Condo Sales Still Anemic but Centex Reports Solid Sales

Single family home sales steady. Palm Coast lots show improvement.

May 11, 2007 – April numbers reported via the Multiple Listing Service (MLS) service indicate that the sale of single family homes is in a holding pattern. Both the number of sales and the median price are off slightly from March but in line with January and remain well above the low of November 2006. April was a better month for Palm Coast lot sales. The number of lots sold nearly doubled to 22 from 13 in March. But this is still only half the 43 lots sold in April 2006 and 33% below last April’s median price of $75,000.

Sales of Single Family Homes:

Condominium sales remain in a funk. The number of units sold is very low. There have been some minor reductions in the listing prices in Canopy Walk, Hammock Beach Villas, and Cinnamon Beach but none in other condominiums. Sellers continue to maintain listing prices well above current selling numbers. Prices will have to come down significantly before the number of units sold starts to climb.

Centex Destination Properties (CDP) represents one bright light in the local condo market. Centex took a lot of heat when they suspended further development of the Palm Coast Resort and Palm Harbor Golf Course. They have also placed a hold on seven remaining Tidelands buildings. However, according to a representative of Centex, sales of unsold Tidelands and Palm Coast Resort units are progressing well. The main reasons are:

• Centex appropriately reduced the price of units to come into line with current market conditions.
• Part of the deal with Bobby Ginn when Centex sold the Ocean Hammock Golf Course and Inn was that Centex received 1000 Hammock Beach Club memberships and 250 Ginn Golf memberships. Centex has used these wisely to both encourage those already under contract to close as well as to entice new prospects. Note: all lots are sold.
• Centex continued development of the Tidelands amenities. The Clubhouse and trails are completed, The tennis center and basketball courts will be done within a few weeks. Awaiting final permits, Centex is about to commence construction of the Intracoastal pool. CDP is in the application process for several Intracoastal dock permits but could not comment further on either the number of docks applied for or the timetable for the permitting process.