The real estate market around the greater Daytona Beach area was strong in 2018, as inventory levels improved and highly competitive conditions began to stabilize.
An analysis of Daytona Beach Multiple Listing Service (MLS) data by Wyse Home Team Realty showed there were 1555 condo sales across the area from January 1 to December 31. The units sold had a median sales price of $209,000. Compared to 2017, that’s a 3.5 percent increase in sales. And it’s a 10 percent increase in median sales prices, confirming real estate experts’ predictions for Florida as the year began.
“We started the year with cautious optimism as experts predicted Florida would continue to see the strong median price gains for another year, said Ron Wysocarski, Broker and CEO of Wyse Home Team Realty in Port Orange. “We were thrilled to see those predictions holding true as 2018 progressed.”
Another positive outcome in 2018 was a rise in the number of available condos around the Daytona Beach area after inventory levels became critically low in 2017. Although the inventory levels did not fully recover in 2018, area condo buyers saw steady increases in the number of condo units listed on the MLS and the previously steep competition for available properties began to stabilize. All told, just 3329 new condo listings were added to the MLS in 2018. The total remains 2.7 percent below condo inventory levels during 2015, but it’s higher than the 3256 units listed during 2016 and the 3169 units listed during 2017.
“Inventory conditions are finally improving, but it was a slow progression and we saw many buyers give up the search and leave the market in 2018 before ever closing a deal on something,” Wysocarski said.
As median prices and total sales rose in 2018, so did the condo sales volume across the Daytona Beach area, MLS reports show. The total volume of condos sold in our area to climbed by $32 million, or 9.6 percent, to more than $365.3 million.
Currently, real estate market experts at the national level are predicting a somewhat rocky year for the real estate markets in 2019. Most experts agree that mortgage rates will rise this year, and there is agreement that home sales are likely to fall in 2019. But with a growing number of millennials’ lives moving toward homeownership, the sales slowdown may not be as bad as it otherwise could be. The chief economist at Keller Williams Realty recently told Forbes magazine they anticipate a modest 2 percent sales decline.
And while the experts are predicting median prices will fall in 2019 in some regions of the country, they’ve named some exceptions to those estimates and the Daytona Beach area is one of them! The economists at Realtor.com told Forbes magazine that they anticipate Volusia County will see an estimated 6.3 percent increase in home prices, placing it among the top 5 areas in the nation expected to see price gains in 2019.
“The Daytona Beach area condo market relies heavily on vacationers and seasonal residents, which makes it particularly vulnerable to changing economic and financial market conditions,” Wysocarski said of the forecasts. “While some predictions for our local real estate market are optimistic overall, there is chatter of a possible economic growth slowdown in 2019. If that happens, it could absolutely affect Daytona area condo market conditions.”
Ron Wysocarski is the Broker and CEO of Wyse Home Team Realty in Port Orange, FL. For more information regarding Ron Wysocarski, contact him at 386-562-2651, or visit TheWyseCondoTeam.com. Additional information is available to the media upon request. Statistical information in this release is based on information and statistical reports accessed from the Daytona Beach Area Association of REALTORS® Multiple Listing Service on 1/4/19 for the following periods: 1/1/15 to 12/31/15, 1/1/16 to 12/31/16, 1/1/17 to 12/31/17, and 1/1/18 to 12/31/18.