Although the Charlotte County residential real estate market has reached stabilization, future sales will be affected by rising insurance premiums, property taxes and interest rates.
Danny Nix, who heads Realtors of Punta Gorda-Port Charlotte-North Port-DeSoto Inc., said it’s difficult to predict whether prices will continue to soften or rally.
“Insurance costs have almost tripled,” he said, adding that while would-be buyers might have the funds to purchase a home, insurance premiums could give them pause.
For waterfront properties in flood zones, flood insurance is required on mortgaged homes, and depending on the home’s elevation, it could be costly.
Then there are property taxes. In some areas of the county, waterfront properties with septic systems are being converted to a central sewer system, which comes with an assessment on the homeowner’s property.
Taxes in general are going up, and a growing population has necessitated the expansion of the county’s infrastructure, water treatment facilities, emergency services and related equipment, first responders and public projects to accommodate the growth.
Nix said those needing a mortgage may want to wait until the federal interest rate is lowered and banks and lending sources lower their rates.
With more than 1,000 people moving to Florida each day and new construction booming, higher prices aren’t dissuading those determined to live in the Sunshine State.
The market for waterfront properties and luxury homes is moving more briskly than homes in other price ranges.
One home on the Charlotte County side of Boca Grande sold earlier this year for $15 million. The more than 7,000-square-foot, five-bedroom, eight-bath home, which sits on 2.5 acres, was on the market for 39 days.
Other moderately priced homes in the $300,000 range are taking longer to sell in many cases, but this is probably because of a larger inventory in that price category, Nix said.
October sales for both single-family homes and condos were lower than September’s transactions but higher than a year ago.
For single-family homes in the county, there were 358 closed sales, up 77.2% from a year ago. The median sale price was $380,000, down 5.9% from October 2022 but higher than the previous month’s $364,900.
Sellers received 95.8% of the original listed price, and more than 36% of buyers paid cash.
There were 67 condo and townhome sales last month, which was down 26.4% from the same time in 2022.
The median sale price of $285,997 increased 4% from October 2022 but was lower than the previous month, which saw a median price of $297,332.
Sellers received 95.7% of the original listed price, and more than 62% of buyers paid cash.
In October, there was a 6.2-month supply for single-family homes and a 6.9-month supply for condos and townhomes, according to the Realtors association.
