Real Estate Trends In One of The Newest Cities Of Florida
Sunday, June 7, 2020, 6:00 AM | Leave Comment
When you’re looking for real estate market trends in a city as new as Palm Coast, FL you can expect a few surprises.
Considering the fact that the city was only incorporated in 1999 the only trends one can expect is consistent growth.
While a community did exist there long before 1999 the legislation did suffer a few changes with the incorporation that followed but the population didn’t have many reasons to relocate, move to another city or change their way of life.
Furthermore, the population has increased significantly recently, more than doubling during the last decade.
But what exactly can possibly new residents expect to find in the city of Palm Coast, FL when they venture into the real estate market of one of the newest cities of Florida?
Growth seems to be the word of the day and that growth can be seen in the real estate market of Palm Coast as well. The surprising part is that even though the population is growing which means that there is a steady need for housing and with that constant need speculation could make the prices inflate, there is no irresponsible increase in prices.
Housing prices have been steadily rising ever since 2012 but always remained below the average housing costs of Florida as well as the national average but we’ll see exactly why that is happening.
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Owning in Palm Coast, FL
For those looking at the real estate market in Palm Coast, FL and planning to purchase a home, it will not be difficult to find a home on the market. The housing market is plentiful and although 87.1% of housing is detached single-family two-story homes you can also find townhomes (4.9%), apartment complexes (2.2%) and high rise apartments (5%). All you need to do is call real estate agents in Palm Coast, FL and find your dream waterfront property.
As mentioned before, in Palm Coast housing is affordable. When comparing cities near-by, both larger and smaller than Palm Coast, you will see lower housing costs. Compared to St. Augustine, FL, a city with a much lower population, housing is cheaper in Palm Coast, FL by 36.4% and when compared to a much larger city like Orlando, FL, the housing is still more affordable by 14.5% in this medium-sized coastal paradise.
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Affordable real estate
Behind the significantly lower real estate prices in Palm Coast, FL there is a reason. While around 73.9% of real estate is owned property, we are left with 26.1% of properties which are rented. This isn’t the reason for the affordable pricing, however.
What exactly causes a much lower median price for real estate is the fact that around 15% of all Palm Coast housing is vacant. This means that there are many homes that are not used and this influences the prices. Luckily, the real estate market manages to stay balanced and doesn’t tip in favor of buyers or sellers but that is another element that does not work in the benefit of the real estate market.
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The health of the real estate market
In a hypothetical and ideal situation, you would have 10 houses for sale and 10 buyers. This would make the market grow with the economy, job market and be influenced by the actual value and not by the needs of the buyers or sellers.
The second hypothetical situation is when you have 5 houses for sale and 10 buyers. This tips the scale in favor of the sellers. As they have more requests they can ask for a higher price and sell to the highest bidder. As a result, there is an appreciation in the market and more investments going into developing new homes for the other 5 buyers.
The third and last hypothetical situation is when you have 10 houses for sale and 5 buyers. This is the situation in which we find Palm Coast, FL. In this case, the balance tips for the buyers, which is great if you are a buyer as homes are affordable. It isn’t so healthy for the market itself, however. With homes that don’t sell for longer periods of time, we have more vacant homes on the market. Those vacant homes can deteriorate in time which, coupled with a larger number of homes on the market leads to prices stagnating or, in some cases, even dropping. In other words, investments are risky in Palm Coast, FL because as there’s a low appreciation rate, homes can lose value in time.
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Real estate trends
For now, the situation is balanced and buyers can purchase property at affordable prices, but if the situation continues to deteriorate, short term investors may find themselves losing revenue instead of gaining. Palm Coast, however, is a good market for long term investments as the city continues to grow. With the median house price at $225,000 while the actual median value for a home is at $230,000, Palm Coast is staying afloat in the current economic situation.
Since 2019 the real estate market in Palm Coast, FL has seen a price increase of 3% which is slightly below the national average but it has been steady around 4% in the past. However, as the housing prices dropped in the first and second quarters of 2020 there has already been a decrease of 2% from the home prices at the start of the year. Further depreciation is expected to happen but the forecast only mentions a total of 2.1% drop in prices in a year period from March of 2020.
The market already shows signs of getting back on its feet. As Palm Coast is a coastal city in Florida, given its outdoor attractions and desirability, the real estate market should be able to correct itself relatively quickly. With the past steady appreciation rates, real estate in Palm Coast, FL can become a good long term investment and a healthy market once again.
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Renting in Palm Coast, FL
While the city of Palm Coast, FL is a very sought after destination for its honey-colored beaches and year-round sunny weather, the rental market isn’t very much influenced by this. With a percentage of only 26.1% rentals, the rental market in Palm Coast doesn’t behave like it should for a holiday city like this. If you look at other holiday cities throughout the state of Florida you will see a constant flow of snowbirds and vacationers, especially in the winter months.
The city of Palm Coast, FL is growing, is on the coast, is a tourist attraction, but the real estate market doesn’t show that. Let’s try and figure out why.
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Holiday City
This is where Palm Coast is different. While it does have a year-round warm climate and no snow in the winter months, it isn’t like St. Petersburg, breaking records for the most sunny days in a row. The weather in this East Coast Florida city isn’t breaking any records, for one.
Summer temperatures can get as high as 90°F but average at 85°F, while winters average at 71°F. Humidity is also high throughout the year but especially from April to November. The hot season has very low comfort levels because of that humidity. The only period when the comfort levels get higher as humidity levels drop is during January and February. It is also relatively cloudy compared to other destinations for snowbirds.
Conclusion
A city like Palm Coast, FL has a great badge of honor working for it when it comes to the real estate market. The fact that it’s one of the newest cities in Florida makes its housing market young as half of all homes in Palm Coast were built after 2000. That and the fact that it’s located by the eastern Atlantic shore are some of the reasons why its population grew as fast as it did.
Many people love to have the possibility of walking on the beach barefoot, with sand seeping through their toes every morning while they enjoy their coffee. It doesn’t seem half bad to me either. If that’s something you would be interested in, the housing market in this coastal paradise has a large majority of single-family homes available for renting or buying.
Let us know in the comments if the city of Palm Coast, FL won you over as more and more people choose it as a place of residence for their families. Like & Share with your friends and family as this coastal paradise welcomes new buyers with open arms and affordable housing.
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