2011 Off-water Homes
You will hear the term off-water homes. This basically refers to homes not on canals. Cape Coral has an extensive system of both freshwater canals and gulf access canals. In 2011, 4158 Off-water homes sold through MLS. There are currently 1559 active or pending which is 4.5 months supply. In comparison, 1604 waterfront homes sold and there are 1088 active or pending or 8.1 months supply. Basically, the demand for off-water homes is 2.5 times greater than for water front homes and that the amount of unsold inventory when compared to demand is 55% less.
Sales Trends
We have broken the trends down between pool or non pool off-water homes to clarify buyer trends. In 2011, pool homes sold for a median price of $125000, which was $5000 over 2010. It is pretty obvious to see buyers preferences as the homes with contracts are median priced at $129450 while homes without a contract are median priced at $179900 about 40% over homes with contracts.
Homes without pools sold for a median price of $77000, which was up $1000 from 2010. Homes with current sales contracts but not closed are listed at a median $82000. Just as with pool homes, the homes listed but not yet under contract are priced 40% over homes with contracts at $114500.
Sales Volume
Sales for 2011 continued to decrease due primarily to the reduction in inventory of lower priced homes. This has been due essentially to the reduced volume of foreclosures. There are currently only 49 off-water bank owned homes on the market in Cape Coral without a current sales contract. This compares to 260 a month which were selling in 2009.
Where prices go will depend on whether buyers can afford and will choose to increase what they wish to spend on a home. We have seen a definite trend from first time buyers to people either relocating here or buying a second home. One challenge which exists is that buyers see what past buyers have paid and, if they are obtaining financing, have to deal with appraisals which are based on past sales. We have seen buyer demand going down in terms of reduced sales as the inventory of lower priced homes has decreased. Prices of homes still remain a bargain compared to the peak of our market.
Steve Koffman
Broker/Associate
Century 21 Sunbelt Realty,Inc
239-443-5191 Steve@koffman.com
