Daytona Beach Florida Real Estate Market Report and Analysis for March 2008

The numbers are in for March and there are no surprises and that’s good. The Daytona Beach Real Estate market is not getting worse, and that’s great! Homes for sale in Daytona Beach, Ormond, Port Orange and surrounding communities remain plentiful with a total of 6358 residential properties for sale in the Daytona Area Assocation of Realtors MLS. This number is down from January and February, but still very high compared to the number of sales.

217 Residential properties sold in March. January sales were 164 and in February there were 221 properties sold. Theses numbers show that despite the negative economic data that is hitting us every day, we are holding sales at a consistent level. It looks like January was an aberration at this point. It may have signaled the low point for us.

People continue to buy Daytona Beach real estate in the under $200,000 price point. Of the 217 sales reported, 119 were sold at below $200,000. The average sales price for March was above $245,000. The average price is above the $237,000 reported in February, but below the $257,000 reported in January.

We are, of course, all interested in when the market will bottom. Here are some numbers to consider. Median (half above/half below) sales prices for 2007 were $200,000, but the last quarter of 2007 showed a median sales price of $192,875. In March, the median sales price for Daytona Beach area homes was $185,000. For the past six months, the median sales price was $188,500.

What does this tell us about local markets? It seems to indicate that we are seeing two trends. 1) Over 1/2 of Daytona Beach area homes sold are sold at less than $200,000, and, 2) the median sales price for the past six months has been fairly stable. The number of unit sold in the past six months is 1289 for an average of 214 units per month.

These numbers show that we have hit a plateau. Is it the bottom of this market cycle? While I hope so, I can’t be sure. This doesn’t mean much for individuals sellers. There is still a lot of inventory on the market. Inventory levels of Daytona Beach homes for sale are at very high levels. There are still years of inventory on the market, especially above the $200,000 price point.

For Daytona Beach home buyers, the story is different. The market will start to change and the amount of home you can get in your price range will begin to erode. I read a short article in the magazine, The Futurist, yesterday where a study was cited showing that the US is the strongest economy in the world. We have the best infrastructure for economic stability and growth. We are going through a period of adjustment, but it won’t last long. US companies will not sit on their cash, because they can’t. They must invest to stay competitive and they will.

So the market will come back and we may have seen the bottom. It’s a matter of timing. The numbers for the past six months show that we are at a fairly stable point for a few critical factors. For the Daytona Beach condo and homes market, the number of units sold is relatively stable and the median sales price is relatively stable. There are no guarantees, but there is hope.

Homes buyers should pay close attention to what happens in the next few months. With all the bad news we have received lately with oil and gas prices and unemployment figures, we may be in for a long summer. On the other hand, the stock market is staying over 12,000 for the DJI and seems to be pointing to more stability than the news media is reporting.

We issue the Daytona Beach Real Estate Market Report every month based on sales numbers that we see and key economic trends. We make no guarantees, but provide this information for your consideration. It should be useful if you are considering selling or buying a home in our area. Please call me at 386-566-7503 if you have any questions. There is additional real estate market analysis at Daytona Beach Real Estate Market Analysis at my main web site. It’s worth a look.

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