Punta Gorda leads nation in foreclosure rates as insurance costs, storm damage pile up

PUNTA GORDA, Fla. (WINK)—Punta Gorda leads the nation in foreclosure rates, according to a new report from ATTOM.

The report shows 0.50% of housing units received at least one foreclosure filing during the first half of the year. Florida leads all states as one in every 373 housing units file for foreclosure.

Local realtor Luke Andreae says the numbers don't tell the whole story. He says while some homeowners are feeling financial pressure, this isn't the kind of widespread housing crisis the country saw in 2008.

"We had a lot of people who bought in 2021, 2022 during the foreclosure during the COVID crisis that wanted to come to Florida, and it pushed our prices up, and they paid more than what those homes are worth today," Andreae said. "And we're also seeing a lot of people's insurance rates really rise."

Andreae, part owner of RE/MAX Harbor Realty, says Punta Gorda has challenges after multiple hurricanes drove up insurance costs while home values settled from pandemic highs. Property prices that peaked during the pandemic are now coming down while insurance costs continue to climb.

"We're more vulnerable because we got hit by three storms in two years, and we had the COVID price hike," Andreae said. "It's a unique situation. But those two trends pushed prices up, and now have pushed expenses up and pushed prices back down."

Even with foreclosure filings on the rise, Andreae says he doesn't believe buyers are avoiding the area.

"It's an epidemic to the people who are facing it, but I don't think it's an epidemic to Punta Gorda or Charlotte County right now," Andreae said. "Overall, the real estate market is improving from where it was a year ago. The problem is there is a subset of people who are who got hit by some tough circumstances."

Andreae says there are ways to avoid foreclosure, but homeowners have to do the research. He recommends talking with a realtor to see if a home is truly worth less than what is owed.

"Talk to your realtor," Andreae said. "See if your home is truly worth less than what you owe. Sometimes we see foreclosures that actually have a little bit of equity in them because they didn't research it, and got behind in their fees."