Ormond Appreciation Declines

For the first time since 2012, the appreciation value of real estate in Ormond and Daytona Beach has declined. Here is why:

📉 1. Interest Rate Pressure

The Federal Reserve maintained higher interest rates through late 2024 into early 2025 to fight inflation.

This led to higher mortgage rates, reducing affordability for buyers and slowing down demand.

Fewer qualified buyers = slower price growth or even slight declines in appreciation.

🏘️ 2. Post-Pandemic Correction

The market experienced aggressive appreciation from 2020 to 2022, driven by low interest rates and pandemic-era migration.

2023 and 2024 began a moderation trend, and Q1 2025 is a continuation of that correction, especially as more listings come on the market and buyers become more cautious.

📆 3. Seasonal Effects

Q1 is typically a slower quarter for real estate in Florida despite mild winters.

Many buyers wait for spring and summer to make moves, so appreciation trends often lag in Q1 and pick up later in the year.

🏗️ 4. Increased Inventory

Builders in areas such as Palm Coast, Ormond, and Daytona Beach have ramped up construction, creating a greater supply.

When inventory outpaces buyer activity, price growth flattens or slows.

🌴 5. Shifting Buyer Priorities

Some pandemic-era transplants are re-evaluating moves, especially retirees concerned about insurance costs and climate-related risks (hurricanes, flood zones).

Rising property insurance premiums in Florida are deterring some buyers, which in turn affects demand and price growth.

📊 6. National Economic Uncertainty

Continued economic uncertainty (layoffs in tech and finance sectors, cost of living pressures) has made some buyers pause major purchases.

Florida’s coastal markets, while still desirable, are not immune to broader trends in buyer hesitation.