Will Daytona Beach Homes and Condo Bargains Be Hard to Find?
Reports out of Las Vegas say housing bargains are drying up. Is the same thing happening in Daytona Beach?
A Wall Street Journal story by James R. Hagerty reports housing bargains are tough to come by in Las Vegas for many people. The reason he states is that investors with cash are more desirable to banks. See the full story – Vegas House Bargains Dry Up.
This report doesn’t surprise me at all. Cash buyers are more attractive to banks and lenders for both short sales and foreclosures. The reason is fairly simple, in an ironic twist, the banks know that if a buyer is getting a loan to make the purchase, the deal is not as tight. Too many things can go wrong.
We’ve been seeing this with Daytona homes for sale for some time. Many of my buyers over the past two years have been cash buyers. All of my buyers who financed were pre-approved before making any offers on short sales or foreclosures. Buyers who are not pre-approved will not be considered in nearly all cases when submitting an offer to banks or lenders.
The Las Vegas market is much larger than the Daytona Beach market, but the dynamics are very similar. Both areas have experienced a lot of foreclosures. Investors may find Las Vegas more attractive because of future economic prospects, but we can expect the same investor attention here for the more attractive properties. There will be more money chasing the bargains that bargain property available in Las Vega and our market will get attention when that happens.
To some extent we are seeing investor action here. I’ve sold more than a few properties to investors recently. Most are renting the properties out while they wait for values to rise.
We see more investors coming to the Daytona Beach and Ormond Beach real estate market as the economy improves and prices further stabilize. We are no longer seeing the dramatic price drops we saw over the past two years. When it’s generally recognized that prices have stabilized, more investors will jump.
The point is to understand that there is competition for attractive well-priced properties and that competition will increase in the near future.