.lm Coast Lot Market
I am a condo broker, and rarely venture to other types of properties, especially outside of my core area. Actually, Pam Cost is part of Greater Daytona area, but this is not the reason I am writing about it. I thought that looking at rapidly changing land values in Palm Coast is yet another way to gauge the market.
For years and years the number of vacant lots for sale in Palm Coast, 25-30 miles north of Daytona/Ormond Beach, was very close to 1,000. Yes, the prices started inching up a bit in the last few years, and there were no longer $6K, $9K, $12K prices anymore, but a year ago the starting prices were $15K – $18K a lot.
At one point we decided to sell one lot but were too busy and dragged with listing for several months. The idea was to sell for somewhere between $20K and $25K. When we finally sat at the computer to list it, we could not believe our eyes. The prices were much higher, hitting $40K. They literally doubled in a matter of 3-4 months.
I called a friend of mine, a broker in Palm Coast, and asked him what was happening, and he confirmed that the market was going crazy and the number of lots for sale dropped from about 800 to 360 in a matter of 3-4 months. Actually, houses also were going crazy in Palm Coast…
In the next couple of months, the number of lots on sale fell below 200, and prices went up even more. New listings for regular lots, not on the water, reached $60K and even higher…
It was clear that there would be a flood of lots coming for sale from the owners, who were waiting for this moment, and that exactly what happened. The number of lots slowly went up to about 250 and is staying at this level for the last month, with a lot of activity. There are currently 268 lots under contract, starting from $18,500, the price which is already unimaginable now…
When these under contract deals close, higher priced lot will be filling the market. For the last month the median price of a lot was $60K. Hardly anyone believed a few years ago that this price could be achieved. Peak prices of 2005-2006 reached $75K a lot, and seems we might beat these prices rather soon.
Vacant land market in Palm Coast is changing fast. Today the median price for Pal Coast lot is $67K.
Gurus are saying that the market resembles 2003 before the Real Estate explosion. The way it looks now, we may beat the previous peak and go higher than $75K for a lot.