Perspectives on Daytona Beach Real Estate Sales, Prices and Mortgages

Apparently, the news media is catching up with some of the news that we’ve been reporting for awhile. There’s now recognition that nationwide, home prices were up 5.1% in February. Of course Daytona Beach real estate sales were up 15.3% in February over 2008 and 30.5% in January over the previous year.

I’m including a video from CNBC where two academics talk about real estate prices, sales and mortgages. The important thing here is not what they are saying (although it’s useful), it’s that they are saying anything positive. This could be signaling a reversal of the market and the golden period for buying.

Nicolas Retsinas, of Harvard’s Joint Center for Housing Studies, and Delores Conway, of the Casden Real Estate Forecast at USC are interviewed in the video. Mr. Retsinas reinforces what has been going in the Daytona Beach and Ormond Beach condos and homes in that there are two markets – the distress market with short sales and foreclosures, and the second market of non-distressed properties. Nationwide, distressed properties are 45% of sales, but in our area my experience says it much higher than that.

There is no consensus that price have stopped dropping, but Ms. Conway, states that the rate of falling has slowed. Both are concerned over rising unemployment rates and state that this will keep the turn-around slowed down.

Based on these comments, and what we’ve seen, here are the salient points:

• Sales Nationwide have increased despite this horrible economy
• Unemployment rates are affecting housing decision
• Prices are more affordable and when the economy recovers a bit, housing sales should increase putting upward pressure on prices
• Mortgage lenders are otherwise engaged and not lending much
• Foreclosures are 45% of sales nationwide and higher in the Daytona Beach area
• First time home buyers incentives are working. 50% of buyers in February were first time home buyers.

Enjoy the video. Comments are welcome.