The Palm Coast/Flagler real estate market is unique. Palm Coast home prices surged ahead of the rest of the country, topped out earlier and plunged further.
Our market is littered with more distressed properties (lender-owned or short sales). Our median selling price for single-family homes is about half what it was at the 2006 peak. Even within the Palm Coast market, there are sub-markets.
Neighborhoods with higher median selling prices generally have fewer foreclosures and short sales. Cypress Knolls and Palm Harbor fared best among the original Palm Coast neighborhoods. As reported to the Multiple Listing Service, distressed sales represented less than half of all single-family home sales in these neighborhoods during 2010. In all of Flagler County, distressed home sales accounted for 57.8% of all home sales.
Grand Haven, Hammock Dunes and Hammock Beach logged higher median selling prices and fewer distresses sales, but these gated, golfing communities carry a higher inventory of unsold homes. At the present rate of sales, it would take more than 17 months to sell currently listed Grand Haven homes. Ocean Hammock carries 24 months of sales in its inventory of listed homes. Hammock Dunes carries more than 58 months.
One factor common to all neighborhoods and communities is the ratio of lender-owned sales to short sales. Lender-owned sales increased, while short sales generally decreased as banks became more aggressive, taking possession of foreclosed homes.
Distressed properties factored into Palm Coast’s original neighborhood home prices beginning as early as 2008.Having hit bottom early, these home prices are more stable, dropping less than 5% in all the original Palm Coast neighborhoods.
Prices in the gated communities experienced downward pressure from distressed sales: The median price of Grand Haven homes dropped 7.3% from 2009 to 2010, Hammock Dunes and Ocean Hammock dropped 31.1% and 16.4% respectively over the same period.
TOBY TOBIN publishes real estate news at www.GoToby.com.