Area house prices finally drop

The inflation fighting has finally hit home prices in Volusia County, according to the latest sales report from Florida Realtors. Realtors in the Volusia-Flagler area sold 1, 010 existing single-family houses in July, down 1.8% from July 2023. The median price, where half sold for more and half for less, was $354, 420, down.8%. It was the first time this decade the median price for the two-county area has dropped.

Realtors sold 216 existing condos and townhouses in July, down 14.6%. The median price, at $321, 495, was up 3.7%. The higher interest rates also h ave hit builders in the Volusia-Flagler slightly. They obtained permits for 449 new residential units in July (433 single-family houses and 16 townhouses) compared to 505 new units (437 single-family residences, 33 townhouses and 35 apartments) in July 2023.

While we're still feeling the higher prices at just about everywhere we spend money, the price growth slowed for a fourth consecutive month to 2.9% in July, the lowest since March 2021, compared to 3% in June. The lower inflation rate, of course, sets up the Federal Reserve to finally reduce interest rates.

The Federal Reserve Board is prepared to start cutting its key interest rate from its current 23-year high, Chair Jerome Powell said at the board's recent annual economic conference at Jackson Hole, Wyo. Chair Powell did not say when rate cuts would begin or how large they might be, but the Fed is widely expected to announce a modest quarter-point cut in its benchmark rate when it meets in mid-September, the Associated Press reported.

My prediction is that there is so much on hold waiting for the interest rate cut, the Volusia County economy is going to explode this fall and winter.

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Not much to report for commercial real estate in Volusia recently. A Deltona investor bought the small strip retail center at 455 Volusia Ave. in Orange City for $499, 000. An Ormond Beach real estate investor bought the Espanola Villas apartments at 1540 Espanola Ave. in Holly Hill from Highlander Corp. for $1.05 million.

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Construction starts picked up some, though. Construction is starting on Oaks Breeze Plaza, a strip retail/medical center at 3883 Nova Road in Port Orange. Building permit issued to place pre-fab building on site at Promenade shopping center at Nova and Beville roads in Daytona Beach for a 7Brew coffee drive-through. Some remodeling jobs that are getting underway include Luxe Massage going into Volusia Square at 2455 W. International Speedway Blvd. and Sumo Sushi going into Shoppes at Beville at 1500 Beville Road, both in Daytona Beach.

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One new plan went on the drawing board, but it's one of those "what have they been waiting for" projects. A RaceTrac station is proposed next to DeLand Crossings industrial park in northeast quadrant of State Road 44 and I-4. While it's one of the busiest interstate interchanges in the county, and includes the Fairgrounds and the industrial park, there has only been one gas station there for years.

Managing Editor Cecil G. Brumley has been tracking business and the economy in Volusia County for more than 27 years. Contact him at [email protected] (no hyphens) or follow him on Twitter @cecilbrumley.