Daytona Beach Real Estate Market Report July 2008

Daytona Beach Property Sales Up 15.4% for July 2008

Daytona Beach real estate posted the highest sales level since September 2006 and were up 15.4% over June. 299 homes and condos were sold in the Daytona Beach MLS during July, up from 259 properties in June. From the low point of the year, sales are up 82.3%.

Here’s a chart showing home and condo sales this year:

Month

Sale

Month +/-

Year +/-

January

164

February

222

35.4%

35.4%

March

218

-1.8%

32.9%

April

277

27.1%

68.9%

May

287

3.6%

75%

June

259

-9.8%%

56.7%

July

299

15.4%

82.3%

Total

1730

The higher sales in July are an extremely positive sign. Further, median prices rose to $185,000 from $175,000 in May and June.

Residential Daytona Beach property for sale stood at 5951 units at the end of the month. This puts us at under 20 months of inventory for the first time this year. This is another good sign.

The market is still strongest in the under $200,000 price range at 56.2% of sales, with 41.5% in the $100,000 to $199,999 price range. Homes sold under $300,000 account for 81% of all sales. The higher price ranges are not selling at the same pace and are dragging the inventory in months figures down. Under $200,000 months of inventory is under 15 months.

Price Range

Number Sold

Percentage of Total

Last Month

Less than $100,000

44

14.7%

14.3

$100,000 – $199,999

124

41.5%

44.4%

$200,000 – $299,999

77

25.8%

20.1%

$300,000 – $399,999

23

7.8%

12.4%

$400,000 – $999,999

26

8.7

7.7%

Overs $1,000,000

5

1.7%

1.2%

The average price increased from $217,469 to $239,484. The average price varies month to month and is up this month, but was influenced by five sales over $1,000,000. What we conclude from these numbers is that above the $300,000 price point, buyers and sellers are still having trouble reaching agreement on value. Sales are still being supported by lower price home sales with weakness in the higher price ranges.

The best way to look at all this is to check out the Daytona Beach Real Estate Sales Chart. The chart shows the past 19 months of sales and average home prices. In this case, we believe a picture is worth thousands of words.

What’s the affect for Daytona Beach Homes for Sale?

With sales at the highest level in 22 months, we need to take notice. Sales have been increasing at a fairly steady pace since January. Sales are up 82.3% since January and that’s a big jump. We are approaching the sales levels we saw before the speculators moved into the market. We still have high inventory levels that will take a long time to sell, but we are at the lowest levels of the year and we’ve seen a 15% drop in inventory. It’s still a buyer’s market, but we believe the window is beginning to close. It will still take some time, but the tide may be turning.

Action to Take Now

Daytona Beach Homes for Sale are influenced by a lot of complicated factors, but we believe that the market is fundamenthally strong. We are still low priced compared to many areas in Florida, especially for beachside communities. People are still concerned about dropping home values and there have been a lot more buyers walking away from contracts than I’ve ever seen. There’s a lot of uncertainly, but more people are taking advantage of the market and buying.

If you are a buyer planning to make a purchase in the near future, there are a few things to monitor:

1. Sales Numbers – sales numbers go hand in hand with prices, both were up in July.

2. Mortgage Rates – mortgage rates are up 1/2 points since May, but dropped for the last two weeks.

3. Inventory Levels – inventory levels are holding steady.

Where can you get this information? On my Daytona Beach Real Estate main site. In addition to these monthly reports on the blog, we publish weekly sales numbers, mortgage rates and inventory levels. You can see the current weekly Market Report updated every Monday.

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 use. 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. We just updated our long-term 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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