and a way to pay the mortgage.

We Need Both Mortgage Money and Confidence

We need both available mortgage money and buyer confidence for the Daytona Beach real estate market to grow. One will not work without the other. These are tough times in the real estate business, maybe the toughest ever, but this is part of a cycle and sales will eventually grow. When you, your family and your friends feel better about the economy and your situations, then we will have turned the corner. If at that point money is available for mortgages, the pent up demand that’s building now will result in market growth.

Until then, it takes cash or great credit to buy. People who are in that position can take advantage of a great prices right now. People call me now with requests that were impossible a few years ago. They want more house or condo and amenities at low prices and we are finding them what they want. I am making sales and I’m amazed at the value people are getting for their money. If you want to take advantage of great deals, call me now at 386-566-7503. Homes in Ormond Beach and Port Orange, with their popular schools and lifestyle, are now at affordable prices we couldn’t have imaged just a short time ago. There really are tremdous opportunities.

Waterfront Daytona Beach Homes | River | Beach | Lakefront Living

Daytona Beach Homes – Live on the Water

River – Beach – Lakefront Living

Water, water everywhere. You can find Daytona Beach homes and condos, on the Atlantic ocean, the Halifax and Tomoka rivers, and large and small lakes. On top of that, we get to enjoy our water activities year round. Riverfront, lakefront and oceanfront homes and condos also dot the shortes of Ormond Beach, Port Orange and New Smyrna Beach

On the Ocean

There are about 26 miles of beaches in Volusia county. Real estate along the beach includes condos starting at about $150,000 and direct oceanfront houses starting much higher – at about $800,000. Houses are so much more expensive because of the cost of the land. That’s why condos are the lowest price way to live on the beach. The cost of the land is shared by all the owners of the building. There are small houses, big houses, small condos and high-rise giants and everything in between. The choice is yours.

On the River

If oceanfront real estate is outside your price range, or like me you like the river more, waterfront property can be much less expensive on the river. Riverfront condos start at about $59,000. I have a beautiful riverfront condos in Daytona Beach listed at very good prices.  Riverfront homes start at under $230,000. Over the 4th of July, we visited friends on the river. Sitting on the dock and back deck, you would think you’re in another part of the country. The cool water and gentle breezes drop the temperature to make for a very comfortable evening.

On the Lake

The lowest cost alternative for waterfront living can be one of the many lakefront homes in Daytona Beach. Now, let’s be clear, some of these lakes are really retention ponds that back up to the homes and condos. BUT, they are often quite beautiful and no one can build behind you. The Daytona Beach area does not have any large recreational lakes, there was just no room left after the ocean and rivers were built, but there are many good size lakes for fishing and swimming. These lakefront homes start at very low asking prices, so if you’re interested in these give me a call at 386-566-7503 and I can send you a list meeting your criteria.

It’s all here on the water. Whether you’re looking for a small place on the river or among the beach villas on the ocean, you can find it in Daytona, Port Orange or Ormond Beach. Vacation here or vacation year round. Come enjoy the water, the sun and the bright life. Homes and Condos in Daytona Beach can make that dream a reality.