Daytona Beach Home Prices over the Last Five Years
The most recent data shows that the average home prices in Daytona Beach in January 2008 is about $165,000 down from about $179,000 in January of 2007. The drop has flattened with a rise since November when we were below $164,000. While I won’t venture to predict whether prices will drop further, I can say that over the past month, we’ve seen a small rise in sales prices.
Over the year, there has been a significant drop, but when we look over five years we see a much better picture. Going back to 2003 the average home price was under $90,000. That means over five years, prices are up over 80%. The question that we can’t answer yet is whether prices are dropping back to levels before speculators went wild. At the end of the bubble, speculators were buying from speculators and driving prices up. When the speculation stopped, prices dropped.
Where do we go from here? We are closer to the bottom and recent number show we may be close. Here’s my best view at this point – prices peaked in early 2006. Since that time, we lost about 12% of market value. During the worst of all possible news and events, we’ve dropped only 12%. This may sound crazy, but considering everything that has happened, a drop of “only” 12% may signal a pretty strong long-term market.
Check back for frequent updates on Daytona Beach real estate market conditions.