Today's article focuses on closed sales information reported from January 1, 2011, through June 6, 2011. All of these sales occurred in Cape Coral and are a matter of public record. I selected single-family, three bedrooms, two baths as the basic criteria. That means that all homes have a minimum of three bedrooms and two full baths. There were a total of 2,417 sales ranging from $30,000 to $1,175,000.
We will start with the lowest price homes from $30,000 to $74,999 where 650 sales took place. There were 535 sales in the $75,000 to $99,000 range. The largest segment of the market occurred in the $100,000 to $199,000 range where there were 775 sales.
A sharp decline then occurred in the $200,000 to $299,000 range with 250 sales. There were only 40 sales in the $401,000 to $500,000 range. From there, the numbers shrink even more. From $501,000 to $600,000 there were only 13 sales over the past five and a quarter months. The $601,000 to $700,000 range also had 13 sales. In the $701,000 to $800,000 range there were only five sales.
From $801,000 to $900,000 there were also five sales. There was only one sale in the $901,000 to $1 million range. And finally, between $1.1 million and $1.175 million, there were a total of three closed sales.
The total number of sales for the same period in 2010 was 2,687, representing an 11 percent negative change in sales for 2011. The majority of sales occurred in the $100,000 to $199,000 price range with 929 closed transactions. There were also six sales in the $901,000 to $1,000,000 range in 2010 for the same period.
There are currently 1,407 active listings of residential single family homes on the market. When you compare that to the number of closed sales, the absorption rate is relatively high. However, what has to be considered now is the number of new listings taken on a daily basis, to the number of closed sales of the same period. If there are 100 closed sales each day, and the number of new listings is exactly 100, then we are experiencing a balanced supply and demand.
When sales exceed the number of new listings, then we have a shortage of inventory, and prices may creep upward due to higher demand. However, be-cause the largest segment of sales occurs in the $100,000 to $200,000 range, this is likely to be the range of most activity for quite some time when you consider the predominant square foot sizes and age of single family homes.
Mario D'Artagnan is a broker associate at Paradise Realty, 1402 S.E. 47th Street, Cape Coral, Florida, specializing in domestic and European clientele. He is a former investigator for the Florida Real Estate Commission. He is also a former real estate instructor. He is a published author and has been a keynote speaker on the subject of agency law. Mario is also a veteran of the U.S. Air Force. For questions or comments contact him at: email@example.com or call 239-565-4445 or visit www.mariodartagnan.com.