The Daytona Beach real estate market is highlighted by an incredibly high foreclosure rate. In fact, few major metropolitan areas across the country have exhibited a higher distribution of foreclosures than the Daytona Beach housing market. The poster child of the entire Florida real estate market, real estate in Daytona Beach is a big reason Florida currently boasts the highest foreclosure rate of all the states. That said, the volume of distressed homes in Daytona Beach is currently leaning in favor of local investors. Select neighborhoods have proven lucrative for Daytona Beach real estate investors in recent history because of the area’s low acquisition costs. As a result, Daytona Beach has seen an influx of investor activity.
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Median Home Price Daytona Beach
The median home value in the Daytona Beach real estate market is somewhere in the neighborhood of $147,400, according to Zillow. Today’s median home value is the result of seven consecutive years of appreciation, capping the latest increase with a 5.1% jump in the last year (July 2018 to August 2019). To put things into comparison, the median home value in the United States increased 5.2% over the same period. It is worth noting, however, that real estate in Daytona Beach is expected to appreciate at a faster rate than the national average over the course of next year, 2.8% and 2.2% respectively.
Daytona Beach Foreclosure Statistics
According to RealtyTrac, a nationally recognized real estate information company, the Daytona Beach real estate market is home to some 273 distressed properties. The homes identified by RealtyTrac are currently in at least one of three stages in the foreclosure process: default, auction or bank owned. The distribution of distressed homes is fairly evenly split between the three types, but the majority of Daytona Beach’s distressed properties are pre-foreclosures. In fact, 43.8% of the homes identified by RealtyTrac are merely at risk of foreclosure (pre-foreclosures). The remaining 56.2% of Daytona Beach’s distressed homes are split between auction homes and bank-owned homes, 33.3% and 22.9% respectively.
Despite dropping 22.2% from the previous year, pre-foreclosures still represent the majority of the area’s distressed homes. That said, investors looking to acquire deal at a discount may be able to tilt the scales in their favor by focusing primarily on motivated homeowners who are merely at risk of falling into foreclosure. Those at risk of falling behind even further on mortgage payments may be willing to part ways with their proper-ties at a discount. As a result, investors may want to pay special consideration to the following neighborhoods, where the distribution of distressed homes are highest in Daytona Beach:
32124: 1 in every 544 homes is currently distressed
32117: 1 in every 630 homes is currently distressed
32114: 1 in every 1,241 homes is currently distressed
32118: 1 in every 1,992 homes is currently distressed
32119: 1 in every 2,981 homes is currently distressed
Daytona Beach Real Estate Investing
According to Attom Data Solutions, lenders across the country “started the foreclosure process for the first time on 26,055 property owners in July 2019, up 6 percent from the previous month but down 14 percent from a year ago.” It is worth noting, however, that of all the qualifying metropolitan areas, few contributed a higher foreclosure rate to the national number than the Daytona Beach real estate market. In fact, one out of every 929 housing units in the Daytona Beach market is considered distressed. That’s an important distinction to make, as foreclosure activity was actually down 21 percent on a national level. That said, Daytona didn’t only go against the national trend, but it actually had one of the worst foreclosure rates in the country.
While distressed properties are perhaps a homeowner’s worst nightmare, they are essentially the most coveted assets in the real estate investor industry. If for nothing else, the owners of said distressed assets are most likely motivated to sell their homes; that, or risk facing the consequences of foreclosure or bankruptcy. More impertinently, however, motivated sellers are an investor’s best friend. The higher ratio of motivated sellers in the Daytona Beach real estate market should lean heavily in favor of local real estate investors looking to acquire deals at a discount.
Daytona Beach Real Estate Market Summary
For as picturesque as the Daytona Beach real estate market is, the city is not without its faults. In particular, there are an inordinate amount of distressed properties within the city limits. It is worth noting, however, that the sheer volume of distressed homes in the Daytona Beach market may actually work in favor of local real estate investors. The ability to find and acquire distressed properties in Daytona Beach has sparked an influx of investor activity. As a result, Daytona Beach real estate investing has taken on a whole new persona in recent months, and should continue to remain attractive for the foreseeable future.
Have you thought about investing in the Daytona Beach real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Daytona Beach in the comments below.
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