Daytona Beach Real Estate: Home Sales Slow, Home Prices Rise

People may have been in search of a Florida home loan throughout the Volusia-Flagler real estate market - but they did more looking than buying during February. According to the Florida Association of Realtors, sales of existing homes in the area dropped to 642 - 24 percent fewer than a year earlier.

Those who did buy property and/or take out a Florida home loan were willing to pay record prices. The median price for single-family homes changing hands last month rose to $227,000, or 34 percent above prices paid in February 2005. The new figure represents a $2,400 advance over the previous monthly high of $224,600, set in December.

Florida home loan experts don’t seem concerned this housing downswing will last too long.

“I don’t think our market is in any trouble,” said Anne Yordon, president-elect of the Daytona Beach Area Association of Realtors. “If a property is priced fairly, it will sell. Daytona has a long way to go to catch up with the rest of Florida’s prices.”

Condominium prices came in even higher, according to the the most recent report.

The new condo median price hit $250,000, or 6 percent higher than last year, and 5 percent above the $237,500 level recorded only a month earlier. That put the Daytona Beach market above the statewide median condo price of $218,700 - making it pricier than traditionally posh places like the West Palm Beach-Boca Raton market at $220,800 and Fort Lauderdale at $216,800.

Some agents said sales already have started to rally.

“I’ve had an awful lot of lookers, but not a lot of action except for the past couple of weeks,” said Debbie Aiken, president of the Flagler County Board of Realtors. “I think we may see some good sales numbers for March - a little pent-up demand maybe.”

The issue of property taxes

However, Patricia Steiner, who is trying to sell a two-bedroom home in Ormond-by-the-Sea for $231,900, said she thinks property taxes are scaring away many prospects.

Steiner and her husband buy fixer-uppers, renovate them and sell them. She said their smaller homes had annual property taxes in the $600 range a few years ago. But now the property she’s marketing at 19 Linda Drive carries a tax bill of $2,900.

“People who want to downsize can’t afford to move to a smaller house because their property taxes will end up higher,” she said.

While this factor may negatively affect those seeking an affordable Florida home loan, the nationwide increase in home sales provides hope. The market in The Sunshine State has always been known to remain strong.