Daytona Beach Condo-Hotel Market
It is 2017. New year, new expectations, and new realities we will have to deal with. New President, new aspirations, a lot of changes… And while no one knows exactly what is ahead of us, we can still look back at how Daytona Beach Condo-Hotel Market fared in 2016 and see if there are any signs of a trend that may get stronger in 2017.
Active Listings
There are 116 condo-hotel units for sale in Daytona MLS, excluding condo-hotels in 2 New Smyrna Beach Condo-hotels and Ocean Walk, which is usually classified by agents under condos, not condo-hotels.
Prices start from $34,900 for a tiny studio in Sea Dip. 11 units for sale for less than $40K, 13 units for sale from $40K to $50K. As last year. Prices go up to just under $200K.
Last year there 127 condo-hotel units on the market. Not a huge difference but 10% is a number, that you do not discount. Especially, if it is tied to price changes. And starting asking prices a year ago were at $19,900, and in Daytona Inn there were 2 units at this price.
Sold Listings
2015
143 condo-hotels units changed hands in 2015. Starting price: $17,000 (List price: $19,000). 13 units sold for less than $30,000. 29 units were sold in the $30s, and 30 units were sold in the $40s.
Highest sold price was for a direct oceanfront studio in Daytona Beach Resort & Conference Center, which was sold for $169,500.
2016
137 condo-hotel units changed hands in 2016. Starting price: $19,000. Only one under $20K. 4 units were sold in the $20s. 33 units were sold in the $30s and 13 units in the $40s. Highest price was $155K for a direct oceanfront studio in Daytona Beach Resort & Conference Center.
Summary
The prices of lowest priced sold condo-hotel units from 2015 to 2016 went up by 11.76%. Decreasing inventory by 9.48% is in line with the trend, where inventory goes down, prices go up. Not by a huge number, but 10% may be considered a sign of a trend.
But what is more important, if we look at Active Listings on the market now, and see that the lowest priced unit starts at $34,900, compare it to last year lowest priced unit and this is a whopping 83.7% price increase. This is huge. Well, asking price and sold prices are rarely the same, but even if you discount by a more than generous 10%, and compare to $31,410, the increase is 65.32%. This is still huge.
So, let’s ponder here. Does it mean that units will start selling like hot cakes? That’s a million-dollar question.
While you see the increase in price, the number of sold units in 2016 is less than in 2015. And the inventory is down… And Daytona Beach Condo-Hotel Market is still sluggish…
It is tricky. On the one hand even at low price fewer buyers were there. Can the trend continue? And there will be even fewer buyers in 2017. And even while the prices are up, selling would be still a serious challenge. If there are fewer buyer, there are fewer sales.
But the inventory is unbelievably low. I wrote in a blog a year ago, when there were 127 units for sale, that I have never seen such low inventory in all the years I am watching condo-hotels. And it is even lower now.
If you remember the craze of 10-12 years ago, when prices skyrocketed? Daytona Beach Condo-Hotel Market was sort of similar to what we experience now. And the inventory fell to 160… and then the boom started. Now we are at 116. Can the boom start next spring?
It sure can.
Will it happen?
Oh well, this is another million-dollar question…
