According to Forbes Magazine, cities throughout Florida and especially in Southwest Florida, are showing steady increase in home prices. After experiencing rapid increase in real estate prices through the first half of the 2000 decade, home prices in most parts of the US fell dramatically. Florida made headlines as one of the areas experiencing the greatest increase then decline. Now it appears, the area is seeing a stabilization and returning to more sustainable appreciation rates.
Home prices in the Punta Gorda market showed an increase in median sale price of 1.9% in the second quarter of 2011. In Fort Myers the increase was 3.8% and in Sarasota the increase was a surprising 6.7%. In normal times, an appreciation rate of 1% – 3% can be expected.
While the real estate market still has quite a way to go to recover, this is encouraging news. No reasonable person would expect 2006 prices anytime soon, but the continued removal of problem properties will certainly have a strengthening effect on prices and stabilization. Southwest Florida should remain a “buyer’s market” throughout the next year, but those who think they can wait for prices to fall even more should reassess their plans. Likewise, those who think they can make a “low-ball offer” are often losing out to others with more reasonable expectations.
The best approach one can take is to first decide where they will be happy living (or investing). Once that decision is made, take your time, look at a number of homes in your budget and slightly above. You should look at homes slightly above your budget to be sure that you are not missing a great deal and to see what that figure will buy. You will quickly spot the nicest homes and best deals. Pick the best two or three and make an offer on your first choice. If it is a reasonable offer you’ll have no trouble sealing a deal.
Forbes Magazine list of “America’s Recession-Resistant Cities For Real Estate.” https://www.forbes.com/pictures/mhj45eled/recession-resistant-cities/
Forbes/Zillow measure of home, condominium and apartment appreciation in Florida cities (the number associated with a city is its rank nationwide):
Number 2, Fort Myers, Median home price: $126,100, Second quarter increaseL 3.8%
Number 7 Sarasota, Median home price: $143,000, Second quarter increase: 6.7%
Number 24, Punta Gorda, Median home price: $116,600, Second quarter increase: 1.9%