"Movin' On Up!"

Yesterday's blog post, "Statistically Redundant Statistics," 5/14/07, included a little tongue-in-cheek envy, aimed at our friends in California. Newport Beach, in Orange County, to be exact. Now, Palm Coast and Flagler Beach are both beautiful. It's peaceful... and even though we've just been through a challenging period of hyper-growth, we remain relatively unspoiled. But, if you've ever been to the coastal areas south of LA, you know it's just simply a different planet. Magnificent estates, high on hills, overlooking the Pacific. Shopping and restaurants to please the pampered. Marinas filled with dreamy yachts. You get the picture. It is not without cause that the area is known as "LaLa Land."

Things do change, don't they? In 2001, I purchased a home on one of Palm Coast's salt water canals, in an area called "Sailboat Country." There are precious few sailboats there, but you could have one because there are no bridges blocking your mast and access to the Intracoastal Waterway. $385,000 bought over 3,000 sq.ft. of completely tiled living space on two levels, 30 ft. living room ceilings, tile roof, circular drive, a 50 ft. lap pool, a dock, and a killer view down a long canal... all just 10 minutes at minimum wake speed out to the ICW. Last year it appraised at $910,000. And, yes, this year would show a number significantly lower. It had to stop. If it didn't, the average home in Palm Coast would have been over $1,000,000 in a few short years. 20% appreciation each year will do that.

So where are we now? Do we compete with Newport Beach, CA? Not even. Half of their homes are selling for over $1,000,000, with some of the pricier digs up in the $10 -$20,000,000 "plus" range. And this is after they've endured a 44% drop in prices... whew.

Today's, 5/15/07, MLS data for Flagler County reveals:

* Since 1/1/07 (about 4.5 months) we have had 7 sales over $1,000,000. From a modest $1,020,000 to a top price of $1,850,000 for a 6,430 sq.ft. home on six acres in Sugar Mill (and it didn't even have a pool...). This represents 1.4% of the total 493 sales.

* Currently available for sale, are 166 listings over $1,000,000. They run up to a high asking price of $3,995,000 for a home in Island Estates at Hammock Dunes. This represents 5.6% of the total 2966 homes and condos now on the market in Flagler County.

* Also, the News Journal reported last week that a local custom builder had just completed a $2,500,000 model home at The Conservatory. That's the stratosphere for model pricing in Flagler or Volusia. I guess we are "Movin' on Up." Palm Coast real estate, along with Flagler Beach and the outlying areas... seems to be weathering this challenging market storm.