Banks and mortgage lenders continue to work off their backlog of foreclosures. RealtyTrac reports that over 325,000 properties has some kind of foreclosure activity against them in July. That’s up 4% over June, but down about 10% from last July.

These numbers are mixed, but the main point is that foreclosures are at high level and will stay there for some time. There are still a lot of ARM (Adjustable Rate Mortgages that will be coming due for rate increases and balloon payments over the next two to three years. So although these number may vary, the point is that they are very high and will continue to be high for the next several years.

The rate and number of foreclosures will vary widely, but in a market like the Daytona Beach and Ormond Beach homes market, the levels are high and will remain high for the next few years. That means plenty of buying opportunities as super prices.

A 10% variance month to month is not unusual, so we are not too concerned about this slight drop. If the numbers continue to drop month to month, that’s another story.

The market continues to show strength in the under $200,000 market segment. Inventory in that segment is under 14 months which puts it in a stable market environment. Over that price and it is still a significant buyers market in Daytona Beach.

You can get more market information at Daytona Beach Real Estate Market Reports.

So what’s going on? Well, before the speculative bubble began, we were selling about 500-600 homes a month in the Daytona Beach Market. This market includes Ormond Beach Real Estate, Port Orange Real Estate and the communities of South Daytona, Holly Hill, Ponce Inlet, Wilbur by the Sea and Ormond by the Sea. We consider that to be the “normal” level of sales.

The market is in a jumble now because of the speculation fueled by easy money and the subsequent bubble burst. During the height of the speculative frenzy, we were selling over 1,000 homes and condos per month. That is well above what the Daytona Beach market can support.

So, now we’ve swung to the other side, where sales are depressed because of the excess of speculation and the fear that home value will continue to erode. Balancing the fear of erosion is the concern that buyers may miss the bottom of the market and the best values for many years to come.

Our analysis shows improved sales that we believe are fueled party by sales of distressed properties and more people believing that the bottom is approaching.

If you are considering purchasing a home for any reason, keep your eye on trends and reports. You can view full evaluation at Daytona Beach Homes for Sale Market Analysis on my main website.

There plenty of price variety, but there is also tremendous variety in the units available ranging from Condotels (converted hotel rooms) to luxury penthouse condos.  You can see all the units that I have for sale at my Daytona Beach Real Estate website.

I have some very nice lower priced units in the Vantage Point Condominiums starting at $128,000.  I also have luxury condos available in some of the newer building.  You can see those at my Daytona Beach Real Estate listings page.

When we first moved to Daytona Beach, we lived in the Sherwin building.  The Sherwin is an example of the type of condos that were built before the luxury phase.  It is a very nice building with up to eight units per floor.  Some of the newer luxury buildings have much larger units with one to three units per floor.

Condo living is the way to go for many people.  There is no outside maintenance and the units are lock and leave.  They are great for year-round living and for a second home.  They can also be a good source of rental income.  During the season (November to April), most well maintained units rent easily.

So, if you’re considering a condo, give me a call at 386-566-7503.

I’ve started a Hub Page for Ormond Beach Real Estate.  Stop by and take a look.

When buying a home in Daytona Beach or anywhere else, you need to take advantage of the contract you will be presenting to the seller. The contract is a great tool to prevent problems down the line.

First, make sure any contingencies such as financing and home inspection are specifically stated with dates that are to your advantage. For instance, give yourself two weeks for financing approval.

Next make sure that if you want something in the house, and it wasn’t explicitly excluded in seller documents, then put it in the contract. Go into as much detail as necessary. Believe it or not, sellers will attempt to replace high value appliance with lower priced appliances. List the appliances and other things in the house that you want. The list might include light fixtures, sheds, curtains and drapes, room air conditions, and anything else you believe is part of reason you are making an offer on the home.

Making certain that the contract is precise in the offer serves two purposes;

1. You get what you expect without argument later,
2. You strengthen your negotiating position if there is a counter-offer.

Unless you have purchased many homes, your real estate agent should be able to guide you through the process. Unfortunately, this rarely happens. I see so many contracts from buyers and agents that are putting the buyer in a weaker position than necessary.

If you are considering buying a home in the Daytona Beach or Ormond Beach area, make certain that you have an experienced real estate agent to protect your interests. Call me at 386-566-7503 for additional information, or visit my Daytona Beach Real Estate website.

I will be selling real estate in the Daytona and Ormond Beach markets for many more years.