“Why are so many units up for sale at the Marina Grande?” I received this question by email.
Why? What is wrong with Marina Grande on the Halifax? What is wrong with these two magnificent 26-story towers on the river?
As of today, there are 37 active listings of condos for sale in two magnificent towers. Actually, 47, but 10 are listings for rent, not for sale. But 37 is still a high number. Let’s say I, personally, did not expect it.
What happened that could affect the sales in Marina Grande?
Is it because of the Hurricanes? Just recently we had 2 hurricanes: Ian and Nicole and, while they were by far not the strongest hurricanes on record in our area, they caused serious damage.
Yes, Marina Grande is a relatively new condo complex and it is not on the ocean, but when the overwhelming majority of Daytona condos are adversely affected, the costs go up across the Board. Insurance skyrocketed, Association dues increased dramatically. Special assessments practically in every condo simply added salt to injury, and if people in this situation considered leaving, who can blame them?
This is one reasons for many listings, but it is not the only one. We do not see the avalanche of new listings in many other condos, even those where the cost increases are the highest, so this is not the only reason.
I believe that another reason has to do with sales in Marina Grande. The market started improving, prices started going up. Inventory of units in Marina Grande started dwindling, and it started reminding 2004-2005. Buying when the prices started going up made sense, especially because the huge inventory of bulk purchaser, once sold, could put Marina Grande in the same shoes as other condos, and without the volume by the Bulk purchaser, the prices might jump and inventory fall.
So, many buyers were speculators. Who knew that our Sellers’ market would not last long? And that wouldn’t break the neck, as rent was good there. Not as good anymore, and coupled with the increases in cost of owning, pushed impatient owners to start selling. Out of 37 Active listings only 8 were purchased before 2019. All others are pretty “new”, which means that they are flips.
Will these 2 reasons explain what is wrong with Marina Grande?