Single-Family Homes for Sale in Flagler MLS Falls Below 1,500
When supply (inventory) drops in a supply and demand market, it’s a positive indicator. At 1,499, Flagler MLS listed homes for sale is down 38% from Oct ’07 and 13.5% from only twelve weeks ago.
Palm Coast, Florida – May 17, 2009 – Two key real estate market indicators continue to provide hope for the Palm Coast/Flagler housing market. The inventory of homes for sale through Flagler’s MLS continues to drop, falling below 1,500 for the first time in years. Meanwhile, the number of signed pending and contingent sales contracts grows, up 39.8% from 12 weeks ago and over 75% since the first of the year.
Notwithstanding continuing foreclosure filings and depressed prices, the decreasing supply of and continuing demand for single-family homes signals a tightening market. Demand is up because prices are so affordable. With so many lender-owned and short sale properties available, prices have fallen in many cases to well below the intrinsic value of the underlying asset.
Three factors are contributing to the drop in supply. One is continuing sales. Seven more homes sold in the first four months than in the same period in ’08. Flagler County School registration records indicate the county continues to gain population – not true in all areas of Florida. Second, local builders are building to order rather than building spec houses, so there’s no inventory of new models entering inventory. Third, several potential sellers have elected to withdraw from the market rather than competing head on with distressed property pricing. But regardless of the reason, buyers are seeing fewer homes available. The marketplace is working.
Excellent reporting
Toby, thank you for your article and especially for the actual listing information. What a great idea and way to report, allowing the readers to make their own deterninations as to inventory, value and general market conditions. We can all guess as much as we like, but the free market tells the truth.