Is it 2001 or 2008 for Daytona Beach Home Prices
OK, this post needs to be written. I’ve heard several times now that buyers should offer 2001 prices for existing Daytona Beach real estate. I know of people who are making offers in this price range. I don’t know of anyone who has had such an offer accepted.
Hey, that’s a challenge, if you have paid 2001 prices for a home or condo in Daytona Beach, let me know. You can post a comment or send me a note and I’ll publish it. Give me enough information so it can be verified (address will work).
Zillow.com just published information that says, median prices in Daytona Beach, Deltona and Ormond Beach (and everywhere in between) have fallen to same level as the 3rd quarter of 2004. That may not seem like it’s too far from 2001, but in percentage terms, we would need to have dropped close to 70% from the peak to get back to 2001. That hasn’t happened. According to Zillow, we’ve dropped less than 28.4%.
Please note and remember that these numbers are estimates. They are the best attempt to come up with meaningful information from a bunch of data that doesn’t lend itself well to the task.
Even so, let’s work with Zillows data. Do you really believe that prices will fall 70% from the peak? If you bought your home in 2003 how would you have fared? Pretty well, for the Daytona Beach area real estate. Even after the drop, you will still have an average return of 5.0% annually. That’s a higher than inflation, but not really that high. If you bought 10 years ago, it’s much higher.
That’s an important number for me. When we are at 5% annually, we are getting close to the no growth inflation rate of return for Daytona Beach condos and homes. Can we drop further? Of course, but at some point we are going to reach a fundamental bottom. When that happens, I believe there will a bounce back up. Not double digit, but above the inflation rate.
If you are a short term investor, good luck. If you are a long term investor or buying your own home, you really need to be looking for those properties now. Our local market has shown volatility going up and coming down. I believe that volatility will return in the form of appreciation better than the national average – when the market stabilizes.
I’m not going to say we are at the bottom, but every day we are closer. Call me to discuss how you can purchase Daytona Beach property that will position you for the best future appreciation.