Hotel Condos. February 2022
46 condo-hotel units (aka Resort Condos, aka Hotel condos) for sale in Daytona in MLS as of February 25, 2022. This is critically low inventory. Probably the lowest I ever saw it in my 20 years selling them.
In 2004, at the start of market heating up to its unseen before height, we started the year with a bit over 160 units, and then the market heated up and the inventory shrank, the sales and prices soared, but I do not remember it falling that low in all these years.
When a few years back I noticed that the inventory was falling and was at about 100 units for sale, I thought that 2005 was coming back. But no. We had low inventory, and have it now, and no bidding wars yet. Obviously low inventory is not the only trigger.
Last year when there were bidding wars on the condo front, condo-hotels remained cool.
The other trigger is the discrepancy between the prices of condos and condo-hotels. When condo prices skyrocket, the gap becomes significant, and condo-hotel start looking like it is a good alternative to much more expensive condos. Maybe it is the combination of these factors can become a trigger when the price for condos is very high, and inventory of less expensive condo-hotels decreases beyond some point.
The activity of the market you can gauge to an extent by sales. In the preceding 12 months there were 90 closings of condo-hotels according to MLS. This number could be about 80% accurate, as many agents do not classify properties properly and either do not mark the “style” at all as it is not a mandatory field or put them in the residential condos.
In the same period a year prior to that there were 71 sales. So last year was more active. February 2020 there were 4 sales of condo-hotels. February 2021 – 9, and February of this year so far – 5. However, with lower inventory, it is a comparable number. Similar trend with residential condos. The hotter the market, the fewer sales you get as there is not much to choose from and you get a high demand with low inventory. Higher prices, but fewer sales.