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.

September 2009 Sales of Daytona Beach Homes Up 58.7%

Sales of Daytona Beach Homes Up 58.7%

Sales of Daytona Beach homes and condos in September were up 58.7% over last September. Needless to say that’s is a huge increase.

Sales under $200,000 accounted for 72.4% of all sales and sales under $300,000 accounted of 88.6%. No homes were sold over $1,000,000. The 370 homes and condos sold in September fell just short of July’s sales of 375 properties that was the highest in over three years.

Month to month, September sales were 10.4% higher than the 335 sales recorded in August.

What Do The Sales Numbers Say?

The numbers tell us one simple thing about the Daytona Beach real estate market – more people believe that homes and condos are at price right. The numbers don’t tell us anything about reaching a price bottom or whether prices will go up or down. It was recently reported in USA Today that people are finding bargains in the Daytona Beach area and that’s true. It’s hard to believe some of the deals we’re seeing.

Is Now The Right Time to Buy?

Buying or investing in a home is a decision that only you can make. There are no guarantees, but patient buyers will find great deals. Foreclosures and short sales are keeping prices down, but eventually that will runs its course and pressure will begin to mount for prices to rise again. If you are ready to explore the market and discuss options, give me a call at 386-566-7503.

Reported sales are from the Daytona Beach MLS.

Technology and Real Estate – A Look Back

Technology and Real Estate

Twelve years ago when I started selling Daytona Beach real estate I never could have imagined the impact that technology has today on conducting my business. Email was in its infancy, Internet browsers were crude, communication was over dial-up connections and texting was non-existent.

Today, technology shapes the way I do my everyday business. Clients make first contact with me primarily through my website. Many call me directly and many others make inquiries through email. When I first started, listings were printed in big MLS books. Clients got their information through newspaper or magazine ads or by calling a real estate agent who would search through the book.

Today you can search in many places for homes and condos for sale. There are many aggregators who collect national data, but I’m partial to my own site where I provide complete listings for the area. You can search Daytona Beach condos and homes and gets lots of local information and expertise that isn’t available through national aggregators.

Recently, I’ve taken a new step. I’ve been texting for about a year now, but in the past few months it’s become another way of doing business. I communicate with my partner, David, and increasingly with clients using 160 characters or less text messages. Is texting effective? It is for many people and it’s been great with several clients. Texting is great when the question is clear and doesn’t need an immediate or complex response. Since my clients like it, I like it.

Who knows what we be doing 12 years from now and where technology will lead us. I can anticipate 3-D virtual tours of homes or some other tools that will make it seem like you’re there. With Google Maps and other tools, you can check out the neighborhood already. I don’t know what the technological future will be like, but I know I’ll be there with you. You can text me at 386-566-7503 or 3865667603 at txt.att.net (substitue @ for at).

It’s unfortunate that I need to show my text address as “at” instead of @. That’s the downside of technology. This is an attempt to prevent email spammers from “scraping” my text or email address from this post and sending hundreds or thousands of spam messages. I certainly don’t need spam coming to my cell phone. I guess it’s the price we pay for technology.

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.

South Daytona Condo for under $30,000

South Daytona Condo For Sale for $28,900

This is not a misprint. There are no buts… This is a 2 bedroom, 2 bath condo with 1,034 sq. ft.

Bristol Bay South Daytona Condos

South Daytona is located on the mainland across the river from Daytona Beach and Daytona Beach Shores.

Daytona Beach condos prices have dropped, but this unit is a special case. Condos in this building were selling for as much as $150,000 a few years ago. A price drop of over 80%? Hard to believe, but true.

There are other low priced condos as well. If you want a taste of the market, give me a call at 888-519-9579.

For more information on this property, visit South Daytona Condo – Bristol Bay. This is taking the idea of cheap Florida condos to a new level.

Daytona Beach Foreclosures Resources

Daytona Beach Foreclosures Market is Hot

Daytona Beach Foreclosure, Short Sale and REO Resources

Over the past year, we’ve written blog posts and created web pages on foreclosures, short sales and REO opportunities. In February, 45% of all homes sold nationwide were distressed properties in some phase of foreclosure. The rate was even higher in the Daytona Beach area.

We’ve created this post to give a central resource for all those resources that we’ve created. As always, call me aat 888-519-9579 or Email me if you have questions or need information.

Foreclosures

Daytona Beach Foreclosures
Information on the foreclosure process and how to go about buying a foreclosed property.

Do Foreclosures Really Cost $70,000
How much does it cost a bank to foreclose. It’s important to know when you are negotiating before the bank forecloses a property.

Know the Facts About Volusia County Foreclosure Sales
Information from the Volusia County Clerk of Courts on how to go about buying a foreclosure of Daytona Beach, Ormond Beach, Port Orange or New Smyrna Beach foreclosed property.

Buy Foreclosure or Short Sale – Which is Best for Me?
A burning question in today’s market that every buyer should read.

Florida Foreclosed Homes
Cautions about scam artists and other sharks looking to rip you off.

Short Sales

Real Estate Short Sale Can Save You 20 to 40 Percent
Yes, you can save with short sales over the “market price,” but now the competition is heating up.

Daytona Beach Short Sales
Information and videos about short sales in Daytona Beach.

Daytona Beach Short Sales Buyers Video
Video, audio and a PDF file on how to buy a short sale.

Daytona Beach Short Sales Sellers Video
Not every seller is eligible for a short sale. The video explains who is eligible and how to go about the short sale process.

Daytona Beach REO Property

Daytona Beach REO Properties
The first of many pages we will create explaining the advantages and pitfalls of REO properties in Daytona Beach.

Ormond Beach, Port Orange and Daytona Beach foreclosure homes are plentiful, but there are dangers in buying many of these properties. Tax liens, contractor liens and IRS attachments could pop up after you buy the property unless you know what you’re doing. Don’t go it alone, call me today about any home or condo in the Daytona Beach real estate market.

We believe Daytona Beach foreclosure condos and homes in the higher end of the market will be increasing over the coming months. Few sales have occurred with these properties in the last year and many owners will walk away this year. This year will probably be the best year to buy a condo in Daytona Beach in our lifetimes.

March 2009 Daytona Beach Real Estate Up 31.5%

Daytona Beach Real Estate Sales March 2009

Preliminary Report

Daytona Beach real estate sales were up 31.5% in March 2009 over March of the previous year. Preliminary numbers show Daytona Beach MLS sales at 288 homes and condos vs. 219 properties sold last year.

Trends Remain the Same

Sales by price did not change from previous months:

  • Under $100,000 – 33.3% (96)
  • $100,000 to $200,000 – 42.4% (122)
  • $200,000 to $300,000 – 14.6% (42)
  • Over $300,000 – 9.7% (28)

These are preliminary numbers, but they won’t change signficantly. The average home price sold was $159,815 and the median price was $133,500. In February we saw average sold price of $166,845 and a median price of $127,500. Median means one-half of properties sold under the median and one-half above.

Year to Date Sales Up 23%

Sales of Daytona Beach homes and condos are up year to date over 2008 by 140 properties or 23%. Year to date 748 homes and condos sold vs. 608 for the same period last year.

This is all positive news for the Daytona Beach market. Months of inventory has decreased to just over 19 months. At the end of December, we were at 25 months. That’s a significant drop, but still far away from a stable market.

Interest rates are low, there’s an $8,000 tax credit for first time home buyers, and prices have dropped. How long interest rates and prices will remain low is uncertain, and the tax credit expires on December 1. There are even Ormond Beach Condos for sale under $100,000. It looks like we are in window of great opportunity that we may not see again for a long time. If you are interested in homes in our area, call me at 386-566-7503 to discuss your options.

First Time Home Buyers $8,000 Tax Credit Video

First Time Home Buyers $8,000 Tax Credit Video

Good news for the Daytona Beach real estate market. This new tax credit adds the third key to an already attractive buyer’s market. With prices so low, and interest rates so low, and now a possible tax credit, now may be the best time to buy.

As part of the American Recovery and Reinvestment Act of 2009, a provision for a tax credit of up to $8,000 for new home buyers was included, but, it’s not just for new home buyers. If you have not owned your primary residence for the past three years, you are eligible. If you are married, and neither spouse has owned a primary residence in the past three years, you’re eligible.

There are income limits that you can learn about in the video.

Port Orange homes, Ormond Beach homes and condos are priced low and with many foreclosure and short sale properties available, you can get a great deal. I don’t know how long it will last, but we are seeing predictions of anywhere from 10-17 months before the market starts to come back. Call me now to discuss your options.