August Newsletter – Residential, Lot, & Condominium Update, Building Permits, Commercial Projects and More

July: 

Homes Sold – 127

Total Sales ($000) – 34,123

Building Permints (residential) – 47

The table demonstrates how the trends in the number of homes sold and the total sales volume track with the number of building permits. Note: the median selling price is the price at which half the homes sold for less and half sold for more. This is a less volatile measure than the average because the sale of even one expensive home can affect the average significantly.

July also highlighted a few segments of the market that are still problematic – lots in gated communities, and condominiums.

The highly advertised auction of a batch of investor owned lots in Ginn communities yielded disappointing results. The first two lots, sold without reserve, yielded such disappointing prices that the seller withdrew the remaining three lots. The auction of a condominium in Surf Club attracted only spectators, no bidders.

Foreclosure sales of properties in both Ginn and LandMar communities as well as oceanfront and Intracoastal properties in Flagler Beach brought no outside interest, the only bidders being the plaintiffs (banks).

These segments share certain features: 

• They are all discretionary purchases. People do not buy lots or condos because they need them right now.
• They have higher carrying costs (HOA or condo association fees and membership dues), causing ownership costs to rises faster This, in turn, makes it more difficult for owners to drop prices.
• No matter how many sellers there are, there is no market until there are buyers actually buying. That is to say that there is no market without transactions.

On the bright side, several expensive commercial projects have kicked off this year. Fourteen permits, each with construction values exceeding one million dollars, have been issued this year by Palm Coast. 

• SuperTarget, Town Center – $8,500,000
• Lowes, Cobblestone Village – $13,860,000
• Hampton Inn – $6,398,000
• Assisted living facility, 100 Magnolia Trace – $3,000,000
• Belk’s, Cobblestone Village – $6,871,000
• Federal Bank Trust, 108 Central Ave. – $1,626,000
• Golf Clubhouse at the Cypress Course – $1,300,000
• Medical Office Clinic, 21 Hospital Dr – $8,000,000
• The Conservatory Clubhouse – $15,649,817
• “Coconuts” Car Wash, Old Kings Rd – $1,200,000
• Storage office building, 6 Hargrove Ln – $2,575,000
• Space Coast Credit Union, 10 Leanni Way – $1,700,000
• Cobblestone Village, 16 unit retail building – $2,335,000
• Roma Court, Palm Coast Pkwy SE – $7,000,000