- November 25, 2024
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This summer will mark six years since the Palm Coast real estate market began its sudden downward slide, when the inventory of for-sale homes eventually grew to more than 2,600. The inventory has been shrinking gradually since, dropping to 2,000 three years ago, then to 1,326 by August 2009, when it stagnated, holding within the 1,300 to 1,400 range. Inventory has begun to drop agai: It stands now at 1,232. This is a good sign.
The real estate market is driven by supply and demand. An increase in demand or reduction in supply tends to push the market up. With less competition in the marketplace, sellers will probably see some strengthening in prices.
Selected markets are showing definite signs of improvement. I’ve been watching sales in the Grand Haven community closely because Shirley and I are about to sell our home there. During the first two months of 2011, sales of 13 Grand Haven homes closed. The median price was $265,000, down slightly from a median selling price of $285,000 for the 15 Grand Haven homes sold during the same period in 2010.
But April looks like a turnaround month: 10 home sales have already been posted as closing. The median selling price has risen to $316,250. The median price per square foot also rose to $140.50, up noticeably from $127.14 in the first quarter; $13.36 per square foot translates into more than $32,000 difference in the selling price of a 2,400-square-foot home.
Of 75 listed Grand Haven homes, only seven are short sales and only one lender-owned. And 75 homes represent only 7.5 months of inventory at current prices. Most analysts believe that anything less than seven months of supply (but more than four months) indicates a “normal” market.
The resurgence of the Grand Haven market coincides with the reconstitution of its real estate sales group, now operating under Jim Cullis. Jim used to manage the community for LandMar Group, Grand Haven’s developer.
Another sign of the market beginning to turn comes anecdotally from agents and brokers. They say they are busier than they have been in years. Their optimism is supported by 471 homes under pending or contingent sales contracts.
