Condo-Hotels in Daytona Beach Area. What is Happening

Condo-Hotel market in Daytona Beach area is slow, and it is not really surprising. Condo-hotel market goes hot after the residential condo market is on a rise for quite some time, which creates a serious gap between the prices, making condo-hotels the only option to be on the ocean for reasonable price. This is the last property type to appreciate and the first to start falling when the market winds change.

Overall market conditions have warmed up in the area, and it is reflected even in the Condo-hotel segment. From over 300 condo-hotels units for sale before January, we are to 242 units today. But this is still a lot, and the trigger for the price war starts when the number of available units falls under 100 units for sale in the whole area.

In 9 moths of this year there were 58 condo-hotel units sold starting from just $20K to $125K, a far cry from last year's 38 units sold in 9 months of 2008 from 39,000 to $235K.

Recession being so long has affected the financial stability of condo-hotel market in Daytona Beach area more than other types of properties. Some condo-hotels had to endure very costly concrete restoration, which could not come at worse time. Some owners have stopped paying their monthly Association dues... The improvement in the market that we see may not be enough to help the condo-hotels to get back into operating in the black, and the future of this segment is not clear at this moment.

For more information about Daytona Beach area condo-hotels or condos call me at 386-405-4408 or e-mail me.