- April 25, 2024
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For months, signs have pointed to resurgence in the local housing market. For 18 consecutive months, the number of single-family Flagler homes sold through the Multiple Listing Service has risen year-over-year. The inventory of homes listed for sale has dropped steadily. For months, the absorption rate (inventory/monthly homes sold) has declined. But home prices have remained stubbornly static — until now.
October saw 150 single-family homes sold, compared to 127 one year ago. That's an 18.1% increase. The value of those sales was up 17.9%. Homes are selling more quickly, too. The time from listing to pending sale (days on market, or DOM) dropped from 102 days in October 2011 to 65 days last month. In the accompanying article showing recent sales, the featured sales leader went under contract the day after it was listed.
The monthly median selling price of all homes sold increased from $124,000 to $132,500 year-over-year. But the median price is sensitive to the mix of properties sold. If a greater proportion of sales comprises distressed properties, the median price is dragged down. But a comparison of the component sales of October 2011 vs. October 2012 shows a broad trend of rising prices.
Short sales
Median selling price rose 7.9% from $114,500 to $123,530. DOM dropped from 211 days to 155.5 days. The price per square foot rose from $53 to $68.
Lender-owned sales
Median selling price rose from $100,000 to $109,250. DOM declined from 43 days to 37.5 days. The price per square foot rose from $53.77 to $59.50.
Cash sales
Median selling price rose from $113,000 to $121,000. DOM dropped from 131.5 days to 62.5 days. The price per square foot rose from $57 to $69.50.
Non-distressed sales
This category is key. It most closely approximates a "normal" market (Do you remember before short sales and lender-owned sales?). Median selling price was up 6.2%, from $146,000 to $155,000. DOM was down from 91 days to 57 days. Price per square foot was up from $75.90 to $79.05.
There are other promising signs. More building lots are being sold, a sure sign that people have plans to build in the near future. Building permits are up. Last October, seven different builders combined to pull eight building permits for new homes in the county. This October, 16 builders combined to pull 25 permits.
When I began my research in early 2010, prior to buying a condominium in Tidelands, there were about 60 units for sale, all distressed. Many were priced under $100,000. Today, there are eight units available (only one on the Intracoastal). Only four are distressed and only one is listed below $100,000.
If you are waiting for the bottom of the market, you're too late.
