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Daytona Beach Homes Months of Inventory Falls 52.4%

Daytona Beach Homes Months of Inventory Falls 52.4% in 18 Months

In the past 18 months, Daytona Beach Homes and Condos inventory, measured in months on the market, has dropped 52.4%.

We did a detailed analysis of homes inventory in July 2008. So, let’s compare July of 2008 when the market was close to its weakest point to now, after the highest sales month in over three years.

To check out the full analysis of July 2008 click here –> Daytona Beach Home Sales – Detailed Inventory Analysis July 2008. Let’s look at the overall difference first:

The first chart shows the difference in total inventory. We can see significant reductions in both condos and homes for sale. That’s a good sign considering it wasn’t too long ago, about 2-1/2 years when 7,000 residential properties were on the market. All the numbers we discuss here are for residential single-family homes and condos from the Daytona Beach MLS.

Housing Inventory Daytona Beach

Housing Inventory Daytona Beach

The second chart shows total months of inventory. Again, we can see even more significant changes because of the increase in sales last year. Daytona Beach real estate sales were up 38.1% in 2009 over 2008 and these months of inventory numbers are calculated using December of 2009 sales when 414 homes and condos were sold.

Housing Months of Inventory Daytona Beach

Housing Months of Inventory Daytona Beach

So with the combination of higher sales and lower inventory, the total months of inventory for Daytona Beach residential real estate as listed in the MLS has dropped 52.4% of the last 18 months.

Current Daytona Beach Homes and Condos Inventory

This is significant. With a current inventory of 10.7 months, we are moving closer to a stable market. This number is still high compared to the boom period, but is getting closer a stable or neutral market. This is still a buyer’s market, but we need to look at the next chart to get a better understanding of inventory within different price ranges.

Daytona Beach Real Estate January 2010 Months of Inventory

Daytona Beach Real Estate January 2010 Months of Inventory

If we consider about six months of inventory to be a neutral market; that is neither a buyer’s nor seller’s market, then homes under $100,000 have achieved that level. Condos under $100,000 and homes from $100,000 to $200,000 are close. Then we get to condos from $100,000 to $200,000 and home from $200,000 to $300,000 and we jump over the average.

74% of the total sales in Daytona Beach are under $200,000. That’s were the months of inventory are lowest. If you are a seller in this range, you are in a better position to sell than if you are attempting to sell a property over $200,000. Of course, your property needs to be priced right to sell regardless of price range.

If you’re a buyer, you will be seeing more competition in the lower price ranges. There are still tremendous bargains, but more properties are selling. More demand and less inventory indicates that price stabilization is occuring in the lower price ranges first.

Homes are selling in the higher price ranges, but not nearly in the same numbers. I’ve sold several condos recently above $200,000 and $300,000. I’m seeing a lot of interest in an Ormond Beach riverfront home on John Anderson Drive that priced just under $1,000,000. We had 10 showings and I have another one on Sunday.

What’s interesting about the drop in inventory and months of inventory is that this is happening in one of the communities hard hit by foreclosures. There are a lot of short sales, but despite the short sales and foreclosures, inventory is falling. This is one the most important factors in price stabilization and as mentioned above, we are already seeing this in the lower price ranges.

We’ll continue to monitor and report inventory numbers in the coming months.

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