Every now and then I sit and scroll through old e-mails, deleting some and stumbling upon those that at one point were very hyped about buying a condo on Daytona Beachside, requested tons of information, asked me go to the unit and take dozens of photos...
But it is part of the job, and I do it.
Just last January-February I have exchanged 17 e-mails with a customer, who was looking at something definitely oceanfront or great oceanview, 2 bdr/ 2 baths... Finally he picked the least expensive unit in 89 Oceanfront Condominiums in Ormond Beach, cut it by another $30K and wrote that if he could get it for $140K, he would then present an offer with a long list of contingencies...
I am not the Seller, I am only an agent, so I contacted the Listing agent. Usual story. The unit was priced $34K lower than next lowest priced unit, and the reason for that was that there was a serious legal problem with ownership, and getting it was not a simple thing. There should have been attorneys involved and the outcome was not looking rosy. Of course, dropping it another $30K was out of the question. I relayed it to my customers, and they disappeared.
Yeah, yeah, yeah, I know that the market in Florida is terrible, I can read newspapers and I watch TV, so you do not need to tell me. So far I did not hear from the media that Sellers are paying Buyers to buy their properties. Ain't happening.
If it is the lowest price, it is usually a distressed sale, and that was exactly the manifestation of those "terrible" housing market conditions in Florida, that media was reporting. Did media anyone that the prices for a 2 bdr/2 bath 1,200 sf direct oceanfront condos in 89 Oceanfront was $140K? Or even $169K? The low "crazy" price in this building was from $199K. And it is a far cry from the top price at peak market at $407K. This is where you have your over 50% drop in value, but it does not mean that you take the lowest price and then want 50% of it... Ain't happening.
So, 6 months later, are there any changes at 89 Oceanfront? Pricewise – not much. Excluding that challenged distressed sale with asking $169,900, normal price unit before was from $192,500 and to mid $200s. Now it is $199,900. Any other changes? Yes. If half a year ago there were 7 units for sale, today there is only one.
And though the numbers may differ from condo to condo, the trend is the same. Inventory is down and is low. Of course, when there is only one unit in the building, there is no competition in this building. The only competition is other buildings. But their inventory is also low and getting lower every month.
Does it tell you what it tells me? Do you see what I see?
It tells me that there is a reason I already hear from customers the question «Isn't it overpriced» when they are looking at the lowest priced unit. How can it be overpriced if it is the lowest price in the condominium building?
-- Because we could buy a unit here for less.
You sure could. But you didn't.