Southwest Florida Sees Residential Real Estate Prices Ease
According to the Business Times, Florida’s west coast, including the areas of Sarasota, is seeing the biggest home price declines since the Great Recession of 2007-2008. While prices are still rising in some parts of the country, prices in southwest Florida and parts of the southeast are falling compared to a year ago. This, according to data from the National Association of Realtors (NAR) which surveyed 226 metro areas.
No region in the country is seeing a greater decline than in this region. The Punta Gorda metro area (about 50 miles north of Sarasota), led the decline with the greatest drop in residential real estate prices since 2011, with the median price falling 6.5% compared to last year.
In the North Port-Sarasota-Bradenton area, prices fell by 5.8% compared to last year, also the greatest drop since 2011.
In the Cape Coral-Fort Meyers area, prices fell 3.7%.
And in the southeast part of the state, prices are also dropping. According to Lawerence Yun, chief economist for the NAR, “Prices in the southeast are also under pressure due to more inventory, higher insurance costs, and more homebuilding.”
In addition to general economic conditions, Tony Barret, President of the Realtor Association of Sarasota and Manatee pinned the weak real estate market to the effects of recent hurricanes which delayed some sales and hindered buyers’ confidence. Additionally, the supply of homes has been rising. And when supply is up and demand is down, prices must fall in any market, including real estate. It also appears that there are now fewer buyers seeking investment properties.
With this said, it is a relatively rare event that prices fall in southwest Florida. A wise, prospective buyer might consider that this is an opportune time to seek a home or investment property. In essence, catching the market in southwest Florida during a rare dip in prices could prove a smart move, if the history of the southwest real estate market is indicative.