An interesting trend has developed over the past few months in Flagler County real estate. Sales prices are still up, but the volume of total real estate sales has declined consistently for several months (see graphic below). This begs the question, how long can this trend continue before a correction occurs? See below for 5 additional data points that Flagler County property owners, buyers and sellers should all be aware of.
One could say that Flagler’s real estate market has been “flat” (see the green line above) since 2020 or 2021, in terms of the total dollar value of sales. That’s a multi-year perspective. However, the short-term perspective is Flagler’s real estate market (in terms of the total value of monthly sales) has been cooling off for several months (see the red line above).
More concerning, further analysis by the Chamber shows Flagler’s real estate “slow down”:
- The total number of closed sales, compared to last year, has declined significantly, most months (sales down 13% year-over-year and a whopping 42% in November 2022.
- Cash sales are down 18%, year-over-year.
- The market is forcing sellers to accept less than asking price every month, since July 2022.
- The “median time to contract,” which tracks how fast a home sells from its listing date, has grown from approximately two weeks in the summer of 2022 to now more than a month (November 2022: 38 days).
- The number of homes available to purchase has dramatically increased every month since May 2022. This means fewer homes are selling and more competition in the marketplace is forcing sellers to wait longer to find a buyer or reduce their home price.
The above analysis is supported by the Flagler County Association of Realtors November 2022 Report, which can be found below.
In conclusion, it’s clear that Flagler’s real estate market is being adversely impacted by national economic headwinds, including both the rise of interest rates by the Federal Reserve and the inflation. It’s hard to believe Flagler’s Real Estate slowdown will not continue into 2023, but only time will tell.
The Chamber will continue to provide facts and data to our members in the coming months. Tracking Flagler County’s real estate market is extremely important to the overall economic health of our communities and local governments.