Daytona Beach Condos Buyer’s Strategy
With over 30 months of condo inventory, there is more competition among condo sellers than house sellers. Our advice is to negotiate aggressively. You can only do this with sellers who are motivated, so make sure you are dealing with someone who will negotiate. In addition, find two to three properties that you are willing to buy (at the right terms), and move from one to the other. Let the seller’s agent know that you are considering other properties. It will strengthen your negotiating position. You may need a lot of patience, but with this strategy, you can get a great condo at the best price possible.
Why Use This Strategy?
Daytona Beach condos sell at about 25% of single family home sales. Those were the results in April 2008 and those were the results in April 2005. In both months, 3 years apart, condos were 20% of Daytona Beach homes sales. One condo is sold for every four houses. Of course the big difference is in the total sales numbers. In April 2005, 108 condos sold. While in April 2008, 58 condos sold.
That does not mean that the condo market is as healthy as the single family house market. The inventory numbers tell the story. There are 1752 Condos on the market today. With 58 Daytona Beach condos sold in April, that’s 30 months or 2-1/2 years of inventory. There are 4200 houses on the market and 213 Daytona Beach houses sold last month for an inventory level of less than 20 months – not good but better than the condo level.
Part of the reason for the higher inventory number is because we are seeing the highest level of total sales in the under $200,000 market (57% in April), with a median sales price of $180,000. Condos, however, were sold at a median price of $228,000 in April, nearly $50,000 or 27% higher than the house median. Only 22% of condo sales were under $200,000 vs. 57% of houses. The condo market in Daytona Beach is a higher priced market.
That being said, it is interesting to note that even with the difference in median sales prices, the ratio of house sales to condo sales remains at 4 to 1. Simple projection says that in order for condo sales to pick-up, total sales will need to pick-up. This is not a one month fluke. January condo sales were 21% of total sales, and year to date the number is 21%. The condo market will not improve unless the overall market in the Daytona Beach area improves, or, condo prices drop significantly.
Don’t forget to consider Ormond Beach condos, Daytona Beach Shores condos, and Ponce Inlet condos. Many of the buildings are directly on the beach with a few on the Halifax river. The are also lower priced condos available across the road from the beach in Ormond by the Sea.
If you are considering Daytona Beach Condos for your primary home, or as a vacation or second home, now is a good time to take a look at what’s available. You are in a great position to negotiate in this buyer’s market. Find out about your options by giving me a call. Check out Daytona Beach Condos for Under $150,000 for more information.