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Higher supply of homes creates a ‘Bob Barker’ market

June 28, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

If you are looking to sell your Cape Coral home, pricing it right to our current market will be your truth or consequences moment in getting the job accomplished, with buyer's remaining patiently rational as they look to buy reasonably priced homes. The fact is, in today's Internet world, there is pretty much no amount of marketing capable of overcoming an overpriced home, as buyers are but several clicks away from being well informed about home prices in our local market. With the average number of active listings in the Cape's various property segments running anywhere from 7.28 percent to 15.79 percent higher through the first five months of this year versus last year, we have a correspondingly higher supply of overpriced homes just sitting on the market unsold. This puts us in Bob Barker-like market conditions, with an audience full of excited and qualified people wanting to come on down and buy a home in Cape Coral, but they will only make their move when the price is right.

In the overall Cape Coral single-family home market, the monthly supply of unsold homes came in at 5 months in May, which was even with the 5 months of unsold supply registered in May 2018, and 16.67 percent below the 6 months of supply in April of this year. In the first five months of 2019, the level of unsold supply in the overall Cape single-family home market has averaged 7.6 months, or 18.75 percent higher than the average of 6.4 months over the first five months of last year. This places our overall single-family home market in more of a neutral market so far in 2019, although we would expect to see the numbers for the upcoming single months of unsold supply to run below the yearly average during the summer months. The number of active listings for single-family homes in the overall Cape market has averaged 3,072.6 per month through May 31, which was 10.07 percent higher than the average of 2,791.4 active listings per month over the first five months of 2018.

Gulf access canal homes

In the Cape Coral single-family gulf access canal home segment, the monthly supply of unsold homes came in at 7 months in May, which was 16.67 percent higher than the 6 months of unsold supply registered in May 2018, but 12.5 percent lower than the 8 months of supply in April of this year. In the first five months of 2019, the level of unsold supply in this segment has averaged 10.4 months, or 8.33 percent higher than the average of 9.6 months over the first five months of last year. This places this segment in a higher inventory buyer's market so far in 2019. The number of active listings for gulf access canal homes in the Cape has averaged 882 per month through May 31, which was 11.34 percent higher than the average of 792.2 active listings per month over the first five months of 2018.

Sailboat access canal homes

In the Cape Coral single-family sailboat access canal home segment, the monthly supply of unsold homes came in at 8 months in May, which was 14.29 percent higher than the 7 months of unsold supply registered in May 2018, but 11.11 percent lower than the 9 months of supply in April of this year. In the first five months of 2019, the level of unsold supply in this segment has averaged 10.4 months, or 13.04 percent higher than the average of 9.2 months over the first five months of last year. This puts this segment in a higher inventory buyer's market so far in 2019. The number of active listings for sailboat access homes in the Cape has averaged 436.2 per month through May 31, which was 7.28 percent higher than the average of 406.6 active listings per month over the first five months of 2018.

Freshwater canal homes

In the Cape Coral single-family freshwater canal home segment, the monthly supply of unsold homes came in at 4 months in May, which was 42.86 percent lower than the 7 months of unsold supply registered in May 2018, and 50 percent below the 8 months of supply in April of this year. The 4 months of supply in May was the single lowest monthly supply reading in freshwater canal homes since it came in at 4 months back in June 2013. In the first five months of 2019, the level of unsold supply in this segment has averaged 8.2 months, or 20.59 percent higher than the average of 6.8 months over the first five months of last year. So despite the lower 4 month unsold supply number for the single month of April, which on its own would be considered as a seller's market, there is likely to be a hangover effect from the higher levels of unsold supply in the first four months of this year. Based on that, we would consider this segment to be in more of a neutral market right now, with the potential to feel a lot more like a seller's market over the next several months. The number of active listings for freshwater canal homes in the Cape has averaged 346.2 per month through May 31, which was 15.79 percent higher than the average of 299 active listings per month over the first five months of 2018.

Dry lot homes

In the Cape Coral single-family dry lot (non-canal) home segment, the monthly supply of unsold homes came in at 5 months in May, which was even with the 5 months of unsold supply registered in May 2018, but 16.67 percent lower than the 6 months of supply in April of this year. In the first five months of 2019, the level of unsold supply in this segment has averaged 7 months, or 20.69 percent higher than the average of 5.8 months over the first five months of last year. Dating back to 2015, the monthly average for the unsold supply of dry lot homes has been below 6 months by the end of May of each year, which put this segment in a lower inventory seller's market. However, the average of 7 months of unsold supply through the end of May, has dry lot homes in a somewhat higher inventory neutral market so far in 2019, as this segment is also trying to shake off the higher levels of unsold supply from the first four months of this year. The number of active listings for dry lot homes in the Cape has averaged 1,840.2 per month through May 31, which was 8.25 percent higher than the average of 1,700 active listings per month over the first five months of 2018.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of June 16, 2019. It was compiled by Bob and Geri Quinn and it includes information specifically for Cape Coral single family homes, and does not include condominiums, short sales, or foreclosures. 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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