National builders impact sales of older homes in Charlotte County

The number of homes for sale in Charlotte County declined in July as some sellers pulled their listings, even while national builders sold properties at little or no profit to clear excess inventory.

Real estate agents are advising most clients to wait until prices stabilize unless they must sell now, said Shelton Weeks, Lucas Professor of Real Estate at Florida Gulf Coast University. In that case, Weeks said, sellers should address repairs and updates to compete with national builders, who can sell new, move-in-ready homes without factoring in profit margins.

The current market is far different from the buying frenzy of several years ago, Weeks said, when inventory levels were measured in days rather than months. During the pandemic, Charlotte County had just over a week of single-family home inventory. In July, the county had 7.5 months of single-family supply and 11.1 months of condos and townhomes.

That shift also has affected sale prices. At the peak, multiple offers pushed sales above 100% of asking price. In July, the median percentage of the original listing price received was 90.5% for single-family homes and 88.7% for condos and townhomes. Both were slight improvements over June, when sellers of single-family homes received 89.5% and condo sellers 86.2%.

Median prices held relatively steady. Single-family homes sold for a median of $345,000 in July, up from $335,000 in June. The median condo price was $258,959, nearly unchanged from June’s $256,595.

Sales volume softened. There were 463 single-family closings in July, down from 491 in June, while condo and townhome sales edged up to 84, compared with 79 the prior month.

August is typically the slowest month of the year for sales, with figures expected to be released in mid-September. Some Realtors say prospective buyers are waiting to see how the hurricane season unfolds before committing to a purchase.

Hurricanes remain a major concern in the market, Weeks said, along with higher insurance premiums and broader economic uncertainty. If the county avoids major storm damage this season, the market could rebound, but it will remain a buyer’s market until inventory drops below six months.

Weeks called today’s market “challenging” and said a “fatigue factor” has set in for buyers, sellers and industry professionals alike.