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Cape dry lot homes solid, but weakness in Gulf access

November 2, 2018
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

Last week we focused on the weakening number of closed sales and a possible breakdown towards somewhat lower prices in the median sales price trend for Cape Coral single-family sailboat access canal homes. This violation of a 20-month price trend was the first sign we have seen in pricing that could be related to the water quality issues, so it is something we will be following closely in the upcoming months. Today we will look at the closed sales and median sales prices for our other home segments, keeping in mind that we are comparing against a Hurricane Irma-influenced market, where home sales dropped off for several months beginning in September 2017, after Irma came through our area.

In the overall Cape Coral single-family home market, the number of closed sales came in at 352 in September, which was 14.29 percent above the 308 sales in September of last year. However, sales this September declined by 25.74 percent from the 474 closed sales back in August of this year. In the third quarter, closed sales were up 7.56 percent to a total of 1,267 this year, compared to 1,178 sales in the third quarter of 2017, but they were down over 17 percent versus the 1,528 sales in the second quarter of this year. This decline in sales from the second quarter to the third quarter has been a normal seasonal pattern since 2010.

The median sales price for the overall Cape Coral single-family home market was $234,000 in September, down a fraction from $235,000 in September of 2017, and off by 2.73 percent from $240,575 in August of this year. The monthly median sales prices have ranged from a low of $230,000 to a high of $242,000 in 2018, with an average of $237,386 per month through Sept. 30, which is 3.39 percent higher than the $229,594 per month average posted over the first nine months of 2017. In the third quarter, the overall median sales price in the Cape averaged $234,858 per month, up 2.13 percent from the average of $229,967 per month in the third quarter of 2017, but down 2.4 percent from the $240,633 posted in the second quarter of this year.

Gulf access canal homes

The number of closed sales in the Cape Coral single-family gulf access canal home segment reached a monthly low for the year in September, with 54 homes sold. This was 35.71 percent below the 84 closed sales recorded in August of this year, and 22.86 percent below the 70 sales from September of last year, when closed sales declined by 19.54 percent from August to September following Hurricane Irma. The number of closed sales in the gulf access canal home segment dropped 9.75 percent to 213 sales in the third quarter of this year, versus 236 closed sales in the third quarter of 2017, and were 36.42 percent below the 335 closed sales in the second quarter of this year. This weakness in closed sales is likely tied more to the water quality issues, instead of the typical seasonal sales declines.

The September median sales price for Cape Coral single-family gulf access canal homes dipped to its lowest single monthly level for 2018, down 14.21 percent to $407,500 from $475,000 in September 2017. Last September was the highest single month for median sales prices in the gulf access canal home segment in 2017, in what turned out to be a one-month price spike. It was also the highest single monthly total since May 2007, when the median sales price registered at $494,500 as home prices were declining into a rapidly developing bear market, with gulf access homes in the Cape down from a peak price of $698,000 in January 2006. In the third quarter, the median sales price averaged $424,500 per month, down 2.56 percent from the average of $435,667 per month in the third quarter of 2017, and down by 2.49 percent from the $435,333 posted in the second quarter of this year.

Freshwater canal homes

We also saw the number of closed sales in the Cape Coral single-family freshwater canal home segment reach a monthly low for the year in September, with 33 homes sold. This was 23.26 percent below the 43 closed sales recorded in August of this year, but 37.5 percent above the 24 sales in September 2017. The number of closed sales in the Cape's freshwater canal home segment was 27.72 percent higher in the third quarter of this year, reaching a total of 129 sales versus the 101 closed sales in the third quarter of 2017, but they were down 15.13 percent from the 152 closed sales in the second quarter of this year.

Median sales prices for freshwater canal homes reached their monthly peak for the year at $287,500 in September, which was identical to September 2017, and up 5.7 percent from $272,000 in August, which was the low month so far this year. In the third quarter of this year, median sales prices in this segment averaged $280,167 per month, which was virtually flat with the $279,775 per month average from the second quarter, and only 1 percent higher than the $277,333 per month posted in the third quarter of 2017. This segment has been locked in a median sales price range of roughly $270,000 to $280,000 per month since September 2016.

Dry lot homes

The number of closed sales in the Cape Coral dry lot home segment was up 23.83 percent to 265 homes sold in September, compared to 214 in September 2017, but down 23.41 percent from the 346 sold in August of this year. Seasonally, the number of closed sales in the dry lot home segment in the third quarter of the year is almost always weaker than in the second quarter, so it was no surprise that sales dropped about 11 percent to 924 in the third quarter versus 1,038 in the second quarter of this year. However, closed sales were up 9.9 percent over the 841 sold in the third quarter of 2017.

September median sales prices for Cape Coral dry lot homes were up only 1.84 percent to $218,950 versus $215,000 in September 2017, but down about 3 percent from $225,750 in August of this year. On a quarterly basis, median sales prices were 3.71 percent higher to an average of $ 219,400 per month in the third quarter versus an average of $211,550 per month in the third quarter of 2017, and they came in 2.16 percent above the average of $214,758 per month in the second quarter of this year.

(The September and third quarter of 2018 sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County as of Oct. 19, 2018. It was compiled by Bob and Geri Quinn and 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 39 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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