Real Estate Market Sees Strengthening

Real Estate Market Sees Strengthening

Snowbird season is over, and now it’s time for the summer selling season.

Yes, there is a summer selling season. 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 a good idea to sell in Cape Coral? When the reason for selling is right for you!

In good times and in challenging times, one factor you cannot remove from the Cape Coral real estate market is the waterfront appeal. 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 strong start. For the five months of the year, sales are more than 90 percent over sales at this time last year.

Foreclosures

The number of foreclosures in Cape Coral is falling. Buyers looking for foreclosure opportunities have fewer to choose from and steady competition from many buyers. For the first five months of this year, non-distressed sales accounted for almost 40 percent of the total sales. In all of 2009, non-distressed sales were only 27 percent 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.

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 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 homebuyer 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 we are blessed to enjoy every day – a warm, sunny and tropical waterfront living community.

Source: New Press June, 2010