Daytona Beach Condos and Homes Inventory is Very High
Here is a quick analysis on the state of Daytona Beach Homes inventory using the sales numbers from November 2008. Months of inventory is the numbers of properties on the market divided by sales. We’ve broken the numbers down by price range because there are big differences between inventory numbers at different price ranges.
| Sales Range | Inventory | Nov. Sales | Months Inventory | % of Sales |
| Under $100,000 | 639 | 49 | 13.0 | 24.1% |
| $100,000 to $199,999 | 1985 | 96 | 20.7 | 47.3% |
| $200,000 to $299,999 | 1282 | 39 | 32.9 | 19.2% |
| $300,000 to $499,999 | 1051 | 14 | 75.1 | 6.9% |
| $500,000 to $999,999 | 676 | 4 | 169.0 | 2.0% |
| Over $1,000,000 | 245 | 1 | 245.0 | 0.5% |
| Totals | 5878 | 203 | 29.0 |
From the chart, we can see that at 29 months of inventory overall, we are in a serious buyer’s market. A buyer’s market is usually defined as over six months of inventory. We are not close to that number in any price range for Daytona Beach condos and houses.
Homes on the market below $200,000 are selling at a much higher rate than other market ranges. The months on inventory above $500,000 is painful to view and should really be looked at in years of inventory. Homes above $300,000 made up less than 10% of sales in November.
To put the Daytona Beach real estate market in perspective, under $300,000 has the best chance of selling with current buyers and under $200,000 makes up over 70% of all sales. Homes and condos between $200,000 and $300,000 make up nearly 20% of sales, but the inventory number, at almost 33 months, is above the 29 month average. Above $300,000 is dismal.
Buyers in today’s market are expecting big bargains. Sellers who are not super aggressive in their pricing will not sell. Short sales and foreclosures are dictating sales prices and there are plenty of these properties in all market ranges for patient buyers.
Declining sales over the past three months have pushed up the inventory in month numbers while the number of properties on the market has held pretty steady at near 6,000, but the action in the lower price ranges has remained consistent.
What do we expect? An eventual turn-around, but it’s going to take a long time for distressed properties to work through the market. It will get better and mid to late 2009 seems to be the consensus at this point. Prices will stabilize and then sales will go through a mini-boom as people realize the best bargains will soon be gone.
However, individual buyers are getting incredible deals. It’s about being in the right place at the right time. If you are interested in discussing the market give me a call at 386-566-7503 or 888-519-9579 and we can chat about your situation.
Note: these numbers are from the Daytona Beach MLS. Not all sales go through the MLS, but these numbers give a solid indication of the market.
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1 Daytona Beach Real Estate Market Report Video - November 2008 | Daytona Beach Real Estate // Dec 14, 2008 at 9:12 am
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