It's been quite some time since I've posted to my blog because I've been so busy with showing and writing contracts. YEAH! As they say, if you throw enough jello against the wall...something is bound to stick...lol.
So, the number of residential sale in Daytona Beach, FL for April 2009 rose by 11% over April 2008. This is 4 consecutive months in a row. As a matter of fact, the Daytona Beach MLS inventory for residential properties have fallen another 100 properties to 5,323 as of May 3rd, 2009. These are all signs that the market is picking back up, but it doesn't mean we've hit the bottom.
For those buyers out there still on the fence asking "have we hit the bottom yet?", I would tell you that this data, although encouraging, is still inconclusive of reaching the bottom. One thing I do know, is that interest rates will not remain at these lows for too much longer. There's much talk about not just inflation but hyper inflation (double digit inflation). The only way to curve that is to raise rates. So, buyers that will need financing to purchase a residential property you might want to consider pulling the trigger sooner than later. Those of you that are Cash buyers, you have the flexibility to know when to "hold'em" and be patient for the perfect buy.
For those sellers out there holding out for the best possible price, know that although the data is showing signs of recovery, there are other national indicators that are showing signs that we are still going to be in this for the long hall. Many of the top financial analyst foresee the large banking institutions to be under capitalized which would create losses in the remaining quarters of 2009. I believe, based on what I'm seeing with loans, that banks will be forced to contract even further on credit and new home loans. I don't believe we've seen the worst of these financial issues. We will most likely see further foreclosures and inventory remain fairly constant. Although we've seen a drop in the Local Daytona Beach market, I believe it isn't a significant enough of a drop to waive the "checkered flag" and say the market contraction is over.
Only time will tell where this will end, but I can tell you...if you look hard enough there's always great buys!
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