Most of the North Port land transactions involve small residential lots up to ½ an acre. North Port still has as many undeveloped lots as are developed which makes lot transactions an interesting property segment to watch.
Englewood, Punta Gorda, Port Charlotte and other cities in this area are experiencing the same spike in lot sales.
- NEW CONSTRUCTION WAITING PERIOD
- PURCHASED PRE-RECESSION AT A HIGHER PRICE?
(click for possible solution)
- HOW MUCH WILL A BUYER PAY?
- AVERAGE NORTH PORT LOT PRICE
- HIGH/LOW PRICES BY CITY
- NORTH PORT LOT SALES CHART
- LOT SALES ARE SLIPPING A BIT
- HOME BUYING SOLUTIONS
- WHERE WE WORK
NEW CONSTRUCTION WAITING PERIOD:
With more buyers than sellers, competition for resale homes has been fierce. Many home buyers who would NOT normally look at new construction are now choosing to wait for a home to be built.
When we say wait, we mean it! Single lot home builders are writing contracts with completion dates stretching out 10 months to two years. You have more builders in the area that need lots to build on, and buyers
who are purchasing thier own homesites (lots). You also have speculators and lot investors scooping up bargains when they see them.
[Side note: Speculators buy based on perceived momentum and other information not necessarily related to underlying data and typically are looking for short gains whereas investors purchase based on actual data, safety of capital with an expectation of a satisfactory return, and are not typically concerned with short term gains. Many people use a combination.]
In North Port, existing single family home sales are strong. Take a look at the data:
IF YOU PURCHASED A LOT PRE-RECESSION AT A HIGHER PRICE:
Leading up to the recession, North Port Lots reached a much higher price range than they are selling for today. Some of the areas still have years ahead of them before development of
any consequence gets underway. I think it's safe to say that if you purchased a lot in 2005, you are likely nowhere near breakeven.
Speak with your accountant to find out if you can charge off a capital loss against capital gains. You may want to take a profit now on some other investment. Maybe you want to take a profit on stock investments. Depending on your situation, you might be able to use your loss to your advantage.
If vacant lots or other real estate are purchased for investment purposes (versus bought for personal use) and sold later for less, you may be able to claim the loss. Capital losses charged off against capital gains are a common usage by investors. However, it must be an investment which is not the same as buying a house or lot for your personal use. If you think you can use a loss on the sale of a property, first verify with your accountant, then call Scott to sell your property.
HOW MUCH WILL A BUYER PAY?
Short term data shows pricing pressures on lots. We use various ratios to determine interest in different locations and property charactaristics (used for several types of properties including homes and lots). Location and characteristics (waterfront, inland, cleared, wooded and other factors) will influence your lot's price which may have a different absorption rate and ratio results than North Port as a whole.
We periodically evaluate (and follow) the outcome of lot packages from 10 to 100 lots or more. A recent sale of 69 lots spread out from North Port and surrounding cities sold for $759,000 which averages
out to $11,000 a lot. The price range for single lot transactions range from much higher to lower than $11K. Using up to a 1/4 acre for all of North Port (for example purposes),
all sales from 07/06/2021 to 10/06/2021 averaged $17,900 a lot.
The chart below show a wide price range. North Port has a land mass of 104 square miles. Some areas are well developed and some aren't. As with Englewood, Punta Gorda and other cities, lot characteristics and location will influene price. If you're selling or buying lots, acreage, or a house, anywhere in North Port and/or the surrounding cities, knowing the true data for the area can be the difference between a good deal or a poor one! (We can help - Call Scott)
North Port: [From 07/06/2021 to 10/06/2021]
Lots up to 1/4 of an acre averaged a sold price of $17,900.
The Majority of these lots (251 of them) were within the price range of $15K and $25K
HIGH / LOW LOT PRICES UP TO A 1/4 ACRE FROM 07-06-2021 -to- 10-06-2021
|North Port||$ 40,000||$ 4,600|
|Englewood||$ 41,000||$ 12,500|
|Punta Gorda||$775,000||$ 3,500|
|Port Charlotte||$267,000||$ 3,900|
HIGH / LOW PRICES 1/2 to 1 Acre Lots [FROM 07-06-2021 -to- 10-06-2021]
|North Port||$ 97,000||$ 11,000|
|Punta Gorda||$135,000||$ 8,999|
|Port Charlotte||$160,000||$ 20,000|
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HIGH / LOW PRICES 1 -to- 5 Acres [FROM 07-06-2021 -to- 10-06-2021]
|North Port||$260,000||$ 39,900|
|Punta Gorda||$550,000||$ 10,000|
|Port Charlotte||$170,000||$ 39,000|
HIGH / LOW SINGLE FAMILY HOME SALES, 1500 Square Feet to unlimited,
NO NEW CONSTRUCTION [FROM 07-06-2021 -to- 10-06-2021]
|North Port||$ 975,000||$202,000|
We have seen lots bought and sold by people who don't understand the characteristics that go into the price of the lot.
Excluding selling and buying motives, the price points on the buy and sell side are often higher or lower than what a knowledgable person would agree to. It's the same for selling or buying a house.
If you're on a water canal, your lot should sell for more than a wooded inland lot. Each lot should be looked at individually. You can search sales in the area of your lot to get an idea of what yours might sell for, but keep in mind that the higher priced lots have either preferred charactaristics or could have been purchased through a builder. When a lot is presented as part of the construction package, buyers will often pay more. If you price your lot wrong, the chances are you will remain unsold for a long time.
NORTH PORT LOT SALES CHART
2021 is going to be a record setting compared to recent years
NORTH PORT LOT SALES ARE SLIPPING A BIT
4 Months ago (from August 2021), the Absorption Rate was 7 months (up to 1/2 acre - all of North Port). By the end of August, it was 9 ½ months. There are fewer buyers at higher prices so the change in the absorption rate makes sense. At the time this was written, we didn't check the increase in listings which also effects how long it can take to sell your property. If this trend continues, it is going to take longer to sell your lot tomorrow than it would have a few months ago. The timeframe is still way better than it used to be, and like all real estate sales, understanding how your property fits in the market compared to other Active listings is key to positioning your property to sell faster.
(Call for an explanation if this isn't clear to you:
Phone: 941-882-5494 Ext 701)
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HOME BUYING SOLUTIONS
Everyone from individuals, investors, speculators and builders buy lots. It's been a race to grab lots for future needs and speculation. With all of the supply chain uncertainties, you might not want to risk waiting for a
house to be built. Many builders now include language in their contracts that allow them to pass along supply chain price increases. That could become an unpleasant surprise.
(We can help with your new construction search and builder extras). Call us.
With more buyers than sellers, priced right resale houses are going into contract at record speed. As a buyer, there are approaches in addition to basic searches that can give you an edge.
As a seller, you need to understand how your property (house, lots, acreage etc.) fits in the market along with what's really going on in your area so that you can maximize your return.
If you want to learn tactics that help you buy without the long build wait, or selling tactics that will improve your price, call Scott to discuss how we can help you.
Phone: 941-882-5494 Ext 701
WHERE WE WORK:
Sarasota, Charlotte, Hillsborough, Pinellas counties. Parts of Lee, Pasco and Manatee counties, North Port, Englewood, Punta Gorda, Valrico, Brandon, Lithia, Fishhawk and wherever our clients call us from. We also do personalized referral services throughout Florida which includes our opinion of your sales or purchase price pre-referral so that you have our opinion in additional to the broker who accepts our referral.
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