According to an Ormond Beach broker, home sales in the area dropped by 12%, although they remained higher than pre-pandemic levels. Meanwhile, a real estate agent in Palm Coast reported that sales remained consistent over the two years.
The statewide trend revealed an overall increase in the inventory of existing homes for sale in Florida in 2023, but the actual sales of single-family homes decreased by 10.3%, as stated in a press release from Florida Realtors.
Florida Realtors Chief Economist Dr. Brad O’Connor attributed the challenging year for residential real estate in 2023 to rising interest rates. Despite the state’s robust job creation and an influx of families, these factors were insufficient to prevent a decline in home sales.
In Ormond Beach, broker Bill Navarra mentioned that interest rates rose to almost 9% in 2023 but noted that the local sales market remained exceptionally strong. With interest rates now receding, he expressed optimism about a positive market in 2024 for Volusia and Flagler County.
The statewide median sales price for single-family existing homes at the end of the year was $410,000, marking a 1.9% increase from the previous year. In Ormond Beach, the average cost of a three-bedroom, two-bath home with a three-car garage was $399,000.
In Palm Coast, real estate agent Toby Tobin reported a stable market, with a slight decrease in the median home price from $369,900 to $365,000 in 2023. The number of homes sold also experienced a modest reduction from 3,012 in 2022 to 2,867 in 2023.
Both Navarra and Tobin highlighted the ongoing issue of low inventory in Palm Coast and Ormond Beach. Despite an increase in available lots, the ready-to-sell inventory remains insufficient. Tobin acknowledged a slight drop in interest rates but anticipated them to hover above 5%. Navarra emphasized that, despite challenges, the real estate market in Volusia and Flagler County continues to thrive, showcasing the area’s desirability on the East Coast.
