Real estate expert: Punta Gorda’s price correction is temporary

Author: Nancy Semon, Gulfshore Business
Published: Updated:
Credit: Getty Images

When an Aug. 11 Fast Company story was published comparing the housing bubble burst after prices peaked in 2006 to today’s falling home prices in Punta Gorda, local Realtors and an analyst took notice.

The story, written by Lance Lambert, former editor at Fortune, carried the headline: “This Florida city was hit hard when the 2008 housing bubble burst—now prices are falling again.”

Lambert cited data and a report from credit rating agency Moody’s and referred to the price spike from December 2019 and July 2022 when “Punta Gorda home prices surged a staggering 73.2%. They have since dropped by 9.1%.”

It went on to state “Punta Gorda was one of the hardest hit housing markets during the housing bubble burst in 2008.”

Then, it gave an example of a private equity-owned home in Burnt Store Village that was bought for $445,000 in May 2022, during the height of the pandemic housing boom.

The home was rented, and then the company decided to sell it. The first listing price was $400,000 in February this year. In July, it is still for sale, with an asking price of $336,000 after six price cuts. If it sells for that amount, it would be a 25% decline from its original purchase price.

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