April Brings Turnaround for Homebuilders in Daytona Beach

For the first three months of 2009, homebuilders in Volusia and Flagler counties received 194 single-family and multi-family residential construction permits, down 63 percent from 531 in the first quarter of 2008, according to a report Monday from Hanley Wood Market Intelligence. Single-family home permits declined 49 percent while multifamily permits slid 88 percent in the region.

According to News-Journal Online, "The January-through-March quarterly numbers come on top of last year's dire report that the 905,000 home building permits issued in 2008 was the lowest since 1945 when there were half the people living in the United States. The 2008 total was down 35 percent from 2007 and down 67 percent from 2005 when homebuilding permits peaked at 2.155 million. The year-to-year decline was worse in Volusia than Flagler. Home building permits in the first quarter fell 68 percent, from 465 to 150."

Bob Fitzsimmons, of Gallery Homes of DeLand, agreed the first quarter was very slow, but in April, more buyers visited the models and more contracts were written, 6 compared to 2.5 in previous months. Sales centers for ICI Homes have seen increased activity in recent weeks, and a company spokesperson said April was the best month for sales in the last 3 years. Daytona-based ICI builds in East Volusia, Palm Coast, and other central Florida areas.

New home costs are down as much as 25%, interest rates are at historic lows, and the $8,000 first-time homebuyer credit are all strong incentives to purchase real estate in Volusia County. Although builders have plenty of new home inventory, the properties still are competing with resales of foreclosures and short sales. That's why they have slashed prices, raised incentives, and generally have become more aggressive in marketing their new home products.

Contact me to find out where in Volusia County you can shop for a new home, and which builders are offering the best incentives.

Sherry Armstrong, Realtor
sherry@sherryarmstrong.com
386-679-3191
www.sherryarmstrong.com
www.daytonabeachflhome.com