Mixed signals in the January 2023 real estate update show that the housing market is moving but there is no consensus on where it is going.
PALM COAST, FL – February 15, 2023 – Mixed signals in the January 2023 real estate update show that the housing market is moving but there is no consensus on where it is going. Here are some of the highlights.
- Only 140 single-family homes were reported sold via the Flagler County MLS, down 39.1% from January 2022.
- The January median selling price was $359,400, up 4.2% from a year earlier. But the median selling price has dropped from its 2022 peak of $395,000 reached in July, a 9.0 drop.
- Days on Market (DOM) rose from 16 days to 37 year-over-year.
- Single-family building permits were down to 131 from 259 a year earlier, but they remain above pre-pandemic levels. Meanwhile, multi-family construction activity is on the rise with 274 townhomes coming out of the ground at The Trails on N Belle Terre, 300 apartment units at Pointe Grand on N Pine Lakes Pkwy, and The Preserve Apartments with 240 units on Roberts Road near SR 100.
- January ended with 754 single-family MLS listings, a decided increase from 198 twelve months earlier. Homes under contract decreased from 569 to 403 over the same period.
Interactive Map of January 2023 Flagler County MLS home sales featuring:
Conclusions and Predictions
The local market is leveling off slightly above pre-pandemic levels.
Over the next few years, multi-family construction will comprise a larger share of the new construction market, more than making up for the temporary decline in single-family construction.
New residents from within Florida and from other states will continue to be attracted to Flagler County and Palm Coast. Their numbers will be enhanced by the addition of blue-state to red-state migrants. These newcomers are driven by visceral motives (crime, homelessness, loss of freedom, and health) that supersede inflation and interest rate concerns.
Florida will continue to outpace the rest of the nation, led by growth in the Tampa, Orlando, and Jacksonville crescent, including Flagler County and Palm Coast.