Distressed properties dominated Palm Coast and Flagler County homes sales for six years after the housing bubble burst. Over that period, some areas fared better than others.
Palm Coast, FL – June 16, 2014 –Distressed properties dominated the Flagler County and Palm Coast real estate market for six years after the housing bubble burst. During the period including 2008 to 2013, 9,915 single-family Flagler home sales were reported through the Flagler Multiple Listing Service (MLS). Of these, 4,641 (46.8%) were distressed sales; 2,686 short sales and 1,955 REO (lender-owned). Some communities within the county fared better than the county as a whole, other communities not so well.
Seminole Woods topped the list with 63.7% of home sales categorized as distressed over the 6-year period. Grand Haven fared best with only 21.8% distressed sales. The Hammock Dunes DRI (Hammock Beach, Hammock Dunes, Ocean Hammock, Island Estates and Harbor Village Marina) came in second with 28.1% distressed.
Many factors affect the ratio of distressed homes:
- Financial staying power of the communities property owners. Affluent communities had fewer distressed sales.
- Timing – If a large percentage of homes in a community were built or sold during the 2004 to 2007 timeframe, there were likely to be more distressed sales. Among the original Palm Coast communities, Palm Harbor, Pine Lakes and Cypress Knoll were mostly established before the bubble. They had the lowest distressed sales rates.
- Investors v. owner/occupants – Investors, particularly those who had intended to flip in the short term got stuck.
- Home prices – Communities with lower median selling prices fared worse than those with median selling prices above the Flagler County median selling price.