PGI/BSI Real Estate: A Look Back at the Last Six Months

PGI sign

In real estate, buyers and sellers often ask us to predict the future. How long is this trend going to last? Should I buy tomorrow or next month? What are home prices going to do? Unfortunately, we can’t say for sure. The best we can do is look at the past.

The chart below compares homes sales in PGI/BSI over three 6-month periods.

Comparison of Home Sales Exclusively in Punta Gorda Isles and Burnt Store Isles

Over Three 6 Month Time Frames

1/6/2010-7/6/2010 1/12/2012-7/12/2012 2/1/2013-8/1/2013
Total Number of Sales 122 170 175
Average Sales Price $354,851 $340,908 $358,187
Average Seller Negotiation 7.5% 6.78% 5.5%
Average Days On the Market (DOM) 231 227 233

What does the chart imply?

First, there seems to be significantly more buyers out there today than there were three years ago. As you know, every home sale requires a buyer. While PGI & BSI only had 122 home sales in the first half of the 2010, in the last six months there have been 175 sales. That is quite a jump.

While the numbers of buyers went up in 2012, the average sales price went down. The most obvious way to increase sales is often to drop prices. Perhaps that was the theme of 2012, but in the early part of 2013, sale prices went back up and buyers stayed with them.

More buyers equal better negotiations. While the number of days on the market has sat at about seven and a half months, sellers have been negotiating sales closer to their asking price. If you listed your home in PGI or BSI back in 2010, you could expect to take a 7.5% cut off your asking price. Recently, that number has dropped to 5.5%.  Will it continue to drop? Will groves of new buyers come to town? No one can say. Every sale is different. However, it does seem that lately buyers and sellers are negotiating from a more even playing field.

We can tell you this: It is much more enjoyable to look back at the numbers of the last six months than it was back in 2010.

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