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Q: What is happening in the real estate market and do you think it is going to crash?

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A: I don’t think there is anyone who wasn’t aware how hot the real estate market was since the beginning of Covid, and the frenzied buying characteristic of that time. I’ve often wondered, “Why do humans panic so much, and who started the fear and supplied the response to that fear?” I’m sure many a forest was cleared to produce the paper needed for the consumption of toilet paper that was purchased. And what about hand sanitizer? With hurricanes we see water flying off the shelves and gas being purchased in amounts that could sustain a small town, let alone a single family. This is what happened with the housing market. Someone “Started the fire” as singer Bill Joel wrote in his song, and before you know it the real estate market took off to heights seldom seen before. Now that we’ve all taken a breath and realized Florida isn’t closing its borders to people looking to relocate from the north to purchase a home, we are all settling back to the normal real estate trends. We typically see fewer buyers this time of year as people are just starting to return from their summer getaways, and children are engrossed in school activities. The start of the typical “hot seasonal market” starts in January and runs throughout the late spring and early summer. The slowdown you are currently seeing with fewer buyers in the market is a stark contrast to what we’ve seen with the panic buying the past couple of years, but the sky isn’t falling.

 

Yes, interest rates will play a role for some, but keep in mind those that purchased homes the past few years paid cash or borrowed around 50%. Those that purchased did so as a permanent move, and not so much as an investment. We don’t see short sales and defaults due to sub prime mortgage lending. In short we don’t see a market crash. In fact we see well priced properties continue to be in hot demand as this part of Florida offers a more affordable way of life than many other areas around the state or country.

 

What I am hearing is some people who are “hurricane weary” saying they are considering a move, as they don’t want to go through another storm and the cleanup aftermath. If you are one of them, before you do anything please give us a call. This is not a solicitation to list your home and to wish you much success on your move, but to help you decide if making a move is really going to give you the peace of mind and enjoyment you are seeking. People buy and sell real estate on emotion, and that emotional desire is different for everyone. There isn’t an area in the country that isn’t impacted by one form of catastrophic weather or another, but there is a reason you came to Florida. The two pieces of advice we would give anyone giving serious thought to a move would be 1. Research the area you are considering and determine if it really provides you all the things that meet your interests, and not just an emotional escape. 2. Know the value of your home. When Hurricane Charley impacted us there were countless stories of people coming in and preying on the emotions of those most severely impacted, especially the elderly. They agreed to accepting extremely low offers and in some cases even signed over their insurance benefits. Our goal is, and always has been, to give honest advice and insight to the market. If a move is a serious consideration, make sure it is for all the right reasons. Who knows, you may find in a short time your current home and community in which you live offers you the best quality of life you’ve been seeking.

July Housing Update

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While some are feeling the effects of higher interest rates and media reports the early stages of a recession are upon us, our housing market continues to remain strong, especially with homes that are well priced. I think it is safe to say the frenzy may be over as the buyers have adjusted to Covid from the panic buying it elicited. Comparing sales in June and July of 2021 to the same time period this year for Charlotte County while there were a 186 fewer homes sold, the average selling price increased from $390,024 to $461,425 or 18.3%. Sarasota County had 442 fewer homes sold during the same period of time however the average selling price of a home increased from $606,904 to $716,607 or by 18%. The fewer number of sales can be attributed to low inventory and supply chain issues that have delayed new construction. We are seeing some reductions in list price from those who wanted to test the market by pricing their homes above what the market would support. Another indication there will be more of a balance in the buyer vs. seller market.

Charlotte Harbor Freedom Swim 2022

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It started small and spontaneous. Over thirty one years ago, Punta Gorda attorney Michael Haymans and some friends decided to celebrate the Fourth of July by swimming the 1.5 mile distance across the Peace River. They weren’t athletes in training; they had heard stories about how in the 1940s, swimming across the river was a rite of passage for teens.
They had a good time, they told their friends, and those friends told a few more friends.
Haymans resists commercializing the event. He doesn’t charge participants, require advance registration or give prizes.
It’s a happening, not a race; some don’t even swim. There are stand up paddleboards, inflatable rafts, inner tubes, even folks on plastic noodles. Kayaks join the procession with dogs on board. Takes about 40 minutes to 3 hours to cross.
There are no rules except using common sense and courtesy. (Swim with a buddy!) Many swimmers go for red, white and blue attire. For a few years, some swimmers took “freedom” to another level: They swam au natural and ran their swim suits up the mast of their sailboat. (Word has it that sailboat owner isn’t around any longer.)
The 2022 Charlotte Harbor Freedom swim will start at 9:00 AM at Live Oak Point-5100 Tamiami Trail Charlotte Harbor, FL 33980. You must sign in the day of the swim and it is recommended to be at starting point a half hour early to hear the instructions for safety. Participants will gather in the water/public beach on the northwest side of the north end of US41 North Bridge at the start of the swim, and parking is recommended at Fishermen’s Village since the swim ends at Harpoon Harry’s. Harpoon Harry’s will open and hour EARLY @10 am Monday morning to welcome guests and swimmers!
Over at Fishermen’s Village, Punta Gorda will keep the swimmers happy with live music until the fireworks start with a variety of children’s activities such as face painting. The fireworks display over Charlotte Harbor begins at 9 p.m. Here is a list of events: Fishermen’s Village Independence Day Celebration
Source: Herald Tribune

Did you hear?

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Did you hear PUNTA GORDA was ranked #1 as the nation’s most sought-after areas from buyers who are looking at homes in a different metro area from where they live AND we were the only city listed in top 10 in FL  #lovewherewelive  #garycardillogroup #localagents Read more below from Realtor.com….

Here Are the Most Popular Cities for Homebuyers in 2022—and the Places People Can’t Wait To Leave

By Clare Trapasso

May 3, 2022
The COVID-19 pandemic shook up just about everything—especially where many people live. It caused a mass real estate migration unlike any in recent memory.

Lots of folks traded the cities for suburbs—more space! fewer people!—while others relocated to new, often cheaper, parts of the country. And with the popularity of remote work that allows buyers to live just about anywhere and the growing frustration with record-high home prices, the real estate reshuffle isn’t slowing down anytime soon.

In the first quarter of the year, more than half, 59.7%, of all of the views on the home listings on Realtor.com® came from shoppers based in other metros, according to recent Realtor.com research. That was a 4.6% bump over the same time last year.

Our economics team analyzed the search traffic on Realtor.com to figure out the areas where people wanted to move to—and where they most wanted to leave. We scrutinized the data to determine the nation’s most sought-after areas from buyers who are looking at homes in a different metro area from where they live. On the other end of the scale, the team also found the metro areas where the highest percentage of locals were looking for homes someplace else.

“The pandemic led many Americans to revisit priorities, preferences, and timelines,” says George Ratiu, manager of economic research for Realtor.com.  “Worries over health, financial pressures, lifestyle, and well-being were channeled into finding a home in a location which offered ample access to the outdoors, better quality of life, and increasingly important, affordable housing.”

As for trends, we found that the ever-elusive quest for affordability is still driving most preferences. Vacation and retirement destinations are especially popular with those browsing real estate listings from other areas. Some shoppers were looking to relocate, especially those who can work remotely. Others were hoping to purchase a second home, and then there were those who just wanted to dream.

Meanwhile, folks in the more expensive cities, colder parts of the country, and college and military towns seem to be looking for exit strategies. Folks in the chilly and pricey Northeast were the most likely to look at homes in other parts of the country. About 37.2% of them viewed properties in different regions. About 26.4% of folks from the Midwest, 25% of those in the West, and just 11.3% of people in the South also searched Realtor.com for residences located elsewhere.

To track the moves, the Realtor.com analysis covered the 300 largest metropolitan areas in the first quarter of 2022. (A metro area encompasses the main city and surrounding towns and smaller urban areas.) We limited the list to just one metro per state to ensure geographic diversity.

OK, let’s start with the most popular list—a tour of the most desired destinations for homebuyers right now!

Real Estate Update: April 2022

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Many people have asked me with the war going on in Ukraine, inflation and interest rates on the rise when do I see the market crashing or at the very least bursting.
While no one has a crystal ball, we have several things going for us that I feel will enable Florida and our area specifically to do better than most. Yes, the higher cost of living does affect the discretionary income for many, while higher interest rates will impact those when it comes to financing a home. However, Florida remains very attractive for its climate, its cost of living when compared to many northern states, and for the tax benefits to be enjoyed. In other words “weather, water, way of life!”
As I’ve mentioned many times before, ever since the onset of Covid, those moving from the north found they could work remotely and sold their homes at a much higher price than the homes they were purchasing in Florida. Most paid cash, while others only borrowed 50-60%. There were no sub-prime mortgages and over leveraging granted to buyers who, under normal circumstances, wouldn’t qualify for the loans they were seeking. From a lending point of view the banks were in much better position to sustain a real estate slow down knowing those that were approved for loans were well qualified and weren’t a great risk.
Port Charlotte and Punta Gorda specifically were considered the fastest growing areas in the country and compared to our surrounding counties, we were the “bargain” that attracted the growth. However, with that growth and low inventory levels sellers started taking full advantage of the “captive market” and property prices started to soar. Unfortunately, when prices start to take meteoric rises on properties that shouldn’t be rising to that level, that is when you can start to see some pull back. I base this more on buyer feedback than any prediction of a crash.
While Covid may still be a presence, I think more people feel they can cope with it better now than at the panic levels we have experienced the past few years. While the real estate market has become a 365 day a year business, we are starting to see some of our winter visitors heading back home to be with family for Easter. These may ease the “frenzy” a bit when it comes to bidding wars, but keep in mind a well-priced property doesn’t require a buyer to be present to submit an offer on a home, so I would still expect to see multiple offers on those properties.
So what do I see? I feel prices will remain high, but for those properties that are perceived as excessively priced, there will be price reductions as buyers are keeping an eye on those market rates and inflation. The result is they will hedge themselves a bit from going out on a limb and submitting an offer for a property that is perceived to be well over market value. Coupled with material costs to build or remodel, I feel the market will remain strong, but buyers will exhibit a bit more caution and make offers more in line for what they feel their total investment will be in a home, and not be as influenced by emotion as what we may have been experiencing.
Very few can argue that Florida affords one an incredible lifestyle, and that bodes well for our community. By comparison we are better poised for continued growth and with developers and national home builders still attracted to our area I think pricing, especially in the $250,000-600,000 will remain very competitive.

About The Gary Cardillo Group

Gary Cardillo, Realtor While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.
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