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2017 median sales prices up, unsold supply improves

February 2, 2018
By BOB and GERI QUINN - Homing In , Cape Coral Daily Breeze

In reviewing the year-end results for the Cape Coral single-family home market in 2017, we found a continuation of the significant differences in the median sales prices and the monthly supply of unsold homes between the various property segments in our market. This is why it is important for both buyers and sellers to avoid using just a general overview of the Cape's market data, and instead analyze our market by its specific property types, which will help provide a more accurate reading on the different conditions of the markets within our market.

To help illustrate this, we will use the data from the overall Cape Coral single-family home market to set a Cape Coral-specific benchmark. This provides a general overview against which we can compare each of Cape Coral's four specific, primary property segments, as shown below. By utilizing more specific market data as the basis for comparing different homes and neighborhoods, one will be more likely to determine an accurate and realistic price range within which a home will be bought or sold.

For the year, the median sales price in the overall Cape Coral single-family home market averaged $229,444 per month in 2017, which was 6.33 percent higher than the average median sales price of $215,786 per month in 2016. The monthly supply of unsold homes listed for sale in the overall Cape Coral single-family home market averaged 6.25 months in 2017, which was 1.26 percent lower than the average of 6.33 months of unsold supply in 2016. This puts us in an overall neutral market, where neither a buyer nor a seller have any edge in negotiating the price and terms on the purchase or sale of a home. We expect to see a seasonal spike-up to a higher level of unsold supply in January and February, followed by a decline in supply sometime in the month of March. As a comparison to these benchmarks, let's look at the results by specific property segments.

Gulf access

canal homes

In 2017, the median sales price for gulf access canal homes averaged $422,423 per month, with all 12 months coming in above the $400,000 mark for the first time since 2006. This was 8.87 percent higher versus the median sales price average of $388,021 per month in 2016, when only 3 months of that year came in above $400,000. Back in 2006, as median sales prices started to show some early signs of weakness, it averaged $561,691 per month.

The monthly supply of unsold Cape Coral single-family gulf access canal homes listed for sale averaged 9.33 months in 2017, which was 13.20 percent lower than the average of ?10.75 months of unsold supply in 2016. The average of 9.33 months in 2017, which puts this segment in the higher end of a neutral market, was the lowest average monthly unsold supply since back in 2013, when it was 8.33 months. We had a typical seasonal increase in the unsold supply of gulf access homes to 11 months in the just completed fourth quarter, which was lower than the 12 months of unsold supply posted in the fourth quarter of 2016. If this trend towards a lower supply continues in 2018, it would be positive for this segment, however, we expect inflated supply levels in January, before seeing declines in the supply.

Sailboat access canal homes

In 2017, the median sales price for Cape Coral sailboat access homes averaged $444,975 per month, up 14.84 percent versus the average median sales price $387,477 per month in 2016. This segment had a large spike-up in its median sales price to $481,250 in the month of December 2017, rising 25 percent from $385,000 in December 2016.

The monthly supply of unsold single-family sailboat access canal homes listed for sale in Cape Coral averaged 10.17 months in 2017, down 13.85 percent versus the average of 12.42 months of unsold supply in 2016. This segment continues on the edge of being in a buyer's market, especially considering the higher seasonal supply of unsold homes, which averaged 13 months for the fourth quarter of 2017. A seller in this segment tends to face stiff competition from other seller's in trying to attract buyers to their home.

Freshwater canal homes

In 2017, the median sales price for freshwater canal homes averaged $279,204 per month, up 2.58 percent versus the average median sales price $272,183 per month in 2016.

The monthly supply of unsold single-family freshwater canal homes listed for sale in Cape Coral averaged 6.92 months in 2017, the same as in 2016. The freshwater canal segment remains in a neutral market.

Dry lot homes

In 2017, the median sales price for Cape Coral dry lot homes averaged $206,202 per month, up 8.26 percent versus the average median sales price $190,464 per month in 2016. The median sales price in this segment has been at, or above, $200,000 for 10 straight months, while December 2016, was the only month of that year to break above this level.

The monthly supply of unsold Cape Coral single-family dry lot homes averaged 5.08 months in 2017, up 5.18 percent versus the average supply of 4.83 months in 2016.

Dry lot homes are the only property segment in the Cape that is currently in a seller's market, where buyers are having to compete aggressively against other buyers over the limited supply of reasonably-priced homes listed for sale on the market. Buyers in this segment need to be comfortable with reacting quickly when they come across a reasonably priced home that meets their needs, especially at price points from about $250,000 and below.

(The December and year-end 2017 sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, as of Jan. 20, 2018, and it was compiled by Bob and Geri Quinn. It includes information specifically for Cape Coral single-family homes, not including condominiums, foreclosures or short sales. The data and statistics are believed to be reliable, however, they could be updated and revised periodically, and are subject to change without notice. The Quinns are a husband and wife real estate team with the RE/MAX Realty Team office in Cape Coral. They have lived in Cape Coral for over 38 years. Geri has been a full-time Realtor since 2005, and Bob, who also holds a Certified Financial Planner designation, joined with Geri as a full-time Realtor in 2014. Their real estate practice is mainly focused on Cape Coral residential property and vacant lots.)

 
 
 

 

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