Plaza Resort and Condo-Hotel Market
There is a recent post about condo-hotel market in Daytona Beach area. Of course, it is important to see a bigger picture when we try to look at particular condo-hotel, so I encourage you to read it, as what follows is simply the data about Plaza Resort, and, combined with the post about condo-hotel market, it might give you a better idea of where Plaza Resort & Spa is now and where it might be heading in 2017.
Current Market
There are 23 units for sale in Plaza Resort & Spa. This is the number of Active Listings in Daytona MLS. There is always a question whether this is the number of units, that owners want to sell, of there are more, but the owners do not put them on the market, as they do not have much faith in its strength.
Usually we do not know it. This time we have an idea. It is because I was, and might even still be working with the investor, who bought 10 units in Plaza, and only 2 of those units were on MLS. So 8 units were sales of unlisted units.
Similar situation is now. We have several contracts for unlisted units, which I presented to the investor. He has not yet signed them, and to tell you the truth, I am not sure he will sign them at all, but I do not know it yet.
All I wanted to say is that I would add at least 8 more units, that owners would like to sell in Plaza Resort & Spa. And yet, even at 31 this is not a number, which shocks me. We have seen higher numbers, plus, let’s not forget it is the slowest time of the year when the inventory tends to grow, and the prices tend to go slightly down.
Prices start from $35,000. City view 427 sf studio, yet very low price. Actually, it is underpriced. To see it you can simply check prices for units there. Next unit is priced at $49,900. And it is also a low price. Next is $54,900. There are 11 condo-hotel units priced in the $50s. All of them offer ocean view.
So, $50s is pretty much starting market price for a studio there. Does it make sense? Theoretically. What I said is right. However, there is a unit for sale for $35,000 and market value, considering the view, or lack thereof, is about $15,000 more. When you are looking at a buy for mid $50s, and you can grab something for $20K less, it is a super deal, but the unit for $35,000 is still there. No takers.
This is a phenomenon, and I do not have an explanation besides trivial “things happen”. All it tells you that great price does not necessarily mean quick sale. And this is an excellent example of it.
7 units are priced in the $60s, and 3 remaining units are priced in the $70s. For a premium condo-hotel, where units started from $200K and went up and up and up, this is very depressing. Especially considering that prices already were higher 1-1.5 years ago.
When I see that direct oceanfront excellent unit is for sale for $61,900, it is an uneasy feeling. These units already went to close ot $100K, and we thought they would go even higher, and yet they are down again. 5 direct oceanfront units in Plaza Resort & Spa for less than $70K. And seeing the highest priced unit in Plaza for only $79K is also not a good sign. Even for a 09 stack direct oceanfront unit, it is approximately 25% drop from the prices of Spring of 2014, if I remember it correctly.
Sold
2014
20 units sold starting from $34,000. 2 units sold for less than $40,000. Highest priced unit went for $93,000.
2015
22 units Changed hands. Starting sold price: $25,000. 10 units sold for less than $40,000. Highest priced oceanfront unit changed hands for $63,000.
2016
23 units sold. Starting sold price: $30,000. 14 units sold for less than $40,000. Most expensive unit was sold for $70,000.
2016 sales included 10 purchases by the Investor (I listed them at sales for statistical purposes). So, while it sounds like the number of sales was in line with previous years, it is not really so. It was a slow year for Plaza.
Summary
Prices really fell in 2015. They are stronger in 2016, even though they are still behind 2014.
Coming 2017 may turn out like 2004, when in January it was dead and prices were low, but not the lowest in previous 3 years, and then they went crazy.
While nobody can really explain what triggered it in 2004, this time we see improvement in economy, rise in confidence, new President, who gives hope and adds confidence to many, so, as a result, we might see a dramatic change. After all, asking prices show a dramatic increase.
The problem is not the price but the balance, and if there are no takers, no matter what the prices are, little happens…
We always have the way to go up… or down.
We will soon know the answer.
