Posts Tagged ‘Punta Gorda Real Estate’

Get inside that home you love online without leaving your house

Monday, March 23rd, 2020

Virtual tours are some of the best real estate tools of our time. Most buyers fall in love with the online version of their next house first. The next step is to get inside and see the details. But what if you can’t get down here to see the house you love online? The Andreae Group’s got you covered.

Importance of Days on Market (DOM)

Wednesday, November 4th, 2009

I keep hearing that a house has been on the market for X number of days so that makes it a better or a worse deal.  In our market, I will disagree with that assumption.  In fact, Days on Market (DOM) has become less of an indicator of a home than almost any other statistic.  There are homes that have been on the market for 1300 days that are better deals and better homes than ones that have been on the market for 13 days.  I know that this flies in the face of conventional real estate wisdom but it is the reality in the Charlotte County real estate market and I will explain why.

In the past, a home that was on the market for 100 or more days was regarded as “passed over” by the first wave of buyers.  When I lived in Kansas City, this was especially true.  There were numerous neighborhoods that were seen as upgrades/downgrades to other suburbs in the area.  When a new listing would come on the market in neighborhood A, potential lookers from neighborhoods B, C and D would swoop in after work or on the first weekend to look at the new listing.  If it was a good house for a good price, the property would sell.  If not, it meant that the pool of “active” lookers had been drained and now the house was a reliant on another set of less active buyers which was not good.  Our Charlotte County market never quite hit that profile because most of our buyers are from out of the area.  They are typically from Illinois, Wisconsin, New Jersey, Missouri, etc…  When a new listing hits the market, it takes weeks instead of days to get down here.   We have always been more reliant on a potential buyer coming down for 3-7 days, looking at the market and buying the best property for the best price during those 3-7 days.  With our buyers coming from out of the area, they tend to look at the whole market during their time here.  If a house has been on for 1,000 days or 10 days, the potential buyer is going to look at both because they were not here 1,000 days ago.  Both properties are new to them so the one that is priced the best and shows the best will be more attractive. 

The price slides of the past 4 years have put a high number of DOM on some of our seller’s properties.  If they priced the house a little high or even correctly in 2006 but it did not sell in the first 2 months, they were then too high because prices were dropping an average of 1-2% a month (thank gosh that that has leveled off).  Correctly priced homes were too high just 2 months later and if they did not continue to drop their price monthly, the DOM grew higher and higher.   Many of those sellers have now started to accept the market and made big price adjustments.   The DOM is high but the property is not any less desirable – they just did not have the right buyer fly in during their month of correct pricing before the market started a slippery slope downwards.

Long story short – do not let DOM determine whether a house is good or not in our local real estate market.  Some of the ones with high DOM are not well-priced, do not show well and are basically dogs.  However, some with high DOM represent motivated sellers who have been hit hard by the market and are now ready to make a deal.   Which of the two sellers do you think will be more negotiable – the one who has been on the market for 500 days or 5 days?

Learn more about Punta Gorda real estate by visiting our website.

It’s Beginning To Look A Lot Like ‘Season’

Wednesday, October 7th, 2009

Get ready for more listings on the market.  As sure as the sun comes up in the east and sets in the west, the Charlotte County real estate market sees an upward spike in listing inventory every October and November.  It is already starting in Punta Gorda Isles and Burnt Store Isles.  This “spike” has nothing to do with current market conditions.  It occurred in 2003, 2005, 2006, 2007, 2008 and it is already starting this year.  If you notice, I left out 2004 because it did not occur that year due to Hurricane Charley.

I believe that the reason that this happens every year is threefold. 

The first reason is that the snowbirds start to come back to the area in October and November.  Many of these snowbirds were on the market in the spring but did not want to leave the house on the market while they were up north or leave it on the market with the hurricane shutters in place.  There are also a number of them that have decided to sell due to health, financial or personal reasons. 

The second reason that we see a spike in inventory is that many sellers believe that the prime selling season is about to start so they want to have their property on the market at the beginning of that “prime” season.  History has shown that similar amounts of properties go into Pending in the summer as in the winter but that is not the perception so many wait until the late autumn to put their house on the market.

The third reason is simply that September is typically the weakest month for sales in Charlotte County.  With September typically being the slowest month, less homes leave the market due to sales. 

The combination of returning snowbirds, the perception that the “season” starts in November and September’s usual slow sales has resulted in an inventory spike in October/November every year that we can remember (aside from 2004).  It has already started this year as well.

Visit our website for more information about the Punta Gorda area or Punta Gorda real estate.

Is it possible to get financing these days?

Thursday, September 24th, 2009

A common theme that I am hearing when visiting people who are considering listing their homes is that they do not think that they should list their homes now.  They feel that it is pointless because “no one can get a loan”.  I believe that this thinking is totally incorrect. 

I agree that there are many news stories on the TV and in national publications (magazines and newspapers) talking about the difficulty that the lending industry is facing and the difficulty that some buyers are having getting loans.   However, obtaining loans is not a problem at all in today’s market IF AND ONLY IF the buyer can meet the big 4.  For people who bought homes prior to 2000, the big 4 are not going to be a surprise.  For people who only bought during the 2000’s or got used to the lending practices of the past decade, the big 4 may be a shock.  The big 4 are:

  • the buyer must put 20% down
  • the buyer must have good credit (I did not say great)
  • the buyer must have income to support the loan (make more than the monthly payment that is going to be due)
  • the property must appraise for what the bank is lending

These are not shocking and I would imagine that most reading this would agree with these 4 if they were a bank officer or considering seller financing themselves.  The notion of “no loans” has occurred because potential buyers got used to the following phrases (how many have you heard):

  • No money down
  • 110% financing
  • No documentation (this was always my favorite – here is $400,000 but we are not going to check anything)
  • 1% interest for the first 3 years

These policies created a lot of loans because the banks believed that the market would always go up so even if they gave a loan to a person who would default, they would be able to sell the property for a profit.  Unfortunately, this did not work out so well.  Now, there are many foreclosures and bank losses.  Lenders have gone back to safer lending standards but by no means are the standards tougher than the 1990’s.  Banks make money by lending.  Mortgage brokers and loan officers support their families by making deals happen.  There are a lot of people and companies with incentive to loan money…. but they want to lend to people meet the big 4.

Please contact us if you are interested in learning more about Punta Gorda real estate or visit our website to review neighborhoods or view available properties.

Has Punta Gorda real estate hit bottom?

Tuesday, September 15th, 2009

I was recently asked if we have “hit bottom”.  I don’t think that there is a more loaded question for a Realtor.  If I say “Yes” and the market drops in 5 months, I look like a misguided fool and if I say “No”, I am called a pessimist who does not believe in the product (the local real estate market).

However, since I like to live dangerously, I am going to address the question.  I think that we have hit a leveling off period which may be the bottom of this drop.  The number of actual sales in Punta Gorda / Port Charlotte in 2009 is much higher than our number of sales in 2006, 2007 or 2008.  There are more deals happening which is good in two ways.  First, it helps to reduce inventory.  Less inventory means less competition from other sellers which means less pressure to reduce pricing.  The second benefit of more transactions is simply a building of consumer confidence.  It is becoming “all right” to buy real estate again.  For 2-3 years, buying real estate was not seen as a wise move.  Now, however, the statistics say that more people are buying real estate.  The summer is not typically our busiest time of year.  However, this year’s summer was busy.  If that continues through the winter and spring, we may be a much healthier market in May 2010.

Two positive sidenotes:

  1. Money magazines article ranking our area as the number one place to retire brought positive press to our beautiful area
  2. There have been many articles in Forbes magazine, the WSJ and others suggesting that real estate is one of the best hedges against inflation.  Good or bad, many of the people that I am talking to think that inflation is coming.  If it does, there are countless advisors saying “Get into Real Estate to protect against inflation”.   If we are going to have inflation (which I am not rooting for at all), at least I am in an industry seen as a hedge.

Visit our website to learn more about Punta Gorda real estate. You can search the Punta Gorda MLS or  read about Punta Gorda area neighborhoods. It is a one-stop resource when buying or selling Punta Gorda property.

Punta Gorda/Port Charlotte Board of Realtor Stats

Monday, September 14th, 2009

They say that statistics can paint any picture, any color depending on the interpretation.  I will do some of my own hypothesizing of the Punta Gorda/Port Charlotte/North Port Board of Realtors statistics released last week.  

There are some interesting numbers.  For example, within the Board covered area, there have been 2,030 single family home sales through August 31st.  This is way off of the totals for 2005 but is 230 more sales than at the same date in 2008.  More sales are better than fewer sales because it means that more buyers are taking the plunge and hopefully, inventory is being reduced.

Some other interesting parts of the data:

  • 2,030 single family home sales through August 2009 (better than last year)
  •  Only 5 of those 2,030 were at sale prices higher than $700,000 (not good for sellers asking high dollars)
  • 211 of the sales were between the small sale price range of $100-$119,999 (no wonder the median price for our area has dropped so dramatically)

This data is for a wide geographic area so PGI/BSI only make up a fraction of the data.  However, sometimes it is good to look at the stats for the entire area.   View the PG-PG-NP August 2009 Stats here.

Who’s Buying Punta Gorda Real Estate These Days?

Tuesday, September 8th, 2009

We have seen a bit of a shift in the type of buyer for the Punta Gorda – Port Charlotte market buyer over the past year.  I do not think that this is a long-term/permanent change but it has definitely affected our sales somewhat.  In the past, a percentage of our typical buyers were “snow-birds” or seasonal buyers.  These were buyers who would come down to our area and buy a home or condo to use during the cold winter months up north.   Typically, they would arrive in November and leave in April.  Our market still has many of these property owners.   Unfortunately, over the past year, that number has not grown much.

The percentage of sales to end-users (full-time residents) has risen in comparison to the snow-bird buyer.  This is due simply to the national economy.  A second home/seasonal purchase is a discretionary expenditure.  We all may want a second or third home but none of us NEED it.  With the economy as uncertain as it currently is, many of the potential snow-bird buyers are telling us that they are going to wait a year on the sidelines and rent for a season until they know how things are going to shake out.  Many have the resources and desire to purchase a property in Punta Gorda/ Port Charlotte but are nervous about their retirement accounts or how long that they will continue to be employed.  With concerns like those, it is easy to understand why they are not jumping into a large discretionary purchase.

A positive aspect to this is that the seasonal rental market is stronger.  When talking to rental agents or investors who have seasonal rental property, they have all stated that their inquiries are up this year and that they are holding much tighter on prices.  That is good for our market because it shows that we are still a desirable place.  When the national economy stabilizes, I am hopeful and expectant that many of these “on the sideline” potential snowbirds will turn into buyers and provide a boost to our overall market.

Visit our Punta Gorda Real Estate website for more information on the Punta Gorda/Port Charlotte area. View available listings, read about neighborhoods or learn about our lifestyle.

Punta Gorda Market Update-September 2009

Wednesday, September 2nd, 2009

Sometimes it truly does depend on how you look at the situation to decide if it is good or bad.  The Punta Gorda Isles/Burnt Store Isles (PGI/BSI) real estate market has good news, bad news and some that I am not quite sure is which. 

Transactions in Punta Gorda Isles and Burnt Store Isles are definitely up.  There are simply more buyers buying properties which is good for any market.  Whether the buyers are back due to pent-up demand, lower prices, more confidence in the economy, or lack of any real hurricane threats is anyone’s opinion. 

An example of the up tick in transactions certainly can be seen in Burnt Store Isles.  In 2008, there were 24 single family residential homes sold.  Through September 1 of 2009, there were 24 single family residential homes sold with 6 currently in Pending.   With 6 in Pending and 4 more selling months, there will certainly be more homes sold in Burnt Store Isles this year than last.

However, this up tick in transactions has not resulted in appreciation.  I believe that this is due to the still very high amount of properties for sale (inventory).  In August 2008, the average sale price in PGI/BSI was $414,856.  In February 2009, the average sale price was $379,765.  In August 2009, the average sale price was $359,780. 

Good news – more sales due to more buyers
Bad news – prices still dropping due to very high inventory

For more information about the Punta Gorda Real Estate market, visit our website. You can view new listings by neighborhood, see all available properties organized by neighborhood, search all properties available in Charlotte County or even view Just Sold reports for many area neighborhoods.

Unofficial End of ‘Season’ for Punta Gorda Real Estate?

Sunday, April 12th, 2009

Easter weekend, for many people, marks the unofficial end of ‘season’ for many snow-birds and soon-to-be snowbirds. However, our stats show that the ‘season’ doesn’t directly correlate to any real estate seasonality that may occur. Historically, as many homes sell during the summer as they do during the winter months. Late August and September tend to be our slowest months with an uptick seen in October.

Punta Gorda Lands in Top Ten Again

Tuesday, October 7th, 2008

Well, we did it again.  Punta Gorda made its way onto another Top 10 List.  This time U.S. News & World Report named Punta Gorda as one of the top 10 “Best Healthy Places to Retire”.  As a matter of fact we were the only city named in Florida (and actually the whole southeastern United States)! You can view the article at the US News and World Report website.

Aside from this recent recognition, Punta Gorda has been named in many other national top ten lists. Other lists have included Money Magazines “Best Places to Live” (1997& 2003). Forbes places us #5 on the “Best Places for Businesses and Careers” list in 2001. MSN House and Home ranked us #4 in 2003. In 2005, Golf Digest recognized the great opportunities we have for golfers and ranked Punta Gorda #3 on their list of best cities for golf in the country. Sail magazine has ranked Charlotte Harbor as the best boating in Florida.

Contact The Andreae Group or visit our Punta Gorda Real Estate website for more information.