Lender-owned Homes Show up in High-end Market
Three of five Palm Coast/Flagler homes sold for over $500 thousand during May were lender-owned (foreclosed).
Palm Coast, Florida – June 5, 2009 – As predicted, foreclosed high-end properties are making their appearance in the local market. Distressed sales (Lender-owned and short sales) are becoming more common among expensive homes and choice building sites in MLS listings.
Three of five homes sales (closed) during May in Flagler County for over $500 thousand were marketed as lender-owned. In fact, they were the three most expensive homes. Two were $1 million or more. In all of 2008 there were no short sales or lender-owned sales of homes above $500 thousand. The trend that began this year is accelerating. Prior to May, there had been two lender-owned and two short sales in that price category.
At all price levels, distressed sales represented 56% of all sales, down slightly. In spite of the appearance of more expensive homes in the distressed category, the under $200 thousand segment accounts for the bulk of the distressed sales – 47 of 50 short sales and 16 of 20 lender-owned sales.
Buyers are snapping up lender-owned homes quickly. Twenty were sold (closed) in May. At the end of the month, only 14 were listed in MLS and 25 contracts were pending.
Overall local trends continue to move in the same direction as previous months. Among the most significant highlights is the continued decline in inventory (homes listed for sale) coupled with the continued rise in pending sales contracts. Currently, 1,459 single-family residential are homes listed for sale on MLS. 549 homes are under pending/contingent sales contracts.
Absorption Rate
The absorption rate (explained) for single-family homes continues to gradually improve. Several areas are showing a normal rate in the under $200 thousand segment. The county as a whole is approaching a normal rate.
|
Area |
3rd Qtr ’08 |
Apr-May ’09 |
| Cypress Knolls | ||
| Under $200,000 |
7.5 |
6.8 |
| $200,000 to $300,000 |
14.6 |
7.6 |
| Over $300,000 |
18.0 |
N/A |
| Indian Trails | ||
| Under $200,000 |
8.2 |
6.1 |
| $200,000 to $300,000 |
10.5 |
35.0 |
| Over $300,000 |
42.4 |
N/A |
| Lehigh Woods | ||
| Under $200,000 |
7.8 |
7.3 |
| $200,000 to $300,000 |
18.3 |
25.0 |
| Over $300,000 |
N/A |
N/A |
| Matanzas Woods | ||
| Under $200,000 |
12.0 |
6.0 |
| $200,000 to $300,000 |
11.4 |
N/A |
| Over $300,000 |
30.3 |
N/A |
| Palm Harbor | ||
| Under $200,000 |
6.5 |
4.9 |
| $200,000 to $300,000 |
6.5 |
12.6 |
| Over $300,000 |
14.7 |
44.0 |
| Pine Lakes | ||
| Under $200,000 |
6.4 |
9.5 |
| $200,000 to $300,000 |
15.0 |
14.0 |
| Over $300,000 |
22.4 |
N/A |
| Quail Hollow | ||
| Under $200,000 |
3.5 |
5.6 |
| $200,000 to $300,000 |
13.4 |
6.0 |
| Over $300,000 |
N/A |
N/A |
| Seminole Woods | ||
| Under $200,000 |
5.5 |
6.7 |
| $200,000 to $300,000 |
13.9 |
N/A |
| Over $300,000 |
N/A |
N/A |
| Flagler County (all) | ||
| Under $200,000 |
10.1 |
7.0 |
| $200,000 to $300,000 |
21.6 |
19.9 |
| Over $300,000 |
49.8 |
48.3 |
The recent real estate buzz has been less about existing market conditions and trends and more about the area’s two largest developers – Landmar and Ginn. Landmar’s parent company, Crescent Resources, is apparently facing possible bankruptcy. The company owes $1 million in delinquent real estate taxes locally (story) and is being sued by the Jacksonville Development Commission because it has failed to make scheduled payments for a project in that city. (story) Overall, Crescent reportedly has $1.4 billion in loan payments due in the near future.
The Ginn Company faces another lawsuit containing not only allegations against the company, but also against three major banks. (story) This is the "most read" story on GoToby.com. Additionally, a move by the company to consolidate approved residential development units into a confined space near the core Hammock Beach Resort, including beachfront property and portions of the Ocean Course has riled local residents. A Notice of Proposed Change will be on the Flagler County Commissioners agenda for their May 15th meeting. (commentary) Bobby Ginn was prominent in a NY Times Business Section story on May 24th. (link to story)
When over 20" of rain fell locally within a week, flooding occurred in Bunnell, Daytona North, Ormond Beach, Holly Hill, Daytona Beach and Western Flagler County, but Palm Coast avoided disaster. That’s because their unique storm water management system of swales, ditches, and canals includes the city’s streets. (story)
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