Charlotte County home sellers may have finally learned that the boom market is over — at least for now.
Supply and demand seem to be finding a new equilibrium in the Punta Gorda metropolitan statistical area, which also includes all of unincorporated Charlotte County, according to October existing-home sales figures released Tuesday by the Florida Association of Realtors.
Across nearly all Florida markets this year, housing inventory has piled up as potential sellers listed their houses at the high prices prevailing in 2005. But with more choices available, potential buyers have been able to shop for bargains, while leaving overpriced houses to sit on the market month after month.
As a result, sales volume in nearly all Florida metropolitan markets has collapsed this year, even while prices remained stubbornly high.
Charlotte County’s existing-home market has reflected these statewide trends until recently.
But October’s report suggests that Charlotte County may be providing a common-sense example to the rest of the state as local sellers adjust to changed market conditions and price their properties to sell.
The Realtors reported that 226 existing single-family houses were sold in Charlotte County during October. This compares with 225 sold during the same month in 2005.
Even more revealing is the fact that only 206 houses sold in Charlotte County during September. The 20-unit improvement, month to month, may not be dramatic but at least suggests that the local market has hit bottom and may be poised for a rebound.
While sales volume was stabilizing, sale prices were showing that a “market adjustment” is indeed taking place. Local real estate brokers have been urging prospective sellers to come down on their prices if they’re interested in selling their houses in a reasonable time.
Locally, October’s median sale price was $202,800, 17 percent less than $243,900 during October last year and about 2.5 percent down from $207,800 in September.
Prices have declined only gradually, but the October Realtors report shows that this trend is gradually picking up momentum in Charlotte County. For example, September’s $207,800 median price represented only a 10 percent drop from the local median price in September 2005.
The median price is a typical market price in which half of the houses sell for more, and half for less.
Charlotte County’s October performance was considerably different from the statewide trend, which still showed a typical 2006 pattern of no price adjustment, high inventories, and lower volume.
The statewide median sale price of $242,500 was essentially unchanged from $243,400 in October last year. Meanwhile, volume dropped 22 percent over the year-earlier month, from 16,407 to 12,773 houses.
Other Southwest Florida markets also showed price declines comparable to what occurred in Charlotte County.
* Sales of 604 houses in Sarasota-Bradenton represented a 24 percent drop from October 2005. But the median price retreated 18 percent, to $277,900.
* Naples, the state’s most expensive residential market, saw a 17 percent median price decline, to $420,000. Volume dropped 27 percent, to 204 houses.
* Fort Myers-Cape Coral reported 686 sales in October, up 36 percent from the 2005 month. Although Lee County suffered only moderate damage in Hurricane Wilma, the storm disrupted scheduled real estate closings for a large portion of the month.
By BOB FLISS
Charlotte Business Editor
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