Condo market in the Shores
Today is March 26, 2021.
Condo market in the Shores is represented by 46 active listings. This is unheard of…
So difficult even to imagine such a low number… Do we even have a condo market in the Shores?
The prices for condos for sale in Daytona Beach Shores today start at $219K, and there are 4 more condos for less than $300K, which is a clear sign of that confused market. In a couple of months there will be no prices in the $200s, and we will move into $300s and $400s as a starting price. This is how it was in 2004-2006.
Another clue is the number of units under contract: contingent or pending. Today we have 66 units under contract. It is surreal to have more units under contract than listings. Nearly 50% more. Very soon there will be literally nothing to sell and that’s when the prices would hit the sky…
From January to today 94 condos changed hands. Another 66 are under contract, and only 46 are on the market.
Look at sales in 2020. 401 recorded sales. 37 condos were sold for less than $200K. We already do not have a single unit for less than $200K.
With this pace, of course, there will be way fewer sales this year simply because there is very little inventory. You can’t sell 94 condos with the inventory of 46 available condos, it is not happening. But the money volume will probably be the same if not more because it usually balances on the price, and then there is no inventory, the prices go up, and this is how at the end of the year the numbers seem to make sense.
Already many condos are sold for more money that the asking price, already there are multiple offers, and bidding wars…
My two cents…
For example, Cloverleaf South (182 units) and Cloverleaf North (214 units). 396 units total and not a single condo for sale. I do not remember this happening even at the peak of the market in 2005-2006. Even then, I believe there were few units for sale.
A healthy number is about 7%, so we should see about 28 units for sale in these two buildings, and we see nothing. And in healthy market we should have about 450 condos for sale, practically 10 times more than what we have today
And yet, this is still not the explosion, not the peak yet. I think this is where we are going, but we are not there yet.
This is a time of confusion. Some prices are up, some are still stagnant, like they were 6-12 months ago. This, of course, will change fast. It might only be a matter of a few months.
This is a crazy time, ladies and gentlemen. And who knows what is going to happen in the next 6-12 months. We are for a ride with a lot of surprises…