Newsletter: Which Metro Palm Coast Communities Fared Best in 2014?

The Palm Coast housing market is growing steadily. Condominium prices rose in 2014 but volume slowed.

Palm Coast, FL – January 21, 2015 – 2014 was a good year. By all measures, the Palm Coast and Flagler County housing market is rebounding steadily from the effects of the Great Recession. Here are the highlights of year-over-year improvements.

Homes

• The number of single-family Flagler County homes reported sold via Flagler MLS increased 2.7%
• The median selling price increased 6.9%
• The average price per square foot rose 8.9%
• The total value of all homes sold was 12.5% higher than in 2013
• Distressed sales (foreclosures or short sales) accounted for 30.2% of 2014 home sales vs. 35.8% the previous year
• Single-family home building permits increased 26%
• New foreclosure filings dropped 29.9% in 2014
• There were 1.0% fewer foreclosure sales in 2014
• The absorption rate for Flagler County homes stands at 4.7 (4.7 months of inventory) representing an strong demand for housing at today’s prices
• Fourth quarter stats show the positive trend is ongoing

How did the different communities compare? In the following table, I’ve separated Palm Harbor into two sections because the “c” section and “F” section are quite different.

Flagler County 2014 Single-family Home Sales Comparison by Community

The most significant change during 2014 was a steady decline in distressed sales, particularly short sales. Distressed sales accounted for 30.2% of all home sales during the year and 28.0% during the last quarter compared to over 50% during 2009 through 2011. Only 9.8% of current listing is distressed.

Condominiums
The condominium market is more difficult to analyze. GoToby.com looks at the condominium market as having two segments: those within the Hammock Dunes CDD (Yacht Harbor, Hammock Dunes, Hammock Beach and Cinnamon Beach) and those that are not. The HD CDD is beachside and private. Condominiums and homes within the HD CDD are generally larger and more expensive.

Based on unit sales, condominium sales in Flagler County were off 17% in 2014. The decline was most apparent in the HD CDD sector where volume dropped 38.3%, but median prices there still managed a 11.5% increase. The other sector dipped 8.1% in unit volume while median prices rose 12.5%.

Financing for condominiums is more problematic than for homes. Cash sales accounted for 71.2% of all sales in the HD CDD and for 72.3% in the other sector. Distressed sales have dropped significantly, reaching 24.3% in the HD CDD and 19.4% for units outside the HD CDD. There are fewer bargains, so the bargain hunters have exited the market, perhaps accounting for some of the slowdown in sales.

A “structural defects” lawsuit between the Cinnamon Beach Condo Association and developer Centex/Pulte continued through most of the year. The uncertainties associated with the lawsuit dampened Cinnamon Beach sales. The suit was settled at the end of 2014 with a result interpreted as positive by the condo Association Board. Cinnamon Beach sales have already perked up.

Condo sales highlights

Within the HD CDD:

• Median sale price – $362,500
• Median sale price for non-distressed sales – $407,500

Outside the HD CDD

• Median sale price – $135,000
• Median sale price from non-distressed sales – $144,000

* Listen to "Real Estate Matters" with me and co-host David Alfin every Sunday on WNZF News Radio right after the 9:00 A.M. news break.