Daytona Beach Real Estate April 2011 Sales Analysis

April 2011 Daytona Beach Real Estate Analysis Published

Are Daytona Beach homes and condo prices finally at the bottom? Are sales holding at their high levels? In what price range are the highest sales?

We’ve just completed our analysis for the month of April and our take on the current market. To get the full report, go here –> Daytona Beach Real Estate April 2011 Sales Report.

The quick take is that sales are up slightly over last year and big-time over 2009. Median and average sales prices have been steady within the current range for about a year. Home inventories are down over 25% since September 2008 and sales are up about 64% since then. Current months of inventory is at 10 months. In September 2008, the months of inventory was at 21.6 months.

While we can’t say that prices have hit bottom, we can say that we are near. That assumes, of course, that there are no catastrophic economic problems.

The numbers are all trending in the right direction and I’m seeing that in the market. Home and condo sales under $200,000 account for 78.7% of all residential sales and sales under $300,000 account for 90.4%. That mean that there is a huge gap in sales between lower priced and higher priced homes. The market might be considered hot for well-priced homes under $200,000 and cold for home above $300,000.

It’s important to keep in mind when thinking about real estate prices, that we remember that every sales is the result of negotiation between a buyer and a seller. The numbers reported in the Daytona Beach MLS are useful for guidance, but your skills in negotiating and choosing an agent to find the best value are important. When working with an agent, make sure to select someone who is active in the market and closing. With short sales and foreclosures, you need someone who is working with lenders every day and knows the complexity of those negotiations.

Please call me to discuss your needs. I’m available at 386-566-7503.

Some Thoughts on the Daytona Beach Real Estate Market

A Few Thoughts About the Current Daytona Beach Market

I was looking through the MLS today at some of the Daytona Beach real estate market numbers. I found a few interesting things – cash is king; 25% of homes and condos sold were on the market for 30 days or less; and August sales will be higher than July.

Cash is King

Well over 50% of home and condo sales in Daytona Beach are bought with cash. With a few days left in August, 58.2% of homes purchased this month so far were paid for with cash. This is very close to the percentage in July. Conventional loans account for only 27%. This tells me two things:

  • There’s a lot of cash investors out there
  • Mortgage loans are still difficult to obtain for many people

Aggressively Priced Homes and Condos Sell Quickly

There are 5188 homes and condos on the market as of this morning, but so far in August 24.8% of properties sold were on the market for 30 days or less and 44% have been on the market for less than 60 days.

These numbers tell me that aggressively price homes and condos are selling quickly meaning that there is a hot market for these properties. Yes, foreclosures are influencing these numbers, but they don’t account for all sales. Short sales are generally not in these numbers either. Although many banks are getting better at turning around short sales offers, most closings are taking over 60 days.

If a home is priced to sell in this market, it will sell.

August Sales Will Surpass July

I am 99.9999% that August sales will surpass July. As of this morning, with two big closing days left in the month, 314 homes and condo sales have been recorded in the Daytona Beach MLS. July sales came in at 330 properties. Many closing take place on that last day of the month, so it’s a slam dunk that August sales will be higher.

I’m involved in selling Daytona Beach, Port and Ormond Beach homes and condos everyday. When I look at numbers like I did today, I see things that can be useful for buyers and sellers. This is a sampling. If you would like to talk about the market, give me a call at 386-566-7503. I’m happy to answer questions about the general market and what’s available.

Federal Reserve Chairman Predicts Home Sales Spike

Federal Reserve Chairman Ben Bernanke Talks About Home Sales

Kenneth Harvey at Realty Times reports on a speech that Federal Reserve Chairman Ben Bernanke gave in New York a couple of weeks ago. Mr. Bernanke said, “Housing in the coming year is going to be a relative bright spot – a helpful driver of national economic growth, rather than the wet blanket it’s been for the past couple of years.”

Can you believe it. Housing that has been a weight around the neck of the economy, could actually stimulate the economy next year.

Mr. Harvey also reports:

Fannie Mae issued its projections for the coming year — and predicted that housing sales will jump by 11 percent — even in the face of a slow recovery for the economy as a whole.

A few days ago, unemployment figures were reported down for the week. Now one week doesn’t make a trend, but it makes for a lot of talk in the media. Maybe it’s an anomaly, but maybe it’s the beginning of the end of this economic recession that we’ve all been living through.

We seen housing prices begin to stabilize over the past few months with prices in Miami actually up slightly.

What’s it all mean?

I’m not going to predict exactly when we will see a turn around in the economy and improved home sales. I look at it a little differently. The economy will turn around and home sales will rebound to traditional levels. It’s coming, but we won’t know when until it has actually happened. Recessions are like that. The end is called months after it actually happens.

Daytona Beach Real Estate Sales

Now Daytona Beach real estate sales have reached the level of about where they were before the run up to the housing bubble started. In the year 2000, 3671 properties were sold through the Daytona Beach MLS. Last year 2900 were sold and in 2007, 3047 were sold. As of today, 3617 homes and condos have been sold in 2009. A 10-11% increase next year is where we would likely have been without the bubble. In other words, based on year 2000 sales figures, we could expect to be at about 4000-4200 property sales through the Daytona Beach board. Not exact science, but the point is, we are probably approaching a sales level that will be pretty stable in the years to come.

We still have tons of inventory with 5375 residential properties for sale, but at November’s sales rate of 404 properties sold, that’s only 13.3 months, down from 29 months at the end of last year.

So, in Daytona Beach, if the current trend continues, and that’s a big if, we are quickly approaching a stable market. A stable market, or balanced market, means that buyer’s advantage will be less and there will be a lot of competition for well-priced properties. We are seeing that now with ocean front condos and some homes under $200,000.

Is it Time to Act?

If it’s not, it’s getting closer. The window is not closed, but it may very well be closing. Keep an eye on all the market news. Where? Well, here of course.

July 2009 Daytona Beach Home Sales Best in Years

Daytona Beach Homes Sales Up 25.2% in July

377 Daytona Beach Homes and Condos were sold through the Daytona Beach MLS in July 2009. That’s 76 more than last July and the highest sales level since June 2006 when 401 properties sold.

What July Home Sales in Daytona Beach Tell Us

Simply – higher sales tell us that more people believe that housing in the Daytona Beach area is priced right. It doesn’t mean that home prices have stopped declining, it means that more people believe that they are near bottom. A lot people are on the sidelines speculating what’s going to happen with prices. These folks are voting with their wallets.

I’m very busy and I’m selling properties. It’s interesting to note the difference between buyers now and in June 2006. That was just at the end of the bubble. At the height of the bubble, buyers were in a frenzy – concerned that if they didn’t buy now, they would lose out.

Buyers now are different. They are generally very savvy and conservative. They are selective. They can afford to be. There are over 5500 homes and condos on the Daytona Beach market through the MLS. They also have the means to buy a home – cash or a financial position to get a mortgage. There is no frenzy – it’s measured, intelligent buying and investing.

What’s Selling?

Sales by price are following the same pattern we’ve seen for almost two years now.

Under $100,000 = 119 (31.6%)

$100,000-$200,000 = 164 (43.5%)

$200,000-$300,000 = 57 (15.1%)

$300,000-$500,000 = 30 (8%)

Above $500,000 = 7 (1.9%)

Sales below $200,000 dominate the market. What can you get for under $200,000. The choices are tremendous. Condos, Homes, Duplexes, Beachside, Mainland, Gated Communites, Golf Course Communities and more. You can go here to search Daytona Beach homes and condos and see what’s available. Better yet, call me at 386-566-7503 and I run a customized search based on your criteria. I have a knack for finding people just what they’re looking for.

To get a quick read on Daytona Beach homes for the first half of the year, check out First Half 2009 Daytona Beach Home Sales Up.

Daytona Beach Real Estate Market Update – July 24, 2009

Quick Daytona Beach Real Estate Market Update

It’s been awhile since I’ve posted, but I should be back on a normal schedule now. I’ve been very busy with clients for the entire year and that continues into next month with plenty of out of town clients coming in to see properties. I sure hope it doesn’t stop there.

Sales

Sales continue strong with 329 properties sold through the Daytona Beach MLS last month. As of today, over 250 properties have sold and we still have over a week to go. This year is very much ahead of last year in total sales. Through the end of June, 1735 Daytona Beach homes and condos were sold. Last year during the same period, 1433 homes and condos sold. This is a positive trend.

First Time Home Buyers

The clock is ticking. The $8,000 First Time Home Buyers Credit expires on December 1. If you have been waiting, the time is now. Here’s why. It is taking a looooong time for banks to respond on short sales – sometimes months. If you are financing, the process can consume a long time. For our purposes let’s say it will take 60-90 days to close once you make an offer. If it takes another month to find the right properties, we are now right up against the December 1 deadline.

If you are eligble for this credit (you haven’t owned at home in the past three years), now is the time to save a lot of money. I urge you to call me now to be safe.

Service

I work with my son David and I think we make a good pair. David has over five years experience as a Realtor® and knows the ins and outs of short sales and foreclosures. We work together to provide you top level service. David can be reached as 386-566-4169. As always, you can reach me at 386-566-7503 for no pressure, no hassle service.

April Daytona Beach Home Sales Highest Since July 2006

April 2009 Daytona Beach Homes Sales

It was the end of the real estate bubble in Daytona Beach. 343 Homes and condos were sold in July 2006. August and September of that year saw sales of 306 properties. Since then, Daytona Beach real estate sales have been above 300 only once – in August of last year.

Homes sales recorded in the Daytona Beach MLS for April were 308 condos and homes. The highest since the bubble burst in July of 2006. And these are preliminary numbers taken late tonight. We may see that number rise a bit more when all sales have been recorded.

April is the beginning of the Summer sales season. Last year in April, 278 properties were sold. As we sit now, we’re 10.8% highers than last April and 6.6% higher than last month. For the year, sales are 19.5% higher than last year.

We will be issuing a full Daytona Beach real estate monthly report for April during the next week. We will also issue a full report on sales of Daytona Beach Condos.

The Daytona Beach MLS includes Daytona, Ormond Beach, Ponce Inlet, Port Orange, Holly Hill, South Daytona, Daytona Beach Shores and Ormond by the Sea real estate.

Another Voice – Is Now the Time to Buy Daytona Beach Real Estate

News Journal Asks Is Now Time to Buy Daytona Beach Real Estate?

Bob Koslow penned a front page article for the Daytona Beach News Journal this morning titled Housing Market – Is Now Time to Buy? As we’ve been reporting, sales in the Daytona Beach MLS are up 24.3% for the first quarter over 2008. Mr. Koslow reports that for Volusia and Flagler counties combined, sales are up 19% in March and have increased for four consecutive months.

Have We Reached Bottom?

The burning question is still – have we reached bottom? Unfortunately, the nature of price reversals is that we only know afterward. No one knows if we have hit bottom. The Volusia County Property Appraiser is quoted as saying,

The stars are aligning for the market crash to be ending. It’s already ended in DeBary but not yet in Deltona and East Volusia.

The question is still when. In the meantime will prices stop falling?

A Different Perspective

We don’t know if we are at the bottom of the Daytona Beach real etate market. We don’t know if prices have stopped falling. What we do know is that tremendous bargains come on to the market. We also know that more people believe they are getting good value for their money and buying Daytona Beach homes and condos. Many more are looking and trying to find a bargain. Overall prices don’t matter as much as the price you will pay for a property. It’s your deal that matters, not all the others.

Here are my personal experiences that indicate market strength:

  • My website traffic at www.lynnbyrne.com is triple last year’s rate and double from November
  • Many buyers have selected me to work with them. Last year in the first quarter, there were a few buyers here and there. This year, I am showing property nearly every day.
  • I am writing contracts everyday
  • When an aggressively priced property comes on the market, there is now competition for that property. Bank owned, or REO properties in Daytona Beach, have seen multiple offers with the bank giving a deadline for submission. I know it’s true because my clients don’t win every bid.
  • Weekends are once again for showings. People are coming to Daytona Beach for the weekend just to see properties. Most are making offers.

My clients are making a lot of offers. Some are accepted and some are not. Buyers in general are looking for a bargain and their offers reflect that. That’s a good thing. There is nothing wrong with your offer being rejected. It’s the price that you’re willing to pay and if you can’t come to terms with the seller, whether an individual or a bank, you move on.

To get the bargains that so many are seeking, patience is needed. I have worked with people for over a year before they had an offer accepted. Now that’s a patient person, but he stayed with it until he got the perfect home for him and his family.

Bargains are out there and it’s foolish to pay more than necessary. If you are looking to work with someone who is in the middle of this market everyday, give me a call today at 386-566-7503 or 888-519-9579.

Daytona Beach Condo Sales Up for March 2009

Daytona Beach Condo Sales Up Slightly in March

Sales of Daytona Beach Condos were up from 54 units in February to 61 units in March.  Total home and condos sales recorded in the Daytona Beach MLS were 288 properties, up from 249 properties in February.

A recent rule of thumb is that one condo will sell for every four houses sold. That’s pretty close to what we saw in March with condos accounting for 21.2% of sales.

Sales in the $200,000 to $400,000 price range were up significantly. In March 20 condos were sold in that price range, while 21 were sold in January and February combined. This figure bears watching, as it is the highest number of sales in this price range since July of last year. One month doesn’t make a trend, but there are tremendous bargains in this price range and people may be beginning to take advantage of them.

Visit the Daytona Beach Condos Monthly Sale Report for complete information on condo sales going back to the beginning of 2008.

Daytona Beach Real Estate – 3 Quick Notes

A Few Quick Notes on Daytona Beach Real Estate

We just published our Weekly Daytona Beach Real Estate Report and a few quick notes came from our analysis this week:

  1. Interest rates were up over last week. It was a small increase, but we may be seeing the bottom of the rates. If this is true, buyers will need to act very soon to take advantage of the lowest rate in decades.
  2. Sales are ahead of last year at the same point. Yes, we’re only a few weeks into the new year, but we are about 24% ahead of January at this time last year. Now, January of last year was the worst month of the year, when only 164 properties were sold through the Daytona Beach MLS.
  3. Home inventories have not increased much over the beginning of the year when we saw a drop of about 500 homes and condos from the inventory. The beginning of the year showed 5,656 properties on the market, and as of a few minutes ago, we were at 5,716. Let’s see if that holds.

Inquiries from buyers are up from web traffic, so I’m pretty busy, but I have a good support staff and we’re ready to help when you need it. Call us at 386-566-7503 when you’re ready.

Daytona Beach Homes – Annual Sales 2000 to 2008

Daytona Beach Real Estate Annual Sales 2000 to 2008

Total sales of Daytona Beach homes and condos from the Daytona Beach MLS were 2900 in 2008. It will come as no surprise that this is the lowest sales level this decade. It was not a great year for home and condo sales. Inventories at the end of the year were just over 5600 properties and many were taken off the market over the course of the year.

We hear a lot of talk about how far sales have fallen. I believe it’s important to put it into perspective. So here goes:

  • 2008 sales were 4.8% lower than 2007 sales
  • 2008 sales were 23.9% lower than 2006 sales
  • 2008 sales were 52.8% lower than the peak year of 2005 sales

Looking at the chart below, we can see that the big drop happened from 2005 to 2007 and 2008 was a year where we basically held 2007 levels.  Considering market conditions and the state of the economy that’s pretty amazing.

Daytona Beach Real Estate Sales Chart 2000-2008

I’m not attempting to candy-coat the current conditions. We are in a horrible market for sellers and a great market for buyers willing to accept some risk. Prices dropped in 2008 by over 30%, but sales stayed relatively stable. On an annual basis, we seem to have found a bottom. 2009 will likely test that bottom, but if we see some economic recovery, there is a lot of pent-up demand for homes and condos in Daytona Beach.

The full sales numbers for 2000 to 2008 are presented below. I believe this gives an idea of where the market might recover to in the long run. After the dust settles, I believe we will sell between 3600 and 4000 homes annually. That’s a 10-20% increase of 2008 levels. I see that as normal growth as the economy recovers. I don’t see a return to the speculation fueled number of 6000+ during the boom. We may see a mini-boom in 2009 or 2010, but only if mortgage lenders are willing to work with borrowers on mortgage modification. Otherwise, there’s about five to eight million more homes in risk of foreclosure between now and 2011. Part of the second release of the $700 billion in bailout funds is $50 to $100 billion to help homeowners. We’ll see how that works. At any rate, 2009 should be an interesting year.

Year Home Sales
2000 3671
2001 4035
2002 4739
2003 5610
2004 5986
2005 6145
2006 3813
2007 3947
2008 2900