Daytona condo-hotels in June offer only 36 units for sale in the area. Out of 2,219 (without Oceanwalk with it’s 600 rooms). I have never seen the inventory this low, even at the peak of the market in 2005-2006. Then it fell from the “normal” 165-175 units for sale to 100, and then there was an explosion and prices started increasing exponentially…

This is a crazy market. Everybody know it.

What it means for Daytona condo-hotels?

Condo-hotels are behind residential condos. Condo market starts changing from buyers’ market to Sellers’ market way before condo-hotels notice the change. Their timing is different. It does not mean that when there is a change from the Sellers’ market back to the buyers’ market, condo-hotels lag behind residential condos. The opposite is true. Condo-hotels are slow to start moving up, and fast to start moving down.

Yes, we started noticing the change in the condo-hotel market. Direct oceanfront studios are now more than $100K. You are looking at about $125K and more for a direct oceanfront hotel condo unit.

Yet, this is the beginning of the rise.

And nobody knows how long it is going to last.

Last time we had crazy market, it happened in Daytona later than in south Florida, but it ended at the same time. We dimply had less of good times. And so many great buildings never were never built.

There are some indications that this will stay for some time, so we will be seeing increasing prices for quite some time. According to statistical data, we are not yet at 2005 level in terms of volume. Number of permits for construction pulled in the county in 2020 is less than half of the number of permits pulled in 2005, however, price-wise homes and residential condos are at or just insignificantly lower than in 2005.

But if the Sellers; market continues as we expect, then the prices will be going up and yes, we may and probably will beat the prices of the peak of the market in 2005 – 2006.

So, what if you own a condo-hotel?

Some people bought at the peak and spent a fortune, so selling today, while is easier, will not get them what they spent. So, you will not recoup your investment. If this is you – better wait.

From the price consideration, Plaza with its $42K and $49,900 (both city view) are probably the best options today because of the very low price compared with other condo-hotels. For example, take the unit for $42K. It was originally sold for $228K in 2006. Looks like we may reach the prices of 2006 in a year or 2, so that would be over 5 times more. Considering that people go crazy with traveling now, it might even be paying for itself and if yes, you get an excellent return on your investment (ROI).

Non of other condo-hotels would give you this.

You can also consider ocean view units there. There is one for sale at $55K. Not that the resale would be for much more but you simply would be able to sell easier and faster.

Direct oceanfront for $79K was bought for a bit over $280K. Again, excellent return, but it would be renting better and bringing more while you own it.

And this is yet another another consideration.

If rental consideration are a concern, you can get a direct oceanfront unit in Ocean Jewels for $124,900. They are lenient with rules, and you can do AirBnB there, rent yourself…

There is a unit in Castaways, also direct oceanfront. You can do your own rentals there. Pretty much same price.

There is another direct oceanfront in Ocean Jewels for $135K

There is a 1-bedr unit in Fountain, on the north side, very close to ocean for $139,500

Which direction you want to go?