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High-end Cape homes posted solid numbers in 2018

January 11, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

It's time once again for our quarterly version of "Lifestyles of the Rich & Famous," as we take a look at the sales results in the high end of the Cape Coral single-family home market for the recently completed fourth quarter of 2018. But first, we will set the table with an overview of the entire year in the million dollar-plus home price segment for last year.

In 2018, there were a total of 46 single-family homes sold in Cape Coral at $1 million and above, which was 9.52 percent above the total of 42 such homes sold back in 2017. Over the course of last year, the Cape's high-end home segment followed our typical seasonal pattern with the highest number of closed sales, totaling 19, occurring in the second quarter of the year. The highest single month was April, with 10 closed sales. Keep in mind that it typically takes 30 to 45 days from the time a home goes under contract with a buyer as a "pending sale," before everything with the transaction is finalized, at which time it becomes a closed sale. The first quarter of 2018 had the second highest total of the year, with 12 closed sales, followed by 8 sales in the third quarter and 7 closed sales in the fourth quarter. Four of the 46 sales in 2018 were right at the $1 million mark, while two sales were for over $2 million, and the highest priced sale of the year was for $3,925,000 back in May. This highest priced home sold for 33.47 below its list price of $5.9 million, and back in 2015, this home was listed for just under $7 million without being sold. The other 39 homes in this high-end group were all sold for below $2 million. Only one home from the northwest Cape made this list, while 28 of the high-end sales were in the southwest Cape, and the remaining 17 were located in the southeast Cape. Also, a total of 27 of the 46 sales, or 58.87 percent, were cash deals, and this included the eight highest priced sales of the year.

The seven closed sales in the fourth quarter of 2018 ranged from a low of $1.1 million to a high of $1.99 million, with the two highest priced of these homes located in the exclusive, sailboat access Tarpon Estates section of Tarpon Point Marina in the southwest Cape. In addition, one of these seven homes was located in Cape Harbour, and two homes were down the street from the Yacht Club, with one of these properties on the river, while the other nearby home was only a stone's throw away from the river. Another one of these seven homes was near Bimini Basin, and a riverfront home in the Orchid neighborhood, located off of Del Prado Boulevard just a bit north of the Cape Coral bridge, rounded out this group.

Digging a little deeper into the details, three of these seven sales were cash deals, while the other four were purchased with conventional mortgage loans. Five of these homes were "newer," having been built between 2012 and 2018, while the other two homes were both built in 2002. This group also confirmed one of our market themes about home prices over the past several years, as we have been pointing out that a lot of homes are overpriced when they are first listed for sale on the market. When we track the numbers, it has been pretty common for homes to end up selling for 10 to 15 percent, or more, below their initial list prices, and they often require at least one fairly good sized price reduction before attracting an offer from a buyer. Along these lines, only two of these seven high-end homes sold for a price within 5 percent of their initial list prices, while another two homes sold for between 12 to 13.27 percent below their initial list prices. The other three homes sold for between 18.3 percent and 27.66 percent below their initial list prices, with two of these three having to make price reductions totaling between 11.85 percent to 23.62 percent, before before being able to attract a buyer. These ratios of reasonably priced to overpriced million dollar homes are generally in line with what we have been seeing in the overall market with initial list prices versus the final sales prices of homes in various price ranges in the Cape.

As we mentioned above, the highest priced Cape Coral home sale in the fourth quarter of 2018 was a home in Tarpon Estates, which was built in 2012 with approximately 4,173 square feet of living area. The home was custom built featuring four bedrooms and four bathrooms, with an infinity edge pool and spa with wide water and wetland preserve sunset views. The home also has a large open kitchen and oversized 90 degree pocketing sliding glass doors, opening up the back of the home to the pool area. It included a three-car garage, plus a golf cart garage, along with a recently installed large dock area with two boat lifts. This home was initially listed for $2.49 million in March 2018, and the price was lowered to $2,195,000 following two price reductions, before ultimately being sold for $1.99 million in November 2018. This sales price was $500,000 or 20 percent below the initial listing price, and according to the available records, the seller paid $2.2 million for the home when purchased in March 2017, so it wassold at a 9.55 percent loss.

One of the more interesting stories that helps illustrate the level of our current market compared to the market conditions back in 2005 and 2006, involved a sailboat access home that was sold in Cape Harbour for $1.25 million in November 2018. The final sales price of this home, which was built in 2002, was only 3.77 percent below the initial list price of $1,299,000. The fact that it was sold within 5 percent of its initial list price, and that the sale closed in only 46 days, are indicators that this home was priced reasonably to the market. The seller purchased this home for $1 million in July 2015, in a cash deal at a price that was some 25 percent below the list price of $1,340,000. However, the interesting thing about this home was the fact that a buyer bought the home from the original owner for $1.49 million back on Jan. 31, 2005, during the irrational exuberance phase of the real estate market. That buyer ended up selling the home for $925,000 on Jany. 13, 2010, incurring a loss of $565,000 after selling it for 37.92 percent less than their purchase price.

As illustrated by these million dollar-plus homes, buyers in our current market are remaining rational and willing to pay what they view as a reasonable price for a home. This is the case in all price ranges, so if the showing activity on your home is slow or if your home does not go under contract with a buyer fairly quickly, your home is most likely overpriced to the market.

(The year-end 2018 sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County as of Jan. 5. 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 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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