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Charlotte County Real Estate Market Faces Challenges with Rising Insurance Premiums and Interest Rates

The residential real estate market in Charlotte County has achieved stabilization; however, future sales may be impacted by increasing insurance premiums, property taxes, and interest rates. As Danny Nix, the head of Realtors of Punta Gorda-Port Charlotte-North Port-DeSoto Inc., points out, predicting whether prices will continue to soften or rally is challenging.

Insurance Costs on the Rise

According to Nix, insurance costs have nearly tripled. While potential buyers may have the funds to purchase a home, high insurance premiums might cause them to reconsider. This is especially true for waterfront properties in flood zones, where flood insurance is mandatory for mortgaged homes. Depending on a property’s elevation, these insurance premiums could be quite costly.

Increasing Property Taxes

Property taxes are also on the rise. In some areas of the county, waterfront properties with septic systems are being converted to central sewer systems, resulting in an assessment on homeowners’ properties. Additionally, a growing population has necessitated the expansion of the county’s infrastructure, water treatment facilities, emergency services, and related equipment, as well as first responders and public projects to accommodate growth.

Interest Rates and Mortgage Considerations

Nix suggests that those needing a mortgage may want to wait until the federal interest rate is lowered and banks and lending sources reduce their rates. Despite higher prices, more than 1,000 people are moving to Florida daily, and new construction is booming. This shows that higher prices are not deterring those determined to live in the Sunshine State.

Waterfront Properties and Luxury Homes in Demand

The market for waterfront properties and luxury homes is moving more briskly than homes in other price ranges. For example, a 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 just 39 days.

On the other hand, moderately priced homes in the $300,000 range are taking longer to sell in many cases. This is likely due to a larger inventory in that price category, according to Nix.

October Sales: A Mixed Picture

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. With these challenges in the Charlotte County real estate market, potential buyers and sellers need to stay informed and adapt their strategies accordingly.

Orginal article: Link To Article – provided by Kansas City Realtors