Palm Coast, Florida Existing Home Sales and Inventory Levels, Heading in The Wrong Direction
Nationwide Real Estate numbers for January 2012 were released today by the National Association of Realtors®. We hear all the time that real estate is local, so I have calculated the statistics for existing home sales for Palm Coast, Florida for January 2012.
Inventory of Existing Homes and Condos Data For Palm Coast, Florida
I wanted to first take a look at the existing inventory of available homes and condos, as it has been declining in recent months Nationally but, although, Year over Year from January 2011 (1675 units) to January 2012 (1610 units), home and condo inventory decreased by 65 units, that same trend did not continue when we look at the Month over Month data. From December 2011 (1538 units) to January 2012 (1610 units), we saw an increase of 72 total units which equates to about a 4.4% increase in inventory for January 2012.
The increase is not across the board and in some Palm Coast neighborhoods , the actual amount of homes or condos for sale has been decreasing. Some of those communities experiencing an increase in available homes or condos for sale include Grand Haven and Hammock Beach. Also, keep in mind that some Palm Coast condo communities, for example, The Tidelands, are still heavily dominated by distressed sales and listings; foreclosures and short sales.
Side Note: Warning, entering into the NO BS zone. Although, we have been getting our clients some tremendous deals in the Palm Coast, Florida real estate arena. Many current owner’s of Palm Coast homes and condos, whose properties have been lingering on the market for over 90 days, may want to revisit their pricing strategies if they would like to sell their properties, because there are only two reasons a property in Palm Coast, Florida doesn’t sell…either it is overpriced or the marketing of it is poorly executed…just saying. Our buyer’s are smart, savvy and highly educated on what a correct price is for property in Palm Coast, we take pride in that.
The Palm Coast condos and homes that are priced aggressively and realistically, are actually flying off the market. We have many buyers hanging on the sidelines just waiting for that correctly priced home or condo in certain neighborhoods. They subscribe to our Palm Coast Hot Property Alerts and Newsletters, to stay informed and ahead of the competition for the BEST Palm Coast properties. For instance, we are seeing a very tight inventory situation developing in both Surf Club and Sea Colony. When correctly priced, properties in those two neighborhoods hit the market, then sell very quickly.
Sales Data of Existing Homes and Condos For Palm Coast, Florida
Palm Coast real estate existing detached and attached dwelling sales for January 2012 were 136; a year over year increase of 15% . That is good news but not as great as the news when sales increase Year over Year for December 2011 by 26%. The not so good news for seller’s of Palm Coast homes and condos, prices are still falling. The median sales price decreased from January 2011 ($130,000) to January 2012 ($110,000).
The month over month sales numbers from December 2011 to January 2012 are also a bit disappointing. For December 2011 there were 173 sales compared to January 2012 of 136, that is a very sizable decrease of 21%
Palm Coast is still a buyer’s market and of the homes and condos currently for sale in Palm Coast, Florida, 80 Palm Coast properties are bank owned foreclosures and 246 Palm Coast properties are short sales.
Is Now a Good Time To Buy a Home or Condo In Palm Coast, Florida?
The answer is, It depends. Depends on your goals, depends on your price range and it depends on the neighborhood. I just wanted to do a quick summary of what is happening in Palm Coast Real Estate that is under the surface. Yes, there are some excellent bargains and values available in Palm Coast right now. Yes, interest rates are at an all time low, which gives a buyer more purchasing power. But, make sure you are working with a full time, experienced REALTOR®. Make sure you are educated as to the trends in the market and the individual neighborhood data to avoid making costly mistakes. You are on this Palm Coast Real Estate website right now, instead of someone else’s, for a reason. We feel that information is power, we are advocates of transparency and consumer empowerment with regards to real estate searches, information and transactions…that is why our clients use our services.
The Ross/Collins Team is a group of highly competent agents, we pride ourselves on educating our clients on the best opportunities in the Palm Coast area. And, yes, we do occasionally tell our clients NOT to buy at any particular time, but when they are ready and that ideal property presents itself, they do come back to us for our NO BS information and expertise in facilitating their real estate goals. We look forward to hearing from you on how we can assist with the purchase of you Palm Coast home, condo or vacant lot. Feel free to contact us anytime @ 386-931-5822 or by email.
There is a caveat moving forward,foreclosure overhang possible
Continue reading if you are interested in what NAR has to say…things are a bit different in other parts of the Nation.
Existing-Home Sales Rise Again in January, Inventory Down
Washington, DC, February 22, 2012
Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.
Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”
Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply2 at the current sales pace, down from a 6.4-month supply in December.
“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”
Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; recordkeeping began in 1971.
The national median existing-home price3 for all housing types was $154,700 in January, down 2.0 percent from January 2011. Distressed homes4 – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.
“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”
All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.
Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.
Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.
Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.
Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.
Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.
Existing-home sales in the Midwest increased 1.0 percent in December to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.
In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.
Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.
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*Disclaimer : The following data was complied through the FLGMLS. The Ross Team and Prudential Warren Real Estate are not liable for any discrepancies. This representation is based in whole or in part on content supplied by the FLGMLS. The FLGMLS does not guarantee nor is in any way responsible for its accuracy. Data maintained by the FLGMLS may not reflect all real estate activity in the market content.