Rent vs Buy in Punta Gorda>Question Details

Billy, Home Buyer in Buffalo, NY

is it a good time to buy in pg?

Asked by Billy, Buffalo, NY Sat Jan 3, 2009

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13
The prices of homes in Punta Gorda, Florida have been steadily falling. I did a little research for you and according to the Mid-Florida Regional MLS system, there has been a 25% drop in home prices since 2005 in Punta Gorda. That's quite a drop for such a short period of time. Just as one watches the stock market, the goal is to wait until the home prices have dropped as much as they will and purchase one just before the market begins to rise again. So, the real question is whether or not we have reached that point yet.

In my opinion, the home market is finally starting to level out. Home prices fell so quickly due to the surge of foreclosures and short sales on the market, creating a supply that overwhelmed the demand. As we all learned in high school economics, a high supply and low demand means low prices. What is beginning to happen now is that prices have gotten so low that even part-time residents and families who have been renting for years can afford to own a home for the same amount (or less!) than what they have been paying in the past. The more people that buy homes, the quicker the market will turn around.

When we reach that point in the supply-and-demand graph where they two are equal, then we will be well on our way to increasing home prices. If you have been thinking about or dreaming of owning a home in Punta Gorda (or anywhere in Southwest Florida), I would say that your ideal time to buy is between now and the next six to eight months. There is a possibility that the market is leveling itself now and will begin to rise by this time next year.

There was an article in the Herald Tribune over the summer that gave some very level-headed opinions, and I wrote a blog on it that may help you in your decision making process. Feel free to check it out here: http://activerain.com/blogsview/565706/Just-a-few-less-For-S…

Good luck!
2 votes Thank Flag Link Mon Jan 5, 2009
Is now really the time to buy?
There is much debate over the question, is now really the time to buy? In Southwest Florida, yes it is. It is definitely a buyer's market. Interest rates and home prices are extremely low. There are short sales, foreclosures and normal sales. There are plenty of homes to choose from in a variety of price ranges. Whether you are a local, an investor, a snow bird, a retiree, a first time home buyer - there is something for everyone.

Another question that comes to mind is, should you rent or should you buy? Some people say you are throwing your money down the drain when you rent. But there are some instances when you have to rent. Some people can never qualify for a mortgage and others are just not meant to be a home owner. Overall it is almost always better to own your home rather than rent. You build equity and you can write off your mortgage interest.

People that lost their homes to a short sale or foreclosure will not be able to buy for another 2-5 years and are forced to rent. A lot of other people are also choosing to rent rather than buy. This is having an enormous effect on economic recovery. What is holding them back? People need to be able to save enough money for a down payment and qualify for a loan. Some people are looking for a new job, a better paying job, or waiting for a promotion or raise.

If you are thinking about buying now, meet with a lender to see if you qualify. Then take that leap while the market is good for buyers. Again, interest rates and home prices are the lowest they have been in years. Now is the time to buy in Southwest Florida.

Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL - tammyhayesre@gmail.com
0 votes Thank Flag Link Wed Oct 13, 2010
Hi Billy, it's a good question. It requires a thorough decision making process to figure it out. I wrote a four part blog about whether it is a good time to buy -- you can check it out at the link I reference below.
0 votes Thank Flag Link Fri Sep 24, 2010
For the nervous buyers that think it is a bad time to buy, you have to check all options. The Gentleman that said if he had bought he would have lost money because the prices have dropped more in his area. You would not be losing money unless you bought at one price and turn around and sold it for less. No one knows were the bottom of this is, but sometimes you can buy for the price you are paying in rent and if you plan to stay in the home for a few years, the home should gain value. If you rent, you are just paying the mortgage to gain value for your landlord. You look at all options and it might be good for one person to buy and another not to, depending on your job security.The interest rates are near an all time low, if you wait to buy until the market turns around, you are going to pay more a home and probably have a higher interest rate which will mean a much higher house payment, how would you call that a winning deal?
0 votes Thank Flag Link Mon Mar 9, 2009
There are new homes in Burntstore that can be purchased right now for under $100,000. I'd say the time is right.
0 votes Thank Flag Link Sat Mar 7, 2009
As of January 2009, as a homeowner (for now) and someone who has lived and worked here in Punta Gorda since 1992, it is only a good time to buy in Punta Gorda if you have a secure job before you buy and move here. Otherwise, you may be in the same boat many people are in here; lost employment and facing foreclosure. Sure, it is a great area, but bring a profitable job with you. Jobs are very hard to come by here unless you are in healthcare. I am not a realtor so I have nothing to earn from telling you an answer. Good luck.
0 votes Thank Flag Link Sat Jan 17, 2009
Billy,

It is absolutely a wonderful time to buy in Punta Gorda. My husband and I made an offer on a home there six months ago, however, the owners of the PG home didn't get back to us within the offer timeframe. We made an offer on a gorgeous canal home in Port Charlotte, just across the harbor from Punta Gorda. Our offer was accepted and we are now enjoying our "canal - pool - five minutes to the harbor" home in Port Charlotte.

It looks like Jim Mulligan from Suncoasteam Realty has already sent you the links for Punta Gorda, Deep Creek and Port Charlotte.

If you would like additional information regarding Charlotte County homes or our purchasing experience in the county, just call or email me. I'd be more than happy to assist.

Happy home shopping!
MJ


MJ Shetron
Licensed Real Estate Agent
Suncoasteam Realty
941-268-1938
mj@suncoasteam.com
free property search at http://www.searchsuncoast.com
Web Reference: http://www.suncoasteam.com
0 votes Thank Flag Link Sun Jan 4, 2009
Billy,

It is indeed a great time to be considering buying property in the Punta Gorda area. Our company recently listed and sold this property as an example of the types of deals that exist.

Location: North Port

Built: 2002

Description: 3 bedroom, 2 bath, 2 car garage

Condition: move in

Asking Price: $64,500

We have 2 sons currently living in the Buffalo area. One near Ralph Wilson stadium and the other in Wheatfield. We love the area but the winters are too long.

Good luck
Susan & Bill Eckler
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes Thank Flag Link Sun Jan 4, 2009
A "good time to buy" real estate anywhere is when you find a property that meets your criteria and is within your range of affordability. This applies (or are you an "investor"?) without regard to the direction prices are moving, a conclusion based on historical statistics and, somewhat, on current conditions (e.g., inventory) - remember on the way up?

Real estate is a lot like apples - you're probably the only one at the apple bin when you evaluate what type you want, the condition of a particular apple and its asking price. If you decide to buy it - see sentence 1 above - it will most likely be for other reasons than its future value/saleability because you are going to use it. If enough people decide not to buy an apple, the grocer will reduce the price or polish it and eventually one that won't sell will be removed from the bin. There IS an important difference between apples and real estate though - you can take an apple wherever you so desire, hence the location consideration.

A real estate "market" exists when you (or someone else) decides to buy something, the owner decides to sell at an agreed upon price and the transaction is consummated; a market also existED when you decided NOT to buy.

The seller will continue seeking a buyer (hopefully with the knowledge of why you didn't buy) and you will continue looking at properties. If you decide to return, will it still be available? How many buyers have to pass before a seller solves his problem (typically, but not always, price)?

If you like it and you can afford it, buy it.
Web Reference: http://www.KRolland.info
0 votes Thank Flag Link Sun Jan 4, 2009
Hi Billy. Each of the previous answers are correct. Punta Gorda and the surrounding area does have a huge inventory with price points we haven't seen for years and interest rates are exellent.

The true question is are you ready to take advantage of the opportunites offered right now or do you want to wait to see how low prices will go? If you are ready to explore the possibilities now, please contact me with your search criteria and I'll set up an automated search within our MLS to send you properties fitting that criteria. You'll receive updated e-mails whenever a property falls into the parameters you've established either through a new listing or a price change.

Remember, the only way to determine when we've hit bottom is through the rear view mirror.

Thank you,
Sharon
0 votes Thank Flag Link Sun Jan 4, 2009
Billy,

Punta Gorda, FL is a great place to live or have a seasonal home and prices are now as low as they’ve been in 5 years. While it is difficult to determine the bottom of the market, it is certain that this is a better time to consider a purchase than any time in the recent past.

If you watch the price trends you will see that there have been quite a number of sales in the area and buyers are getting great deals. Sometimes when a home reaches the market at a very low price, excited buyers have been bidding them up. In Port Charlotte we have seen a 3 bedroom, 2 bath, 2 car garage pool home, built in 1996, tile throughout and in good condition (needs a little paint, etc). Asking price $87,000… bids at least to $91,000. This home sold for $220,000 in 2005. Yes, there are bargains and with the help of a knowledgeable agent, you will find a deal.

There is an excellent inventory of homes in Punta Gorda. Punta Gorda includes Punta Gorda Isles, the historic section of downtown, Deep Creek and some outlying areas.

Punta Gorda Isles is known as the best boating community in Southwest Florida. Most homes in PGI are built on gulf access canals and have the added benefit of being maintained by the city. A waterfront home in PGI does not come cheap, but you certainly can find a very nice home at a great price. Check out this report of waterfront homes in PGI: http://www.searchsuncoast.com/searchresults.html?proptype=Ho…

Deep Creek was developed by the same people as Punta Gorda Isles and have similar deed restriction. The homes are beautiful and the neighborhoods are clean and safe. Deep Creek is off the water but if you are a golfer, it has a very nice course and it is still close to downtown Punta Gorda with its shops and restaurants. Take a look at this report: http://www.searchsuncoast.com/searchresults.html?proptype=Ho…

If you are not interested in a waterfront home or a golf course home, you may consider Port Charlotte, across the river from Punta Gorda. It has great shopping , restaurants and neighborhoods, an excellent beach complex and the price for a home is a bit less. Here is a report of Port Charlotte homes: http://www.searchsuncoast.com/searchresults.html?proptype=Ho…

If I can be of further help, give a call or drop a line.

Jim

James Mulligan
Licensed Real Estate Broker
Suncoasteam Realty
941-456-3034
jim@suncoasteam.com
free property search at http://www.searchsuncoast.com
Web Reference: http://www.suncoasteam.com
0 votes Thank Flag Link Sat Jan 3, 2009
Billy, You have time, research the market for that area, look at the amount of foreclosures, unemployment, sales, sales prices, mortgages in trouble ect.. and you decide..Buying because MAYBE you might miss the bottom is not a good plan..Just ask those who bought 4 months ago because they might miss the bottom..

If you can afford the payments no matter what happens, if you don't care that prices may still decline, if you know your job or retirement is secure, if you know local services will continue ect.. Maybe...

Good luck, Dunes
0 votes Thank Flag Link Sat Jan 3, 2009
Billy,

Of course I can only speak for my area of operation, but there are a few things to look at to answer your question in general, but it is ultimately up to you to make this decision in any market.

First, the interest rates are low. I’ve always felt that anything below 7% is good. Now we’re flirting with 5% and lower. Second, the inventory is high, but that won’t last. This time in Dayton, Ohio the inventory was 13 months and that is now down to 10 or 9 months. Finally, price reductions are finally taking place. The seller is coming to terms that their home is not worth what it was in 2005.

Here are the challenges to your question: The interest rates may fall even further, the prices may fall further and the choices may be greater. I can’t say that this is not true, but how will we know? We will know when the interest rates prices stop falling and start to climb back up, when the price of new listings start to climb back up and when the inventory begins to shrink. What I’m trying to say is if you wait for the most perfect time, you will watch it pass you buy because the only way to know when the ball hits the bottom is after it is on the way back up. Let’s say you are waiting for the price of a specific home to drop to its ultimate low price. Some one else won’t wait and you’ll loose that house. That’s okay. You’ll just find one like it, but now the prices have bottomed out and now the market is turning so the interest rates will begin to climb. In the end if you wait to buy, you run a chance of paying the same because you missed the bottom and now the interest rates are higher than you would have gotten if you bought on this side of the trough.

Even though the prices may drop further, and I don’t think they will by very much, it’s still the best time to buy right now.
0 votes Thank Flag Link Sat Jan 3, 2009
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