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Mid-year unsold Cape condo supply higher than 2018

August 16, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

After suffering through higher than normal monthly unsold supply levels in the first quarter of this year, the Cape Coral condominium market experienced a much needed steep decline in its inventory during the recently completed second quarter of this year. However, despite this across-the-board second quarter decline in condo supply, the mid-year 2019 numbers were still tracking well above the supply levels for the first half of last year. As you look at the numbers for each condo segment below, keep in mind that a lower level of unsold supply tends to favor sellers and it is generally better for our market, as it helps to provide support for prices by creating more competition between buyers. A higher level of unsold supply tends to favor buyers because it creates more competition between sellers, who may need to make their property stand out from the others by reducing their price, or offering other incentives to attract a buyer. This scenario can put downward pressure on prices.

There are a lot of other factors that can influence our local real estate market, from interest rates, to tax policies, the economy and market conditions in other parts of the country, to name a few. In analyzing the current condition and trends in the Cape Coral market, we look at a broad range of these factors, along with monitoring various local market statistics. We also collect valuable real time anecdotal information about the attitudes of both buyers and sellers when working with them directly, or through other agents. Through this added "on the ground" working perspective, we know that pricing real estate accurately to the current market is without a doubt the single biggest factor in attracting buyers and getting a property sold. Properly analyzing the pluses and minuses of a property and getting the initial listing price close enough to the most likely reasonable price range at which a home will be sold, along with being able to quickly and honestly assess the situation when a home is overpriced, seem to be the most difficult aspects of the process for sellers. We base these observations on the fact that we continue to have a very limited supply of reasonably-priced homes and condos on the market, in large part, because a reasonably-priced property will usually go under contract with a buyer within days or weeks of coming onto the market. On the flip side, we continue to have a much larger supply of overpriced homes, condos and vacant lots listed for sale and just sitting on the market unsold.

In the overall Cape Coral condominium market, the monthly supply of unsold condos came in at 6 months in June, which was 14.29 percent lower than the 7 months of unsold supply in June 2018, but 20 percent above the 5 months of unsold supply from May of this year. The overall unsold supply of Cape condos was lower in the second quarter, with an average of 5.67 months of inventory, which was 5.5 percent below the average of 6 months of unsold supply in the second quarter of 2018, and 39.23 percent less than the average of 9.33 months of unsold supply in the first quarter of this year. Through June 30, the overall supply of unsold condos in the Cape has averaged 7.5 months in 2019, or 25 percent higher than the average of 6 months of supply over the first six months of 2018. This places our overall condo market in a neutral market at mid-year.

Gulf access canal condos

In the Cape Coral gulf access canal condo segment, the monthly supply of unsold condos came in at 9 months in June, which was even with the 9 months of unsold supply in June 2018, but 50 percent higher than the 6 months of unsold supply in May of this year. In the second quarter, the monthly supply of unsold condos in this segment averaged 7 months, which was 4.95 percent higher than the average of 6.67 months of unsold supply in the second quarter of 2018, but down 43.23 percent from the average of 12.33 months of supply in the first quarter of this year. Through June 30, the supply of unsold gulf access canal condos in the Cape has averaged 9.67 months in 2019, or 41.58 percent higher than the average of 6.83 months of supply over the first six months of 2018. This has the gulf access condo segment bordering on being in more of a buyer's market at mid-year.

Sailboat access canal condos

In the Cape Coral sailboat access canal condo segment, which is a subgroup of gulf access condos, the monthly supply of unsold condos came in at 10 months in June, which was even with the 10 months of unsold supply in June 2018, but 42.86 percent higher than the 7 months of unsold supply in May of this year. In the second quarter, the monthly supply of unsold condos in this segment averaged 7.67 months, which was 7.92 percent lower than the average of 8.33 months of unsold supply in the second quarter of 2018, and 47.72 percent below the average of 14.67 months of supply in the first quarter of this year. Through June 30, the supply of unsold sailboat access canal condos in the Cape has averaged 11.17 months in 2019, or 45.63 percent higher than the average of 7.67 months of supply over the first six months of 2018. This has sailboat access condos in a higher inventory buyer's market at mid-year.

Dry lot condos

In the Cape Coral dry lot (non-canal) condo segment, the monthly supply of unsold condos came in at 5 months in June, which was even with the 5 months of unsold supply in June 2018, but 25 percent higher than the 4 months of unsold supply in May of this year. In the second quarter, the monthly supply of unsold condos in this segment averaged 4.67 months, which was equal to the average of 4.67 months of unsold supply in the second quarter of 2018, but down 29.99 percent from the average of 6.67 months of supply in the first quarter of this year. Through June 30, the supply of unsold dry lot condos in the Cape has averaged 5.67 months in 2019, or 13.4 percent higher than the average of 5 months of supply over the first six months of 2018. This places the dry lot condo segment solidly in a lower inventory seller's market, with less than 6 months of unsold supply available for sale at mid-year.

We continue to see a lot of interested buyers looking for homes, condos and vacant lots in Cape Coral, but they remain very rational about what they will pay for their piece of paradise.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Aug. 3, 2019. It was compiled by Bob and Geri Quinn and it includes information specifically for Cape Coral condominiums, townhouses and villas, and it does not include single-family homes, 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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