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.

Some Thoughts on the Daytona Beach Real Estate Market

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.

Federal Reserve Chairman Predicts Home Sales Spike

Federal Reserve Chairman Ben Bernanke Talks About Home Sales

Kenneth Harvey at Realty Times reports on a speech that Federal Reserve Chairman Ben Bernanke gave in New York a couple of weeks ago. Mr. Bernanke said, “Housing in the coming year is going to be a relative bright spot – a helpful driver of national economic growth, rather than the wet blanket it’s been for the past couple of years.”

Can you believe it. Housing that has been a weight around the neck of the economy, could actually stimulate the economy next year.

Mr. Harvey also reports:

Fannie Mae issued its projections for the coming year — and predicted that housing sales will jump by 11 percent — even in the face of a slow recovery for the economy as a whole.

A few days ago, unemployment figures were reported down for the week. Now one week doesn’t make a trend, but it makes for a lot of talk in the media. Maybe it’s an anomaly, but maybe it’s the beginning of the end of this economic recession that we’ve all been living through.

We seen housing prices begin to stabilize over the past few months with prices in Miami actually up slightly.

What’s it all mean?

I’m not going to predict exactly when we will see a turn around in the economy and improved home sales. I look at it a little differently. The economy will turn around and home sales will rebound to traditional levels. It’s coming, but we won’t know when until it has actually happened. Recessions are like that. The end is called months after it actually happens.

Daytona Beach Real Estate Sales

Now Daytona Beach real estate sales have reached the level of about where they were before the run up to the housing bubble started. In the year 2000, 3671 properties were sold through the Daytona Beach MLS. Last year 2900 were sold and in 2007, 3047 were sold. As of today, 3617 homes and condos have been sold in 2009. A 10-11% increase next year is where we would likely have been without the bubble. In other words, based on year 2000 sales figures, we could expect to be at about 4000-4200 property sales through the Daytona Beach board. Not exact science, but the point is, we are probably approaching a sales level that will be pretty stable in the years to come.

We still have tons of inventory with 5375 residential properties for sale, but at November’s sales rate of 404 properties sold, that’s only 13.3 months, down from 29 months at the end of last year.

So, in Daytona Beach, if the current trend continues, and that’s a big if, we are quickly approaching a stable market. A stable market, or balanced market, means that buyer’s advantage will be less and there will be a lot of competition for well-priced properties. We are seeing that now with ocean front condos and some homes under $200,000.

Is it Time to Act?

If it’s not, it’s getting closer. The window is not closed, but it may very well be closing. Keep an eye on all the market news. Where? Well, here of course.

New Daytona Beach Real Estate Inventory Analysis Report Established

New Inventory Analysis of Daytona Beach Real Estate Established

The new Monthly Daytona Beach Real Estate Inventory Analysis Report has been created at www.lynnbyrne.com.

We created this report because inventory, expressed in months based on current sales, is one of the key indicators of the strength of the market. The numbers are telling us that we are in a big time buyer’s market, but that inventory is much higher in the above $300,000 price range for both condos and houses.

Houses are selling at a 4+ to 1 rate over condos and condo inventory is 62.4% higher than the inventory in months for houses. So houses are selling much better than condos and houses and condos in the lower price ranges are selling better than higher priced homes.

You can get all the details by viewing the inventory analysis report. You can also check out all our reports by going to Daytona Beach Real Estate Market Reports.

Daytona Beach Real Estate Sales and Market Report August 2008

Daytona Beach Property Sales Down Slightly for August 2008

In July, Daytona Beach real estate posted the highest sales level since September 2006. In August, we dropped slightly, but still ended with a good month. 277 homes and condos were sold in the Daytona Beach MLS during August, down from 299 properties in July, or 7.4%. From the low point of the year, in January, sales are up 68.9%.

Here’s a chart showing home and condo sales this year:

Month

Sale

Month +/-

Year +/-

January

164

February

222

35.4%

35.4%

March

218

-1.8%

32.9%

April

277

27.1%

68.9%

May

287

3.6%

75%

June

259

-9.8%%

56.7%

July

299

15.4%

82.3%

August

277

-7.4%

68.9%

Total

1730

The solid sales levels in August are a good sign. We have reached a new level that you can see in the chart below. We are banding between 250 and 299 property sales per month. We reached that level in April and have held it since. We will look to this chart monthly. We believe that any significant breakouts from these bands will signal a market change.

2008 Daytona Beach Real Estate Sales Chart

Median prices continue to swing wildly, with August median prices at $164,000, down from $185,000 in July. As you’ll see when we look at sales for different price ranges, there is a very good explanation for this drop.

Residential Daytona Beach property for sale inventory stood at 5906 units at the end of the month. This puts us at back over 20 months of inventory at 21.3 months. Inventory numbers have held at around 6,000 properties for some time now.

The market is still strongest in the under $200,000 price range at 64.9% of sales, with 45.8% in the $100,000 to $199,999 price range. Homes sold under $300,000 account for 81% of all sales. The higher price ranges are not selling at the same pace and are dragging the inventory in months figures down. Under $200,000 months of inventory is under 15 months.

Price Range

Number Sold

Percentage of Total

Last Month

Less than $100,000

53

19.1%

14.3

$100,000 – $199,999

127

45.8%

41.5%

$200,000 – $299,999

46

16.6%

25.8%

$300,000 – $399,999

25

9.0%

7.8%

$400,000 – $999,999

24

8.7

8.7%

Overs $1,000,000

2

<1.0%

1.7%

The average price dropped from $239,454 in July to $217,454 in August. The average price varies month to month and is down this month, but was influenced by only two sales over $1,000,000 and a drop in homes sold in the $200,000 to $300,000 range from 25.8% of sales to 16.6% of sales. This drop is what pushed the median price and average price down for the month. The median means that 1/2 of the homes sold below $164,000 and 1/2 sold above that point. All of the drop in sales for the month can be attributed to the drop in sale in the $200K-$300K price range from 77 properties to 46 properties, or 29 fewer. Total sales dropped only 22 properties, so there it is.

What does this mean? One month doesn’t tell the full story. It will take a few months to know if this is a market shift or a one month fluke. Home sales priced above $300,000 held steady and below $200,000 jumped from 168 to 180 properties, up to 64.9% of all homes and condos sold.

Above the $300,000 price point, buyers and sellers are still having trouble reaching agreement on value. Even with the lower sales between $200,000 and $300,000, homes above the $300,000 represent only 18.5% of sales. In July it was 18.2%. Sales are still being supported by lower price home sales with weakness in the higher price ranges.

The best way to look at all this is to check out the Daytona Beach Real Estate Sales Chart. The chart shows the past 20 months of sales and average home prices. In this case, we believe a picture is worth thousands of words.

What’s the affect for Daytona Beach Homes for Sale?

With sales banding between 250 and 300 properties per month, we need to pay attention to any shifts away from those bands, either up or down. We are approaching the sales levels we saw before the speculators moved into the market. We still have high inventory levels that will take a long time to sell, but we are at the lowest levels of the year and we’ve seen a 15% drop in inventory. It’s still a buyer’s market, but we believe the window is beginning to close. It will still take some time, but the tide may be turning.

Action to Take Now

Sales of Daytona Beach homes are influenced by a lot of complicated factors, but we with another month of relatively solid sales shows that the market is fundamentally strong. Our prices are still lower than many areas in Florida, especially for beachside communities. People are still concerned about dropping home prices but more buyers are entering the market and making offers. Many of these offers are very low and not being accepted, but there is a lot of activity in the market. There’s still a lot of uncertainly, but more people are taking advantage of the market and buying.

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

1. Sales Numbers – if sales go above 300, we believe that will signal a return to a more normal market and stable prices.

2. Mortgage Rates – mortgage rates are up since May, but have dropped for the past few weeks. Check out our weekly market report for weekly updates on mortgage rates.

3. Inventory Levels – inventory levels are holding steady.

Where can you get this information? On my Daytona Beach Real Estate main site. In addition to these monthly reports on the blog, we publish weekly sales numbers, mortgage rates and inventory levels. You can see the current weekly Market Report updated every Monday.

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. We just updated our long-term real estate market analysis at Daytona Beach Real Estate Market Analysis at my main web site. It’s worth a look.

Daytona Beach Real Estate Market Reports

Daytona Beach Real Estate Homes and Condos Reports

We regularly publish real estate market reports because of the current changing state of the Daytona Beach market. Both home buyers and sellers need current information and we provide reports on a weekly and monthly basis. We also provide updates to call out event such as mortgage rate increases.

We’ve created this page to make it easier to locate the report that suits your needs best. The pages are located both here on the Daytona Beach real estate blog and on my Daytona Beach and Ormond Beach real estate website, www.lynnbyrne.com.

Please let us know if there are other reports or information you would like to see. Just send me a message. You can always call and ask me questions as well.

Monthy Sales Analysis with Chart

Daytona Beach Real Estate Market Analysis
The graph shows average sales and properties sales beginning in January 2007. A picture is worth a lot of words.

Weekly Real Estate Report

Daytona Beach Real Estate Weekly Market Report
The weekly market report covers homes sold, weekly mortgage rates, home inventories along with short analysis of changes and conditions.

Monthly Real Estate Reports

Daytona Beach Real Estate Market Report July 2008
Sales in July were up 15.4% over June and at the highest level since September 2006.

Daytona Florida Real Estate Market Report June 2008
Sales were about 10% lower in June than in May, but 2nd quarter sales were up 36% over the 1st quarter.

Daytona Beach Real Estate Sales Up Again in May 2008
Sales were up slightly over April (2.9%) holding the big gains from April.

Daytona Beach Real Estate Market Report April 2008
April sales were 27% over March. This is the month where the market began coming out of it’s funk.

Daytona Beach Real Estate Market Report March 2008
March sales dipped slightly over February, but held the gains over January

Daytona Beach Real Estate Market Report – February 2008
Our first monthly report where February sales were up 35% over a dismal January.

Other Sources

If you are looking for national information on real estate markets, visit the National Association of Realtors. CNN Money real estate section also provides a lot of information and advice.

Daytona Beach Real Estate Market Report July 2008

Daytona Beach Property Sales Up 15.4% for July 2008

Daytona Beach real estate posted the highest sales level since September 2006 and were up 15.4% over June. 299 homes and condos were sold in the Daytona Beach MLS during July, up from 259 properties in June. From the low point of the year, sales are up 82.3%.

Here’s a chart showing home and condo sales this year:

Month

Sale

Month +/-

Year +/-

January

164

February

222

35.4%

35.4%

March

218

-1.8%

32.9%

April

277

27.1%

68.9%

May

287

3.6%

75%

June

259

-9.8%%

56.7%

July

299

15.4%

82.3%

Total

1730

The higher sales in July are an extremely positive sign. Further, median prices rose to $185,000 from $175,000 in May and June.

Residential Daytona Beach property for sale stood at 5951 units at the end of the month. This puts us at under 20 months of inventory for the first time this year. This is another good sign.

The market is still strongest in the under $200,000 price range at 56.2% of sales, with 41.5% in the $100,000 to $199,999 price range. Homes sold under $300,000 account for 81% of all sales. The higher price ranges are not selling at the same pace and are dragging the inventory in months figures down. Under $200,000 months of inventory is under 15 months.

Price Range

Number Sold

Percentage of Total

Last Month

Less than $100,000

44

14.7%

14.3

$100,000 – $199,999

124

41.5%

44.4%

$200,000 – $299,999

77

25.8%

20.1%

$300,000 – $399,999

23

7.8%

12.4%

$400,000 – $999,999

26

8.7

7.7%

Overs $1,000,000

5

1.7%

1.2%

The average price increased from $217,469 to $239,484. The average price varies month to month and is up this month, but was influenced by five sales over $1,000,000. What we conclude from these numbers is that above the $300,000 price point, buyers and sellers are still having trouble reaching agreement on value. Sales are still being supported by lower price home sales with weakness in the higher price ranges.

The best way to look at all this is to check out the Daytona Beach Real Estate Sales Chart. The chart shows the past 19 months of sales and average home prices. In this case, we believe a picture is worth thousands of words.

What’s the affect for Daytona Beach Homes for Sale?

With sales at the highest level in 22 months, we need to take notice. Sales have been increasing at a fairly steady pace since January. Sales are up 82.3% since January and that’s a big jump. We are approaching the sales levels we saw before the speculators moved into the market. We still have high inventory levels that will take a long time to sell, but we are at the lowest levels of the year and we’ve seen a 15% drop in inventory. It’s still a buyer’s market, but we believe the window is beginning to close. It will still take some time, but the tide may be turning.

Action to Take Now

Daytona Beach Homes for Sale are influenced by a lot of complicated factors, but we believe that the market is fundamenthally strong. We are still low priced compared to many areas in Florida, especially for beachside communities. People are still concerned about dropping home values and there have been a lot more buyers walking away from contracts than I’ve ever seen. There’s a lot of uncertainly, but more people are taking advantage of the market and buying.

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

1. Sales Numbers – sales numbers go hand in hand with prices, both were up in July.

2. Mortgage Rates – mortgage rates are up 1/2 points since May, but dropped for the last two weeks.

3. Inventory Levels – inventory levels are holding steady.

Where can you get this information? On my Daytona Beach Real Estate main site. In addition to these monthly reports on the blog, we publish weekly sales numbers, mortgage rates and inventory levels. You can see the current weekly Market Report updated every Monday.

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. We just updated our long-term real estate market analysis at Daytona Beach Real Estate Market Analysis at my main web site. It’s worth a look.

Daytona Florida Real Estate Market Report June 2008

Daytona Beach Property Sales Down 9.7% for June 2008

Daytona Beach real estate sales lost some ground in June, dropping to 259 residential homes and condos sold and falling 9.7% against May sales of 286 properties. This bucks the recent trend of two months of good sales increases, but is not as bad as it appeared earlier this month.

On June 23rd, we were 28.7% behind the May pace, so there was a significant increase at the end of the month. Of the 259 homes sold, 106 where sold between June 23rd and the end of the month. It will be interesting to see what happens in July.

We are still up over January. Here’s a chart showing home and condo sales this year:

Month

Sale

Month +/-

Year +/-

January

164

February

222

35.4%

35.4%

March

218

-1.8%

32.9%

April

277

27.1%

68.9%

May

287

3.6%

75%

June

259

-9.8%%

56.7%

Total

1427

[Read more…]

Update on June 2008 Daytona Beach Florida Real Estate Sales

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.

Have Daytona Beach Homes Prices Reached Bottom?

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.