Daytona Beach Real Estate Weekly Report May 19,2008
The Weekly Daytona Beach Real Estate Report has been issued. The quick summary is that the sales gains of April appear to be holding. In April we saw a 27% jump in Daytona Beach home sales over March. This is a very good sign. In April 277 residential properties in Daytona Beach were sold. At this point in April 151 properties were sold. As of this morning 147 properties were sold in May. (Note: May numbers are understated as sales from last week are still be recorded.)
We believe these numbers will hold based upon increases in inquiries and showings at our office. There appears to be a two to three month lag between increases in activity and increase in sales. This is a totally unscientific statement, but we started seeing increases in activity in February and sales spiked in April.
Daytona Beach Homes - Sales Year to Date
To understand where we are today, let’s look at January. In January, 164 residential properties were sold and the homes inventory stood at 7,000 residential properties giving a inventory to sales ration of 43 months. In April, 277 properties were sold and inventories were below 6300 properties or about 22 months of inventory. The combination of a 10% drop in inventories and a 79% increase in sales from January to April, resulted in a near 50% drop in months of inventory on the market.
Let’s repeat that, since January, months of home and condo inventory on the market in Daytona Beach has dropped nearly 50%. That’s a positive signal. Granted, the market is in no way strong, but it is stronger than the beginning of year. More sellers and buyers are agreeing on the value of a home. Note, that the numbers reported here are from the Daytona Beach MLS and do not include private sales, most auctions sales, and other transactions that are not recorded in the MLS.
Daytona Beach Property - What’s Hot!
So the average selling price has dropped by about 12% and the median selling price has dropped 10% since January and sales have increased by 79%. This does not mean that home values have dropped by that amount! The median dropping 10% means that what is selling, is selling at a lower price. 57% of the homes sold in the area sold at less than $200,000 resulting in the drop in the average sales price. One way to look at it is that home values have dropped, another way is that there are more buyers under $200,000. Another 24% of homes sold in April were in the $200,000-$300,000 range meaning that 81% of homes sold were under $300,000. 8 out of 10 buyers are in the under $300,000 market. If you are selling in that market, you have a much better chance of selling than if you are priced higher.
So, is the trend holding in May? Yes, more so. In May 62% of homes sold to date are below $200,000 and 23% are between $200,000 and $300,000 for a whopping 85% of the market below $300,000. Median price based on these numbers is at $173,000.
Summary
In summary, the market in terms of Daytona Homes sales is holding steady. Homes are selling below $300,000, and inventory has decreased almost 50% since January. We suspect the sales numbers for May will be a little better than April based on month to date. For more information on April Analysis - Daytona Beach Real Estate Market Report April 2008.
Note: Daytona Beach reported information includes homes and condos in Ormond Beach, Port Orange, South Daytona, Ponce Inlet, Holly Hill, Ormond by the Sea and Wilbur by the Sea.
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