Distressed Sales Continue to Dominate Palm Coast and Flagler Co. Housing Market

Lender-owned (foreclosed) and short sales accounted for 53.7 percent of single-family residential home sales in February.

Palm Coast, FL – March 20, 2010 – Lender-owned (foreclosed) and short sales accounted for 53.7 percent of single-family residential home sales in Palm Coast and Flagler County during February. The median selling price was $136,000.
I’m not going to report units sold or total sales volume for February because the Flagler County Association of Realtors® switched to a different software system during the month. The change required that I use a different effective date for sales, so there was probably some volume shift at the cutover. The change also delayed data entry as the community of real estate practitioners learned the new system.
Distressed properties continue to dominate the local housing market, representing 53.7% of all single-family residential homes in the county. Everyone wants to know when prices will begin to rise again. I suggest watching the percentage of sales comprised of distressed properties. When that percentage begins to drop, watch for some upward pressure on prices.
New foreclosure filings continue at a consistent rate with no end in sight. As previously predicted, the number of upscale properties entering the foreclosure market is on the increase. While painful for sellers, it’s good news for the market. There will be no upward movement in prices until the distressed properties have been flushed through the system. Of 103 foreclosure sales scheduled in April, roughly a quarter deals with upscale properties. Here are some of them:
April Foreclosure Sales – Upscale Properties (the dollar amount shown is the 2009 assessed value.)
  • Grand Haven – 28 Village Parkway N – $435,934
  • Yacht Harbor Village – 272 Harbor Village Point – $160,000
  • Conservatory – 125 Aspen Way – $85,000
  • Conservatory – 169 Aspen Way – $85,000
  • Cinnamon Beach – Unit 251 – $471,200
  • European Village – Unit 323 B – $112,800
  • Hammock Dunes – Cambria unit 306 – $706,000
  • Hammock Dunes – Cambria unit 105 – $474,400
  • Hammock – 4366 Oceanshore Blvd N – $599,940
  • Cedar Island – 590 Springdale Dr – $331,406
  • Conservatory – 662 Mahogany Run – $65,000
  • Marina Bay – Unit 302, bldg 1 – $255,500
  • Grand Haven – 34 Marshview Ln – $271,114
  • Conservatory – 482 Sweetgum Ln – $85,000
  • Grand Haven – 8 North Park Cir – $397,108
  • Beach Haven – 3 Sandy Beach Way – $75,000
  • Hammock Dunes – La Grande Provence unit 1507 – $490,000
  • European Village – Commercial condo unit 2A – $58,126
  • European Village – Commercial condo unit 2B – $54,376
  • European Village – Commercial condo unit 2C – $81,001
  • European Village – Courtyard unit – $177,164
  • European Village – Gazebo unit – $99,972
  • European Village – Several garage condominium units – $2,407 each
  • Waterside – Condominium bldg 3, unit 106 – $173,300
  • Palm Coast Commercial and Industrial Center – Several commercial condominiums
3 replies
  1. Anonymous
    Anonymous says:

    A Fan in Partial Disagreement

    Toby – good information but take exception to your comment the price declines are "painful for sellers but good for the market". The amount of equity being wiped out on real estate translates into property owners attempting to recapture that lost equity by maximizing savings or other non-real estate related activity. While ‘flipping’ certainly overheated the market, legitimate investors, developers, small spec builders and many other real estate business investments have lost significant funds and equity which take decades (or generations) to recoup. As many of these not overly aggressive real estate owners attempt to replace some of their losses by savings, etc., money is not spent on remodeling, new boats, new vehicles, carpet, furniture, dining-out frequently, etc. For decades, real estate leveraging was how many small investors planned on having a reasonable retirement. Now those same investors are filing bankruptcy and watching banking relationships crumble due to failure of our centralized government to understand basic banking realities. As of today, our government controls almost all financing decisions for loans under $ 417,000.00 through its ownership of FHLMC, FNMA, FHA and VA. This limits financing options available therefore restricting the number of real estate buyers in the market (and with FHA and loan modifications continuing to lend to many non-credit worthy borrowers, it guarantees non-stop future foreclosure in the first-time buyer market therefore limiting appreciation). Add student loan control after today’s social takeover vote, and this country is decades from real estate recovery (the depresssion took 25-30 years to recover). Congress created a large portion of the problem through the Community Reinvestment Act plus pushing FHMLC, FNMA and FHA to accept lower credit standards. Now Congress and the President stand in the way of a true market recovery by not allowing banks to control the lending to qualified borrowers. When investors or second home owners cannot get financing because the Fed is controlling the banking decisions, I don’t know how this spiral will ever end. "Painful for Sellers – Yes; Good for the Market – NO."

  2. Bruce Kiley
    Bruce Kiley says:

    Ocean Towers at Hammock Beach

    Toby, do you have a view on value for the remaining 32 condos at Ocean Towers at Hammock Beach? And absorption rate?I am evaluating a loan collateralized by the remaining units. Thanks.

  3. Toby
    Toby says:

    Reply to Anonymous

    Thanks for your thoughtful comments. When I say it’s good for the market, I’m saying that it’s a sign that the market is taking the necessary corrective action to clear out the distressed inventory. Prices cannot make a strong move upward unless there is no pressure to meet distressed property prices.

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