PGI/BSI Real Estate: Is the Market Back in Boom?

Nine years ago, real estate in Punta Gorda was booming. Home sales were up all over Florida. Then, like the rest of the country, we hit a blip. Real estate fell. While we never had it as bad as some areas, 2006 was a lot quieter around the office. Many speculated on whether the market would ever come back. Skepticism was understandable. In 2012, lines started lighting up again on our buyers’ agent’s phones. It felt like we had made it out of the fog and back into the sunshine. Yet, real estate markets are about more than what we feel as agents. The best way to discern what is going on in the market is to look at the numbers.

PGI/BSI real estate annual pending contracts

 

Back in the pre-recession days of 2004, PGI and BSI developed 337 pending contracts. (A pending contract indicates that buyer and seller have reached a formal, written agreement.) The next year that number dropped to 201–a 40% drop. 2006 and 2007 were dismal, but then you see a little upswing in 2008. For three years, the numbers stayed steady. Then, the market jumped. You see a 53% increase between 2011 and 2012.

Interestingly, the difference between the number of contracts in 2004 and 2012 is a mere 12.5% decrease. Last year looked much more like those boom days than it did the seven previous years.

For more insight, the following chart shows monthly averages and total pending contracts month by month. What you learn from the chart is when we traditionally see the most activity in the Punta Gorda real estate market. Keep in mind that over the past three years, the average number of days a listing has stayed on the market has hovered around 230 days or 7.5 months. With this information, you can estimate that many of the 290 listings, which went under contract in March, listed their homes in the fall of the previous year.

PGI/BSI real estate monthly pending contracts

 

Overall, these charts can only tell you where the market has been. No one can predict the future. As agents, we try to arm you with the best information we can, so you can make the right decisions for you and your family.

Comments are closed.