The lack of new-home construction is one reason for the dearth of listings. Builders' housing starts are only at about 75 percent of their historical average as they focus on pricier segments of move-up buyers. As a result, there's a void in the number of new lower-cost homes that appeal to first-time home buyers. Builders blame the lack of production on higher costs for land, labor and materials that they say forces them to concentrate on the higher end of the market. Builders aren't the only ones to blame, however. Investors purchased about 4 million distressed properties – mostly in the lower-priced starter home segment – during the housing crash. They have been holding onto these properties, continuing to rent them out rather than selling.
What does that mean for buyers? It means they'll find fewer options this spring, and homes that are listed will probably sell quickly and at a premium price.
However, in Daytona Beach, there is an increase in development in condos, single-family homes and businesses. People are buying left and right, fueling increased demand. So if you can't find a place for growth, be sure to come to Daytona Beach and check out our inventory.