Daytona Beach Real Estate Annual Sales 2000 to 2008

Total sales of Daytona Beach homes and condos from the Daytona Beach MLS were 2900 in 2008. It will come as no surprise that this is the lowest sales level this decade. It was not a great year for home and condo sales. Inventories at the end of the year were just over 5600 properties and many were taken off the market over the course of the year.

We hear a lot of talk about how far sales have fallen. I believe it’s important to put it into perspective. So here goes:

• 2008 sales were 4.8% lower than 2007 sales
• 2008 sales were 23.9% lower than 2006 sales
• 2008 sales were 52.8% lower than the peak year of 2005 sales

Looking at the chart below, we can see that the big drop happened from 2005 to 2007 and 2008 was a year where we basically held 2007 levels.  Considering market conditions and the state of the economy that’s pretty amazing.

I’m not attempting to candy-coat the current conditions. We are in a horrible market for sellers and a great market for buyers willing to accept some risk. Prices dropped in 2008 by over 30%, but sales stayed relatively stable. On an annual basis, we seem to have found a bottom. 2009 will likely test that bottom, but if we see some economic recovery, there is a lot of pent-up demand for homes and condos in Daytona Beach.

The full sales numbers for 2000 to 2008 are presented below. I believe this gives an idea of where the market might recover to in the long run. After the dust settles, I believe we will sell between 3600 and 4000 homes annually. That’s a 10-20% increase of 2008 levels. I see that as normal growth as the economy recovers. I don’t see a return to the speculation fueled number of 6000+ during the boom. We may see a mini-boom in 2009 or 2010, but only if mortgage lenders are willing to work with borrowers on mortgage modification. Otherwise, there’s about five to eight million more homes in risk of foreclosure between now and 2011. Part of the second release of the $700 billion in bailout funds is $50 to $100 billion to help homeowners. We’ll see how that works. At any rate, 2009 should be an interesting year.

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Related posts:

1. Daytona Beach Homes Inventory Analysis November 2008
2. Sales of Daytona Beach Homes Decline in November 2008
3. October 2008 Daytona Beach Homes Monthly Sales Video Report
4. Daytona Beach Homes Preliminary Sales Report for October 2008
5. Update on June 2008 Daytona Beach Florida Real Estate Sales