Observations in Palm Coast, Knoxville and Dahlonega

During our most recent research trip, we journaled the following Florida market conditions in Palm Coast:

• Many master planned communities are still distressed. We noticed a pattern of distressed master planned communities who required no time to build Palm Coast homes. Vacant lots with utilities stubbed out situated side by side with a completed home every now and then. We observed community clubhouses not maintained or felt abandoned.

• We found quality residential master planned communities extremely undervalued. Established communities with lifestyle amenities, infrastructure and homes built. Buyer's do not need to comb through the MLS for distressed properties, short sales and foreclosures which are difficult transactions. Quality property, financing and generous incentives are available directly from Palm Coast real estate developers.

• Residential master planned communities with bad press are alive and well. We observed a number of residential master planned communities who had bad marketing strategies or sister communities in default creating negative press for other related projects. The ‘bad press’ communities we visited were well maintained, property owners and staff appeared happy. Private Florida golf courses were open to the public.

• Private golf courses open to the public. Clubs have opened up prestigious golf courses to the public which was unheard of years ago. A smart move because it introduces the Florida golf community to potential buyers and generates needed revenue for the club during these tough economic times. It takes cooperative homeowners in a master planned community to make this possible.

• Promising developments patiently wait for a new leader to appear. We noticed residential communities with a small number of Palm Coast homes built, infrastructure in place, amenities in place yet without a visible sales and marketing team. We see these developments as great values to buyers today before a new leadership appears and re-prices the development.

• Condominiums are the red headed step child. (We’re Irish so we can say that and not take offense) Many Palm Coast real estate developments have scratched condominiums completely from their development plans or halted existing construction. Financing for condominiums is like finding a needle in a haystack and has made matters worse for these type of homes. Pricing has fallen quickly and we are not sure where the bottom is for condominiums. A technical oversupply exists.

• Even experienced builders over improve properties. We noticed Palm Coast homes built and priced well above neighboring homes. This mistake spells financial loss. Home values rise together and a home over improved will unlikely bring in a higher price than competing neighboring homes when buyers have an abundant supply to choose from.

We will keep you posted on the Florida market conditions. Let me know if you notice a particular trend worth sharing. Write us at info@communityfinder.com.