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Cape Housing Highlights
Special Advertising Content contributed by Cape Coral Association of Realtors®
SEASON IS OVER . . . BUT SALES ARE NOT!
Snowbird season is over for Cape Coral and now we move in to the summer selling season. Yes, there is a summer selling season. Most people I speak to think we have only one season  - winter! But the chart below clearly demonstrates the very balanced selling cycles we enjoy in Cape Coral. In fact, for the last three years the second quarter (April through June) was the strongest selling season in Cape Coral, followed by the third quarter (July through September). But all in all they were quite consistent all four quarters. So when is it good to sell in Cape Coral - when the reason for selling is right for you!
STRONG SALES CONTINUE!
In good times and in challenging times, one factor you can not remove from the Cape Coral real estate market is the wonderful waterfront appeal we have to offer. The old adage "Location, Location, Location" will never change in the world of real estate! And we´ve got the best of locations-400 miles of canals, continuous sunshine, close to beaches/airport and affordable home values. These factors are the propulsion behind our strengthening real estate market. In 2009 we saw the strongest market ever. This year is also off to a very strong start. The first five months of 2010 have been almost as strong as the same time period in 2009. For the second year in a row Cape Coral has seen rebounding sales and home buyer confi dence.
FORECLOSURES AND DISTRESSED SALES
This is the best news of all for local home owners! The number of foreclosures in Cape Coral is falling. Buyers looking for foreclosure opportunities have fewer and fewer to choose from and steady competition from many buyers. I believe one factor in the lower number of foreclosures is attributable to the fact that more homes are selling as a short sale - before they go into foreclosure. Consumers are becoming educated in the benefit of selling as a short sale and researching their options prior to going in to foreclosure. For the fi rst fi ve  months of this year, non-distressed sales accounted for almost 40% of the total sales. In all of 2009, non-distressed sales were only 27% of the homes sold. As the inventory of foreclosures and eventually short sales declines in the market, prices will rise and the regular (old fashioned) real estate transaction shall return! The foreclosure media attention has certainly brought baby boomers to our area earlier than they may have intended to buy their retirement home. The baby boomers have recognized the value of buying their retirement home early and at wholesale prices. We all know that their money sitting in retirement accounts isn´t earning them anything . . . So it´s a no-brainer to buy your retirement home at the bottom of the market!
THE SCOOP ON CAPE CORAL HOME INVENTORY LEVELS
The most important factor in any market recovery is the equalization of supply and demand.  Fortunately for Cape Coral, we have seen a tremendous adjustment in supply in a very favorable downward direction. For the past two years demand has been stronger than ever! Inventory levels are about one third the level they were at the beginning of 2006. This year is off to a great start. Sales continue to be aggressive even after the sunset of the home buyer tax credit. The historically low interest rates and prices still far below replacement cost make this an excellent time to buy. The housing future of Cape Coral continues to be much brighter than most of the entire country! Despite the economy people will always want what are blessed to enjoy every day . . . a warm, sunny and tropical waterfront living community!
Cape Coral Condo Checkup
The highest sale in Cape Coral Florida condominium living last year was a 7th floor unit in Tarpon Point (which is actually a 9th floor view as the first two floors are parking garages). This resort style condominium with over 3,000 square feet and gorgeous river views sold for $775,000.
On the opposite end of the spectum, there were only 15 condo sales under $100,000 in 2005. They were rare to say the least! Last year, 313 of the 529 condos sold were under $100,000!
In 2005, a $100,000 sale on average bought you an off-water condo built in 1978 with 827 square feet of living area.  Most were one or two bedroom units. None were waterfront.
In 2009, a $100,000 investment bought you an average of 1,172 square feet and a condo built in 1989 AND included gulf access! Eighty nine of the 313 condos sold under $100,000 were gulf access units.
As with Cape Coral, Florida single family homes, waterfront living offers a most enjoyable lifestyle plus the greatest investment opportunities today. In Cape Coral, Florida there are still plenty of great bargains to be found in condo living and a majority of the condos for sale today are gulf access units. The number of foreclosures available today is nothing like what it was in 2009, but if you´re quick there are still possibilities available. Of the 424 condos on the market in Cape Coral today, only 30 are foreclosures. Better hurry if you want one of those!
I predict that in 2010, the regular, non-distressed seller will dominate the sales market as foreclosures  and short sales continue to decline. Recently Fannie Mae announced last month an effort to loosen the financing standards for condos in Florida, which will help the Florida condo market considerably. In addition, there has been a trend in reduced condo maintenance fees in our area as associations have rebuilt reserves and lowered insurance costs.
Cape Coral, Florida Condo sales will be strong this season thanks to affordable prices, low interest rates, lower maintenance fees and reduced inventory levels. As in the single family home market, gulf access properties still show the greatest potential and opportunity for buyers. A condo is a great property for seasonal buyers who want the easy of turnkey access, little maintenance and enjoyable amenities. |
