Have Daytona Beach Real Estate Prices Hit Bottom?

Have Daytona Beach Home and Condo Prices Seen the Bottom?

I’ve been looking at the Case-Shiller home price data today and the data seems to be showing that the two Florida areas included in the index are at or near bottom. The index includes Miami and Tampa metro areas. There is no specific listing for Daytona Beach home sales, but I think we are pretty much in line with Miami since we are on the east coast while Tampa sits on the west coast.

During the past twelve months, prices in Miami are up 1.8% while prices in Tampa are down 2.0%. If we average them, we’re pretty much flat. That’s a pretty good indication of where we are in Daytona Beach, Ormond Beach, Port Orange and the surrounding areas.

The Pundits Speak

The National Association of Realtors Chief Economist, Dr. Lawrence Yun, and Zillow chief economist Dr. Stan Humphries, have spoken recently on the market. While they’re not in complete agreement, their message is that home prices will bottom or rise slighly in 2012.

Dr. Yun says, “The housing market has clearly turned the corner… Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses.”

Dr. Humphries said recently, “For people who have been waiting to time their home purchase close to market bottom, it’s time to start shopping… When the bottom will hit will vary by market, and it’s nearly impossible to time a purchase exactly right. But home prices are not the only part of the equation. Buyers also should take into account the possibility that rising mortgage rates could offset any further home value declines that may occur.”

You may be thinking there’s some conflict of interest with these organization predicting a bottoming of prices, but I think it’s important to note that they haven’t made predictions of this sort previously. They are very careful because their predictions will be well publicized and they’ll lose credibility. They err on the side of caution. So when these two chief economists speak and agree, it’s a pretty big deal.

What Now For The Daytona Beach Real Estate Market?

As Dr. Humphries says above, no one can predict the exact bottom. Further, just because we’ve hit bottom doesn’t mean prices are going to leap upward. From the Miami Case-Shiller data, we see that the area hit bottom about six months ago, but there hasn’t been a big jump in prices since then.

Buyers of Daytona Beach homes and Daytona Beach condos who have been on the fence about prices, may want to start looking now. We believe there are plenty of bargains out there and there will be for the short term. Remember all price data reflects averages. Some buyers will get much better deals than others. That’s where we can help. We know the market and what’s selling and can help you get the best price for a property. We also are still working a lot of short sales and that’s where many of the best bargains can be found.

Please give Lynn a call at 386-566-7503 to discuss your options. Check here to –> search all homes and condos for sale in the Daytona Beach area.

Will Daytona Beach Housing Bargains Dry Up

Will Daytona Beach Homes and Condo Bargains Be Hard to Find?

Reports out of Las Vegas say housing bargains are drying up. Is the same thing happening in Daytona Beach?

A Wall Street Journal story by James R. Hagerty reports housing bargains are tough to come by in Las Vegas for many people. The reason he states is that investors with cash are more desirable to banks. See the full story – Vegas House Bargains Dry Up.

This report doesn’t surprise me at all. Cash buyers are more attractive to banks and lenders for both short sales and foreclosures. The reason is fairly simple, in an ironic twist, the banks know that if a buyer is getting a loan to make the purchase, the deal is not as tight. Too many things can go wrong.

We’ve been seeing this with Daytona homes for sale for some time. Many of my buyers over the past two years have been cash buyers. All of my buyers who financed were pre-approved before making any offers on short sales or foreclosures. Buyers who are not pre-approved will not be considered in nearly all cases when submitting an offer to banks or lenders.

The Las Vegas market is much larger than the Daytona Beach market, but the dynamics are very similar. Both areas have experienced a lot of foreclosures. Investors may find Las Vegas more attractive because of future economic prospects, but we can expect the same investor attention here for the more attractive properties. There will be more money chasing the bargains that bargain property available in Las Vega and our market will get attention when that happens.

To some extent we are seeing investor action here. I’ve sold more than a few properties to investors recently. Most are renting the properties out while they wait for values to rise.

What Next?

We see more investors coming to the Daytona Beach and Ormond Beach real estate market as the economy improves and prices further stabilize. We are no longer seeing the dramatic price drops we saw over the past two years. When it’s generally recognized that prices have stabilized, more investors will jump.

The point is to understand that there is competition for attractive well-priced properties and that competition will increase in the near future.

Sales of Daytona Beach Homes Decline in November 2008

Daytona Beach Homes Sales Fall 11.6%

The preliminary numbers are in and sales have fallen again. In October 225 homes and condos in Daytona Beach were sold. In November, 198 home sales have been recorded to date. These are preliminary numbers because a few more sales will be added by Daytona Beach real estate agents over the next few days.

The fall is expected based on seasonal affects (209 homes sold in November of last year) and the lack of mortgage money and the lack of economic confidence.

The trend of homes under $200,000 is accelerating with 71.2% of sales recorded in that price range. Over 90% of Daytona Beach homes sold were sold under $300,000. Only 19 homes sold above $300,000. The top end of the market is nearly dead.

The top market should be boosted when FHA limits rise in January, but we’ll see. Right now it’s dismal for high end properties.

Properties under $200,000 remain stronger, but there was a 9% decline in those numbers in October. Where the market goes from here is based on mortgage money becoming available and buyer’s confidence. Until we have money available from lenders and buyers more willing to buy, we will be in the lower ranges of the market.

The prices we are seeing are based on short sale and foreclosure prices. Until those properties are worked out of the market, “normal” prices will not return. That is going to take a few years. It is a stronger and stronger buyer’s market and the deals are amazing for those who are willing to accept the risk.

In the long term the supply of distressed properties will decline and prices will rebound. People buying now might realize gains of 30-40% within 5-7 years. That’s a pretty good return.

The market is changing fast and if you’re interested in distressed properties we should talk. Nearly all of my sales are now associated with distressed homes and condos and I know the ins and outs of the process. Call me at 386-566-7503 or 888-519-9579 to learn more.

Daytona Beach Homes – Video for Short Sale Sellers

Shorts Sellers Video

This video is the companion video to the Short Sale Buyers video.

The Daytona Beach homes market has been very much affected by dropping home values. In many cases the value of the home or condo has fallen below the amount owed on the mortgage or mortgages. Sellers in this situation cannot sell their homes without spending money out of their own pockets to close.

Many of these properties are headed to foreclosure because, on top of the value being less than the mortgage, the home owner is unable to make the mortgage payments.

There is an alternative to foreclosure for eligible homeowners. It is to the advantage of both the lender and the homeowner to pursue a short sale in many cases. A short sale means that the bank is willing to accept an offer from a new buyer that is less than the mortgage value . The lender saves the cost of foreclosure.

If you are a home owner thinking about selling using a short sale, this is the video you need to watch. It will explain the process and help you determine if you are eligible and if a short sale is right for you.

Please feel free to call me at 386-566-7503 if you have any questions about the short sale process. I’ve completed short sale transactions successfully and I’ve taken training on the process.

Daytona Beach Real Estate Blog 100th Post

Wow! 100 Posts for Daytona Beach Real Estate Blog

It’s hard to believe, but this is our 100th post to the blog. We started in January when Daytona Beach real estate sales were at the lowest point in recent memory. We’ve chronicled the increase in sales as the market begins its recovery. Then in July, we save sales rise to the highest level since September of 2006.

We’ve also evolved a bit. We are not aggressively pursuing the use of video to enhance our service to both buyers and sellers. We have also attempted to focus on what’s important to our site visitors and customers. We have been listening, and people have been telling us they want to know more about short sales and foreclosures.

So, we have put together two videos on short sales. One video for short sale buyers and one video for short sale sellers. We are finishing the final editing on both videos and they will be up within the next 24 hours. We will post the announcement as they become available.

We will continue to provide market news and focus on what’s important to our visitors and customers. If you would like information on something we haven’t covered, just send us a message. I’m always available to answer questions at 386-566-7503.

Thanks to all our site visitors and customers.