Home Price Trends in SW Florida - 7/2006
After steep increases in prices for vacant land and homes in Southwest Florida over the past three years, prices have stabilized and are beginning to come down.
An analysis of listed properties and sales over the past several months show a steep increase in available properties and much longer time on the market before they sell. In some cases prices have fallen dramatically and if this trend continues, we could see price reductions of 10% or more. In this section we will discus home prices.
Over the past three months we have seen the number of homes of all types and sizes actively being marketed in the Punta Gorda / Port Charlotte area has hovered around 2,900 homes.
To perform our analysis, we tracked listings and sales in the Punta Gorda and Port Charlotte area. While we examined all home sales, we felt that using a standardized model most popular with buyers would give the most representative figures.
Our standard home is a 3 bedroom, 2 bath, 2 car garage home between 1,500 and 2,000 square feet and not on any waterfront. We separated pool homes from those without pools for our numbers. (If you are interested in a different type of home in a different area, we will be happy to provide a report specific to your needs)
On July 15, 2006 there were 182 standard pool homes (as stated above 3/2/2, 1500 – 2000 s/f) listed with a median asking price of $284,900 and 250 standard non-pool homes with a median price of 249,900. In June, 2006, the median asking price of a pool home in this area was $289,500, (184 available) and no pool, $249,900 (250). The May, 2006 numbers are Pool: $299,900 (217), no pool: $249,900 (280).
In the month of June, 2006, 17 standard pool homes sold with a median price of $245,000 and 16 non-pool homes with a median price of $220,000. (Note: These are closed sales for which we have solid numbers. That means that the sale was negotiated on average two months prior to closing. All indications are that people are negotiating lower prices today)
This is a huge difference between asking and selling. Moreover, there is a large inventory of homes. Of the 217 pool homes available in May, only 17 closed in June. Only 16 of the 280 no pool homes closed.
This means that Port Charlotte and Punta Gorda is still a bargain if you shop around. When a seller is reasonable and a buyer is knowledgeable, a fair transaction can be arranged.
Timing is the key. If you are buying an existing home, you are probably close to the bottom of the market. This is the time to shop and negotiate a great deal. Home pricing is dependent upon replacement cost. A resale home will never cost more than a new home. There are great deals out there. All you need is a broker who will work for you.