Southwest Florida Real Estate Sets Records For Fifth Straight Year, But Cooling Slightly

In what has been the fifth consecutive record-setting year for the Florida home loan market, few places in the state saw greater sales and price appreciation than Southwest Florida.

In the 12 month period ending November 30, the median sales price for existing homes in Charlotte County, Englewood and North Port lept 41 percent, from $167,700 to $236,900, according to the Florida Association of Realtors and the University of Florida Real Estate Research Center. The Charlotte market was not far behind the Fort Myers-Cape Coral area, which experienced a 49 percent jump in median price to $295,400 over the same 12-month span.

• By comparison, the median sales price rose 31 percent over the past year across Florida. The Sunshine State’s median home used to cost $191,300. Now, $250,500.
• Nationally, the median sales price was $216,200 through October, up 16.6 percent from a year ago, according to the National Association of Realtors.

The median sales price is the official midpoint figure. In other words, the amount at which half of all homes sold for more and half for less. While many South Florida real estate markets look as strong as ever, with prices continuing to soar, the blistering pace of local home sales has cooled considerably. In November, 15 percent fewer home sales were reported in the area than in the same month of 2004.

Nancy McClary, broker associate with Coldwell Banker Morris Realty and one-time president of the Punta Gorda-Port Charlotte-North Port Association of Realtors, said the current drop in activity is not only expected, but healthy - and extremely temporary. She expects the market to heat back up in the coming months, with no major dropoff in prices or pace.

“The market is definitely seeing a slowdown,” McClary said. “But it’s really just pausing to catch its breath, and that’s a good thing. There are very few buyers right now and there’s a large inventory of available homes. But this is just a plateau.”

Despite moderate gains in the past few months, Florida home loan rates are still significantly lower than they have been historically. There will still be strong demand among buyers, and the migration factor - people up north are retiring, not to mention experiencing staggering heating bills (and the winter blues) - is starting to kick in. Most Florida real estate markets are strong as it is, but the ace in the hole continues to be the weather.

“As long as we have the sun and they have the snow, they will come,” McClary said.