Price Trends
Sales of existing homes in Florida fell 34% in August, 2006 from the same period in 2005. At the same time, inventory is at an all time high, making for a “Buyer’s Market€ in all sectors of real estate. Single family homes, condos and vacant land or lots are remaining on the market for longer periods and buyers have the upper hand in negotiations.
While southwest Florida is seeing all of these trends, it is not as deeply felt as in other parts of the state. Orlando reported a 35% sales decline while Tampa – St. Pete sales were down 42%.
In a departure from the trend in existing home sales, new single family home sales rose 4.1% in August, 2006. While this unexpected increase raises hopes for some, there is a side to this statistic that seems to be uninvestigated. Many home builders had (and still have) a large inventory of unsold homes. In an attempt to reduce this burdensome inventory, builders have slashed prices and in many cases sold at a loss to reduce overhead.
When buyers shopping for a home compared the price of a new home to the price of an existing home, it became a simple choice. New homes come with warrantees and often, special financing plans. Sellers of existing homes, reluctant to reduce prices, are increasingly in a less competitive position. Until builder’s inventories are under control, existing home sales and prices will suffer.
In Rotonda (Rotunda) and Englewood, FL, many builder models and investment homes are for sale at great prices. On Oct. 1, 2006, Andy and I showed customers several of these in Rotonda (Rotunda) West at prices much lower than only six month ago. We say several between $375,000 and $440,000, all with pools and very nice appointments. These homes could easily be rented to seasonal guests for $800 – $1,000 per week or $3,000 to $3,800 per month.
Visitors from Great Britain and mainland Europe are especially fond of Rotonda (Rotunda) West, with its fine homes, great location, many golf courses and proximity to Englewood Beach. The strong Euro and British Pound make it a bargain to purchase a seasonal or investment home in the area.
Port Charlotte, FL and Punta Gorda, FL are also seeing price reductions and buying opportunities. A high inventory of beautiful pool homes in Port Charlotte, buyers can pick and choose. Sellers, eager to make a deal, often agree to pay closing costs and other items.
In Punta Gorda, FL, there is a surfeit of waterfront homes being offered for sale. Our agent, Bill Ogden, reported a former waterfront model being offered for $540,000. This home was constructed by a prestigious builder with all the upgrades. It is on a large lot with 80 feet of waterfront seawall and fast access to Charlotte Harbor and the Gulf of Mexico. It has a beautiful pool and large garage. It is a three bedroom home with 2 and 1/2 baths and much, much more! The asking price represents more than $100,000 off the original price.
This is only the tip of the iceberg so to speak. Interested parties can use the links below to access the local MLS systems through our website. Buyers can search by map or they can choose features and locales.
Search the Southwest, Florida MLS
If you have questions about property in this area, please call or write:
Jim Mulligan (941) 456-3034
Andy Leonard (941) 662-0033
Questions questions@suncoasteam.com
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Real Estate For Sale In Southwest Florida, Florida
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Buying and selling real estate in southwest, FL, including Rotonda, FL (Rotunda), Port Charlotte, FL and Punta Gorda, FL.