Oceanside Inn finally completed the garage project, which took nearly 3 years. Two special assessments later it would be great to take a break of all this stuff, but hurricane Matthew had something in store for the resort. Of course, the resort has the insurance, but the damage from the storm is right under the amount of damages, which means that yet another Special Assessment is coming. The rumors are that it might be a bit over $1K per room.
I wrote a lot about Oceanside Inn. Like other condo-hotels, Oceanside Inn had elections, and there is one new name on the Board, but this is a topic of another blog post. Quite a few people were expressing their concern, but we do not know whether it fell on dead ears. At least, not yet.
I suggest you read my blog post Daytona Beach Condo-Hotel Market. Looking Back At 2016 for broader perspective and look at condo-hotel market in the area.
It might help better understand the particulars of or another condo-hotel.
Keep in mind, that since I posted it, the number of condo-hotel listings in Daytona area not including New Smyrna Beach and Palm Coast had risen to 125 units, signaling that this is seasonally the slowest point in the market.
The numbers
There are 12 units for sale at Oceanside Inn at this time. 4 units went “temporary off the market” just a few days ago, the agent tells me they are under contract, but it sounds and looks a bit weird, and I do not know what is happening there.
16 and 12 is a meaningful difference. At 12 it is about 10% of all ownerships there, so while it would still be a higher than “normal” number, it is better than 13% with 16 units. A “healthy” number is about 7%, which it is supposed to be in a stable and balanced market. Well, can anyone tell us when was the last time we saw stable and balanced market?
Prices start from $42,000 for a studio, and go to $195,000 for a one-bedroom/1 bath penthouse oceanfront unit. Interestingly, the County Property Appraiser put $34,391 as taxable value for this unit. Go figure…
Anyway out of 12 units 2 are being sold in the $40s; 3 in the $50s; 1 in the $60s; one in the $70s; 1 for $94,900, and 4 condo units are priced over $100K.
Relatively recently we did not see $100K and up. Progress in the market is obvious, but it is still slow and the market is weak.
Sales
2016
13 units changed hands in 2016 in Oceanside inn.
1 for less than $30,000
5 were sold in the $30s
4 were sold in the $40s
2 were sold in the $50s
1 were sold for $71,500
2015
12 units were sold. Lowest price was $26,000
5 units were sold in the $20s
4 units were sold in the $30s
2 units were sold in the $40s
1 units were sold for $52,000
2014
9 units changed hands in 2014. Lowest price – $27,000.
1 unit was sold in the 20$
4 units were sold in the $30s
4 units were sold in the $40s
Summary
So what is the outlook for 2017? We would probably watch Oceanside follow general trend. Prices in the resort are still lower than what they should have been. Completion of the garage, while followed with increase in value, is slower than in other condo-hotels. There are still problems with outdated room furniture, some aesthetic issues, and, of course, issues on the Board, which yet to become “for the people”. It might start moving in this direction, but with only one new Board member, it is unlikely we will see a positive change on the Board.
Oceanside Inn used to lead the condo-hotel market in the budget category. Not now. Of course, there is potential, but hey, we have seen how it went from the best to the bottom of the food chain.
Only time will tell.
