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Despite water woes, Cape home sales solid in 2018

January 25, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

Today, we are doing our year-end review by taking a look back at the number of closed sales for Cape Coral single-family homes during 2018. This report does not include information about condominium sales, and we also exclude foreclosures and short sales from our numbers because they make up a relatively small percentage of the sales in our current market. These results are as of Jan. 20, 2019, and they are subject to revisions and updates. We will have a separate year-end report about our condo market in two weeks.

In the overall Cape Coral single-family home market, there were a total of 4,996 homes sold in 2018, for an average of 416.33 closed sales per month. This was an increase of 5.51 percent over the 4,735 homes sold in all of 2017, when the number of homes sold averaged 394.58 per month. However, we did see a decline in the number of closed sales in the overall single-family home market for the month of December, dropping 26.82 percent to 322 sales from 440 closed sales in December 2017, and down 3.59 percent from the 334 sales in November of last year. This broke a five-year trend, dating back to 2013, of having a higher number of sales in December than in November. Quarterly sales were also off, with a decline of 6.94 percent to 1,032 sales in the fourth quarter of 2018, compared to 1,109 sales in the fourth quarter of 2017, and 18.93 percent below the 1,273 closed sales in the third quarter of last year. This was the sixth straight year, also dating back to 2013, that the number of closed sales in the fourth quarter were lower than in the third quarter in our overall market.

Gulf access canal homes

In the Cape Coral single-family Gulf access canal home segment, there were a total of 937 homes sold in 2018, for an average of 78.08 closed sales per month. This was a decrease of 4.97 percent from the 986 homes sold in all of 2017, when the number of homes sold averaged 82.17 per month. There was also a decline in the number of closed sales in Gulf access homes for the month of December, dropping 12.5 percent to 56 sales from 64 closed sales in December 2017, but this past December was 9.8 percent above the 51 homes sold in November 2018. This was the fourth straight year in this segment, dating back to 2015, of having a higher number of sales in December than in November. However, quarterly sales were off, with a decline of 5.62 percent to 168 sales in the fourth quarter of 2018, compared to 178 sales in the fourth quarter of 2017, and 22.22 percent below the 216 closed sales in the third quarter of last year. This was the sixth straight year, dating back to 2013, that the number of closed sales in the fourth quarter came in lower than in the third quarter in this segment, so it was nothing out of the ordinary. The second quarter of 2018 was the peak quarter of the year with 336 closed sales, which is the typical seasonal trend in our market.

Sailboat access canal homes

In the Cape Coral single-family sailboat access canal home segment, which is a subgroup of Gulf access homes, there were a total of 443 homes sold in 2018, for an average of 36.92 closed sales per month. This was an increase of 1.14 percent from the 438 homes sold in all of 2017, when the number of sailboat access homes sold averaged 36.50 per month. We have now had more than 400 sales per year in this segment in three of the last four years, with only 2016 dipping below this mark to 387 sales, after reaching 421 sales in 2015. The number of closed sales in the month of December came in at 32, which was flat with the 32 sales from December 2017, but 52.38 percent higher than the 21 closed sales posted in November of last year. In our column back on Dec. 28, when we were analyzing the sales numbers for this past November, we noted that in recent years it was typical to see an increase in closed sales from the month of November to the month of December of at least 60 percent in the sailboat access home segment. We viewed getting this kind of a rebound in closed sales from the low of the year of 21 sales in November to something upwards of 33 closed sales in December as one of the first indicators of how much the water quality issues of last year might continue to linger over our market. Although we fell just shy of the 60 percent mark, we'll call the increase to 32 closed sales in December as being "close enough for horseshoes and hand grenades," while we wait to see if we climb back towards the typical peak sales numbers sometime between March and June of this year. Barring a return to any significant water issues in the upcoming months, we appear on track to put the water crisis of last year mostly behind us.

Another positive for the sailboat access home segment was that the 32 closed sales in December matched the 32 sales from December 2017. However, we did see the typical seasonal dip in the quarterly numbers, with the fourth quarter posting a total of 66 sales, down 14.29 percent, compared to the 77 sales in fourth quarter of 2017, and down 29.79 percent from the 94 sales in the third quarter of 2018. This marks the sixth straight year that the fourth quarter sales came in below the third quarter, while the second quarter of 2018 had the highest number of sales, with 156.

Freshwater canal homes

In the Cape Coral single-family freshwater canal home segment, there were a total of 530 homes sold in 2018, for an average of 44.17 closed sales per month. This was an increase of 15.22 percent from the 460 homes sold in all of 2017, when the number of closed sales averaged 38.33 homes per month. There was a decline in the number of closed sales in freshwater canal homes for the month of December, dropping by 21.95 percent to 32 sales from 41 closed sales in December 2017, and this past December was 23.81 percent below the 42 homes sold in November 2018. Quarterly sales were also off, with a decline of 2.56 percent to 114 sales in the fourth quarter of 2018, versus 117 sales in the fourth quarter of 2017, and 11.63 percent below the 129 closed sales in the third quarter of 2018. The second quarter of 2018 was the peak quarter for the third consecutive year for freshwater canal homes, with 151 sales, as the trends in this segment are less consistent.

Dry lot homes

In the Cape Coral single-family dry lot home segment, there were a total of 3528 homes sold in 2018, for an average of 294 closed sales per month. This was an increase of 7.36 percent from the 3,286 homes sold in all of 2017, when the number of closed sales averaged 273.83 homes per month. However, there was a decline in the number of closed dry lot home sales in the month of December, with a drop of 29.73 percent to 234 sales from 333 closed sales in December 2017, and this past December was 2.09 percent below the 241 homes sold in November 2018. Quarterly sales were also off, with a decline of 7.64 percent to 750 sales in the fourth quarter of 2018, compared to 812 sales in the fourth quarter of 2017, and 19.09 percent below the 927 closed sales in the third quarter of last year. The second quarter of 2018 was the peak quarter for the ninth consecutive year, with 1,038 dry lot home sales.

(The December 2018 sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, as of Jan. 20, 2019. 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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