Daytona Beach Market Update

The Real Estate craze of 2005 had speculators lining up to purchase even unbuilt properties and then reselling them many times without even actually owning them. As the market slowed, hundreds of thousands of speculators got stuck with properties they never intended to own. They bought by the dozens during the peak of the market - only to be faced with closing (and selling) during the very lowest of the downturn. With home sales stagnant, inventories swelling and foreclosures rampant, buy and hold investors should be poised to grab some incredible bargains. Premium properties at the lowest prices for the best terms. The best areas don't stay down long so be sure to do your homework and learn to seize the moment before the opportunities are lost. Listed by Forbes as one of the Nation's best priced areas, here are some more specific details on:

Daytona Beach

Daytona Beach is situated on the east coast of Central Florida nestled on the Atlantic Ocean, and is known to many as "the World's Most Famous Beach". What most don't realize is the city is also located at the eastern end of the Florida High Tech Corridor (recognized as one of the nation's top 3 biotech communities) and boasts a growing workforce of more than 300,000 skilled workers. The Daytona area's new $51 million strategic economic development initiative makes Daytona a leader in Florida's business development opportunities.

Appreciation Rates and Consistency - Historical Annual Average 21.9%
The US Govt Office of Federal Housing Enterprise Oversight uses the revised Metropolitan Statistical Areas (MSAs) to record historical appreciation rates. An MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting.

Daytona Beach is the commercial and cultural hub of the Deltona - Daytona- Ormond MSA which also includes nearby cities Deland, Holly Hill, Edgewater, Port Orange and Orange City representing a total resident population of 545,451.

In the past 20 years, the area had only one consecutive 11 month period of appreciation loss - in 1994 - with a 4.64% decrease in housing values. The values begin to increase prior to the one year mark and the following year (1995) housing prices rebounded to an average 12% increase for the next 12 month period. The average area appreciation rate in the beachside areas for the past 10 years is 21.9% per yr. The appreciation ranking for the previous 30 yrs is "excellent - with a rating of "10" relative to the nation (with 1 being the lowest - 10 being the highest). This means the area did not lose value for more than a 12 month period -even in a down market.

Continued Appreciation and Growth Indicators
The job market in Daytona is strong with a 3.1% unemployment rate. Recent Job Growth ranked among the top in the country at 4.35% (the U.S. Average is 1.30%. Future Job Growth is projected at 17.82% (the U.S. Average is 9.06%)

Recent projections by the U.S. Census Bureau estimate Florida as the state to see the nation's largest population growth - over 3 million people within the next five years, for a 20% increase. A Dec 2006 population growth study by the US Department of Census projects the central Florida region will experience "explosive" growth over the next 5 years from Ocala to Sebring, and St. Petersburg to Daytona Beach.

Foreign investors rank Florida in the top 3 for investing abroad, with Daytona and Miami beaches and Orlando/Disney areas being the top choices within the state for the past 12 years.

Multiple Markets for Economic Growth
Over 8 million tourists visit the area annually. Based on a nationwide Survey of Buying Power, this corridor ranked 20th in population with 3.24 million people and ranked 20th in Total Effective Buying income (EBI) at $61.3 billion.

Daytona's economic growth is not dependent solely on tourism - The city is an intrical segment in the I-4 high tech corridor with specialized industries in aerospace, automotive and manufacturing. Recent studies show the workforce to be educated, productive and competitive. In fact - Education, healthcare and manufacturing are the city's largest employers. The 450+ corporate partners headquartered in Daytona Beach include NASCAR, International Speedway Corp, LPGA International, Tyco Healthcare/Kendall, Gamro-Renal (medical manufacturing), Brown & Brown (commercial insurance), Enrichment Industries (vocational rehab), Crane Cam Automotive Manufacturing, Command Medical, Sparton Electronics, Advanced Ordinance (military hardware), Piedmont Plastics, Raydon and Embry Riddle Aeronautical Aviation.

The area's new $31 million Advanced Technology Center offers specialized machining, software and information technology courses along with advanced support for medical technology start-ups. The city also boasts seven highly ranked colleges and universities and two major medical centers.

Proximity to Major Transportation Arteries
Part of the greater metro area of Central Florida, Daytona Beach is located at the convergence of two major interstates that provide quick access to the 3rd largest consumer region in the United States with a marketplace population of over 17 million.

Three conveniently located airports serve the area. The Daytona Beach International Airport is only a few minutes drive to the beaches. Direct flights to Atlanta, as well as the New York, Baltimore and Washington D.C. metro areas, depart daily via Delta, Continental, and AirTran airlines.

Orlando International Airport, one of the world's major airports is located under an hour's drive and the Orlando/Sanford Airport is just 35 minutes northeast of Daytona.

Proximity to major metro areas
Several major cities in the state (Orlando, Jacksonville, Tampa, Gainesville), as well as many world known tourist attractions are within an hour's drive - (Disney, Sea World, Universal and NASA's Cape Canaveral).

Tax Incentives
No State personal income tax. Low 5.5 percent corporate tax rate.

Current Real Estate Market
The average sales price for real estate in the Greater Daytona Beach mainland in the last quarter of 2007 was $247,730 for residential and $305,212 for condominiums.

National Trends
The hottest trend in Real Estate today (40% of purchases!) is buyers snapping up second homes - Florida leads the list as top choices for second home purchases with the coastal areas getting the lion's share of buyers.

Growth Minded City Government fuels Economic Growth
The Daytona city government is excelling in important economic development initiatives and job growth. The leaders are dedicated to improving the city and surrounding communities to be world-class. Recent development on the oceanfront has had phenomenal success in converting what were aged motels on the beach into the most trendy condos and sought after clubs, bars, galleries, and restaurants.

Current Redevelopment projects already underway:
The current quarterly report shows 32 commercial permits issued for the city - totaling $147 Million in improvements for just the most recent 3 month period alone. Other developments include:

• $125 million beachfront boardwalk revitalization project stretching six city blocks, featuring an amusement pier, public parks and about 50,000 square feet of restaurant and retail space.
  
• Ocean Center's $50 million, 170,000-square-foot expansion will bring the beachside convention center to 230,000 square feet. The expansion boosts the Ocean Center to the fifth-largest in the state. Within one year, the expanded center is expected to bring a $225 million local economic impact.
  
• Baltimore-based Cordish Co. will partner with Daytona Beach-based International Speedway Corp. (NASDAQ: ISCA) on a 71-acre project, across from the Daytona International Speedway, to be called "Daytona Live!" Plans include 200,000 square feet of space for retail, dining, and entertainment, a 2,500-seat multiscreen movie theater, 200,000 square feet of office space and a 160-room hotel.
  
• Construction on the city's new $23 million police station began in June. The three-story, 97,000-square-foot project was funded by municipal bonds.
  
• Construction is underway for the development of 13.4 acres on the southeast side of Daytona Beach International Airport where a proposed 108,000-square-foot aviation space capable of supporting aviation and aeronautical businesses, as well as leased space for jet and turbine-powered general aviation aircraft is planned.