My blog resulted in a call from snowbirds. They have been renting here for years, and now are getting ready to retire and settle in Daytona Beach Shores. They are familiar with the area, have seen condos on the beach and know what they want.
In 2009 they fell in love with a unit in Palma Bella in Daytona Beach Shores. Priced at $398,500, this large 2,425 sq. ft. direct oceanfront three bedroom-three baths unit on the 3rd floor was an excellent buy.
They were tempted, but there was an issue with getting money from the retirement plan, and, I believe, they felt that the market was bad, and when we think it is bad, we want to wait. And they passed.
Fast forward to 2011. Now they are ready, still love Palma Bella (and who wouldn’t?) and it is a classic situation, when we would like to buy something today for the price that was there yesterday. With the money, and knowledge that we have today, can we go back in time and buy something for the yesterday's price?
The lowest price for a unit on 02 and identical 07 stack in Palma Bella (Canary Island Palm model) today is $569K. What has changed is the inventory. There were 7 units for sale in Palma Bella in November 2009 and only 4 today. At the same time there are more buyers, so even a tiny bit of pressure causes the prices to go up.
Few years ago developer still had units, for which original buyers put down payments, and when they walked away, a cool $100K+ deposit stayed with the developer, so when developer was offering deep discounts, that $100K was a nice cushion.
Developer has sold all his units and is no longer in the picture. And while for developer discounting was a matter of getting less and moving forward, you can't expect the same discounts from the regular sellers.
The unit was sold in December 2009 for $320,000. So, this was yesterday. And today a similar unit is for sale asking $569,000. Is it possible to negotiate? Probably... Maybe even to $520,000. That would make the difference $200,000. Considering that it was sold in December, it is about a bit less than 20 months ago.
Which makes the cost of delay $10,000 a month. And nobody guaranteed that the seller would even sell for $520K. So, is it possible that the price for a oceanfront condo may go up $200K or more while the market is so bad?
You bet
And while I can't help you buy at 2010 price, I can help you get the best deal in today's market.
Call me 386-405-4408. Daytona Beach area is still a good market for you, and you are still buying today for pretty much yesterday's prices...
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